Why Deficit ≠ Stimulus

March 2009
Business Today;3/22/2009, Vol. 18 Issue 6, p28
The article looks into the reasons for the rising fiscal deficit in India. It renounces the government's justification that the economic stimulus measures are the reasons for the fiscal deficit shot up which has risen to over 6 per cent of GDP, against the target of 2.5 per cent. According to economist Sachchidanand Shukla, the government's largesse like Rs 65,300-crore farm waiver, the rural employment guarantee programme and the Sixth Pay Commission are major resons for the deficit.


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