Combined Centre and state fiscal deficit may go up to 14%, says Subbarao

The former RBI governor also says that the Centre's current fiscal stimulus is not sufficient

Maintaining that the combined fiscal deficit of the Centre and states may go up to 13-14 per cent this fiscal, former RBI Governor Duvvuri Subbarao on Sunday said the financial stimulus announced by the Centre on March 26 on account of lockdown to contain spread of Covid-19, is "not sufficient".

Speaking at a webinar titled "The Challenge of the Corona Crisis - Economic Dimensions", organised by the city-based Manthan Foundation, Subbarao said the Centre needs to cap its borrowings as the open ended borrowings will have negative consequences such as pushing interest rates high.

"The government announced the fiscal support