With a focus on reducing the fiscal deficit, the government has implemented policies to increase revenue and decrease expenditure. For instance, the recent tax reforms have led to a significant increase in tax collections, with a growth rate of 15% in the past year. Furthermore, the government has also introduced measures to reduce unnecessary spending, such as cutting down on non-essential subsidies.
These efforts have resulted in a reduction of the fiscal deficit by 2% of the GDP. The government’s commitment to fiscal prudence is a step in the right direction, as it will help to ensure the long-term sustainability of the economy. With a stable fiscal environment, businesses and investors can thrive, leading to increased economic growth and development. The government’s target is to reduce the fiscal deficit to 3% of the GDP by the end of the year, which is achievable with the current pace of reforms.