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Against the backdrop of geopolitical uncertainties and war, the finance minister has strictly adhered to the macroeconomic stabilization function of the government in the interim budget 2024, with fiscal deficit-to-Gross Domestic Prod- uct (GDP) ratio pegged at 5.1% in FY25. She announced that the revised estimate of fiscal deficit-GDP ...
The uses of running a deficit
06/05/2024
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GROWTH STRATEGY. An interplay of fiscal and monetary policy would be needed to serve developmental goals.
The predominant narrative of the Interim Budget 2024 is the macroeconomic stabilisation function of a government in times of poly-crisis. The Finance Minister has reiterated that the fiscal consolidation is the primary instrument ...
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The Finance Minister has articulated her budget as a “humane” budget with fiscal consolidation as a primary consideration. A “beyond GDP” emphasis is welcome, incorporating the widening inequalities, climate change concerns and human capital formation.
Beyond the headline fiscal deficit number to GDP ratio pegged at 5.1 percent ...
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The fiscal deficit target for FY25 in the midst of weaker nominal GDP growth and disinvestment shortfall will be below 6 percent, slightly around 5.2-5.5 percent. This fiscal glide path is crucial to reach the 4.5 percent fiscal deficit to GDP by 2025-26 .
Against the backdrop ...