The recent trends in fiscal deficit show a need for effective management strategies. Experts like Dr. Rajiv Kumar, former Vice Chairman of NITI Aayog, suggest adopting a multi-pronged approach to reduce the deficit.
This includes increasing tax revenues, reducing unnecessary expenditures, and promoting economic growth. For instance, the government can focus on improving tax compliance, streamlining subsidies, and investing in infrastructure projects. By adopting such strategies, India can reduce its fiscal deficit from 6.8% to 5.5% of the GDP by 2025.
Effective fiscal deficit management is crucial for maintaining economic stability and promoting growth. It requires a careful balance between increasing revenues and reducing expenditures. With the right strategies in place, India can achieve its economic goals and ensure a sustainable future.