The pandemic-flagged need for a new fiscal framework4 min read 11 Jul 2022, 10:34 PM IST
Let’s adopt principles that allow counter cyclical action instead of using rigid numerical fiscal targets
The challenges of the covid pandemic necessitated the suspension of fiscal rules across the globe. The costs of dealing with the pandemic—well beyond the stimuli imparted during the global financial crisis (GFC)—raised global government and private debt to record-high levels. This crisis has been compounded by the Russia-Ukraine conflict. Looking ahead, better managed public finances across levels of government is a crucial lynchpin of any growth strategy in a post-pandemic framework.