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Volume IconBeyond Headlines: Should there be a range for fiscal deficit target?

The govt expenditure this year (till October-end) was at roughly the same level as that seen in the same period last year

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Beyond Headlines with AKB

Many think that the Narendra Modi government has spent a lot this year, especially to mitigate issues faced by people in the wake of the coronavirus pandemic. But has it? It’s true that the government has announced stimulus packages to the tune of Rs 30 trillion. But if one were to make a like-to-like comparison, the govt expenditure this year (till October-end) was at roughly the same level as that seen in the same period last year. Given that expenditure was budgeted to be 13 per cent more this year, it is imperative that the finance minister spend more to expedite economic recovery. But where should she spend? Infrastructure, many say. Yes, of course the government should spend on infrastructure, but will that yield immediate benefits? 

A priority for the government art present should be investing in small-gestation projects for immediate rewards, says Business Standard Editorial Director A K Bhattacharya in this second episode of our special video series, Beyond Budget Headlines with AKB. Watch this video for his take on fiscal deficit target, govt expenditure, disinvestment, and more.

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In the first episode of the series, Mr Bhattacharya assessed whether Finance Minister Nirmala Sitharaman’s Budget 2021 will be a pandemic Budget or lockdown Budget. 

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First Published: Dec 21 2020 | 11:41 AM IST

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