There is a need for more transparency in the budget to be presented next year. Whatever may be the need for finance for any new scheme in the present and future, their source should be known.
RBI's Monetary Policy Committee member Ashima Goyal said that the government is paying a large part of the revenue in the form of higher interest on the loan. The government should borrow only for productive sectors, which can generate more tax and other revenue. Goyal said that the last 10 months have been war-torn in Ukraine. This has pushed up international energy and food prices. India is particularly sensitive to this.
The fiscal deficit should be 4.5 percent in proportion to GDP
Goyal said efforts should be made to keep the fiscal deficit at 4.5% of GDP by 2025-26. It is expected that subsidies may be reduced as food and energy prices are coming down. Goyal said the mistake made in the 2000s should be avoided. At that time the expenditure was more than the tax revenue. The current economic policy is good.
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