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Perspective: Investment and Fiscal Deficit |
In this episode of the Perspective Prog. based on ‘Investment and Fiscal Deficit’. United Nations’ ‘World Economic Situation and Prospects 2022’ report has stated that India’s economic recovery is on a solid path. The UN report credited the vaccination drive, less stringent social restrictions, and supportive monetary stances as reasons for this growth adding that encouraging private investment will remain crucial to stay on the recovery path. Government has implemented several major reforms in recent years to boost investment and GDP growth. Various measures to support broad-based and inclusive economic development were announced in Union Budget 2021-22 followed by a relief package in June 2021 to strengthen public health and provide impetus for growth and employment measures. On the fiscal deficit front the rating agency ICRA in its recent report says that though government’s gross tax receipts is expected to overshoot the budgeted amount, the shortfall in disinvestment target this year may lead to a fiscal deficit of around 7 per cent of the GDP.