Financial stability needed even if fiscal deficit rises: CII chief Kotak

The CII president is not in favour of waiver of interest by banks during the moratorium period

India needs to maintain financial and fiscal stability, even as fiscal deficit inevitably rises in the future amid shortfall in revenue and the need for more public spending, newly appointed president of the Confederation of Indian Industry (CII) Uday Kotak said on Thursday.

Terming India’s sovereign rating downgrade by Moody’s as a “warning shot”, Kotak said the government needs to maintain fiscal stability by boldly spending to mitigate the economic impact of the Covid-led crisis on individuals, businesses, and the financial sector.

Analysts estimate fiscal deficit to shoot up to 11.5 per cent of gross domestic product (GDP), up from