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The uses of running a deficit
06/05/2024

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 …

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 …

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 …

(Co-authored with Balamuraly B.)
Asymmetric fiscal rules require wider discussion and debate, as Kerala has highlighted
Public debt management is getting wider attention in Centre-State financial relations, against the backdrop of recently constituted Sixteenth Union Finance Commission. One of the States in …

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 …