 "FM, sitharaman")
While unequivocally supporting fiscal expansion in the upcoming year, economists are urging the government to take the capital expenditure (capex) route, and preferably spend on capital assets and infrastructure projects, rather than raise allocation to rural-centric cash or employment schemes.
Former governor of the Reserve Bank of India, C Rangarajan, told Business Standard that a “little relaxation” of fiscal deficit target would be needed to arrest slowdown.
“Any excess government spending should be investment-led. We are in a situation where an investment slowdown is concurrent with weak consumer demand. Only capex would have a direct positive impact on the economy,”
