View: Don't shy away from running a larger fiscal deficit

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By SP Kothari & Karthik Ramanna, ET CONTRIBUTORSLast Updated: Feb 08, 2021, 12:21 AM IST

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A target figure for a country’s fiscal deficit cannot be arrived at in a vacuum. A nation’s economic growth rate, current level of indebtedness — debt-to-GDP ratio — and target fiscal deficit are all interrelated.

High forecasted GDP growth for 2021-22 creates an extraordinary occasion to be more aggressive with deficit financing.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

View: Don't shy away from running a larger fiscal deficit

A target figure for a country’s fiscal deficit cannot be arrived at in a vacuum. A nation’s economic growth rate, current level of indebtedness — debt-to-GDP ratio — and target fiscal deficit are all interrelated.

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