Fiscal Consolidation Ex-post the Escape Clause: A Call for “Excessive Deficit Procedure”
Publication dateMar, 2020
DetailsNIPFP Working Paper No.299
Launching an “excessive deficit procedure” in India is inevitable for growth revival. This is crucial especially when there is considerable ambiguity about why the “escape clause” was invoked in the Union Budget 2020 - whether to meet the shortfall in tax revenue emanating from the unanticipated fiscal outcomes of structural reforms or to boost the capital formation in the economy.