View: Don’t shy away from running a larger fiscal deficit
Last week’s Union budget for 2021-22 targets a fiscal deficit of 6.8%. It might sound counterintuitive, but this target is too conservative. With GDP growth projected to be 14.4% as the economy rebounds from the Covid-19 economic shock, India has a rare opportunity to run a larger fiscal deficit without pushing the debt-to-GDP ratio higher. … Read more