Fiscal consolidation Sub: Eco Sec: Fiscal Policy Context: In a bid to provide maximum flexibility to growth, the government has tweaked its approach to fiscal consolidation. It no longer wants to fix a fiscal deficit target New approach: Government wants to focus more on reducing debt and thereby the fiscal deceit What is […]

    Fiscal consolidation Subject :Economy Section: Fiscal policy Fiscal consolidation refers to the ways and means of narrowing the fiscal deficit. The seeds for fiscal consolidation were sown in the Union Budget of 1994 which highlighted the need for fiscal discipline and pronounced a policy to end monetising the deficit. Before 1994 deficit financed […]

    Fiscal Consolidation Subject – Economy Context – Two years of real growth in economic activities have been wiped out by COVID-19, which the Budget must take note of and support growth and fiscal consolidation. Concept – Fiscal consolidation implies reduction in debt accumulation and fiscal deficit. Governments undertake different policies to achieve fiscal […]

Subject: Economics Context: COVID-19 will significantly erode the fiscal consolidation achieved by the State governments in the past three years, the RBI said in a report. RBI has also said that Gross Fiscal Deficit (GFD) of the States would spiral during the current fiscal. Concept: Fiscal consolidation implies reduction in debt accumulation and fiscal deficit. […]