The great Indian fiscal dilemma3 min read . Updated: 17 Jan 2018, 01:53 AM IST
The government will want economic growth to pick up before the state and general electionsbut a higher fiscal deficit is not the solution
The state of the economy and the possibility that the government will miss the current year’s fiscal deficit target of 3.2% of gross domestic product (GDP) has put the spotlight on how it manages its finances. The details, of course, will be known when Union finance minister Arun Jaitley presents the last full budget of this government in about a fortnight. The debate on whether it should stick to fiscal consolidation or run a higher deficit to push growth is likely to intensify as we get closer to the budget.
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