Govt must keep an eye on the fiscal deficit – FM Nirmala Sitharama
Addressing a virtual event of industry body PHDCCI Sitharaman said careful monitoring and tackling of fiscal deficit was the “mool mantra” of the budget 2021.
The Centre's fiscal deficit increased, as it was forced to offer relief packages in the wake of the epidemic, despite a decline in revenue collection. Even though nominal GDP is expected to reverse a contraction in the FY22 and expand at 14.9%, the inevitability of continued spending to continue growth has led the Center to keep the fiscal deficit target elevated at 6.8% for the next fiscal as well.
She said that the government has managed to make the Budget transparent. "There is nothing under wraps or swept under the carpet. Whatever the government is borrowing or spending is open for everyone to see," she emphasized.
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