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Utkarsh P

Utkarsh P

  • India's fiscal sustainability is a weak point - the country hasn't been able to reduce its deficit. The fiscal deficit of the centre and the states combined at more than 6% of the GDP is about twice as much of the other emerging market economies. Corporate tax cuts to stimulate investment could further

    India's fiscal sustainability is a weak point - the country hasn't been able to reduce its deficit. The fiscal deficit of the centre and the states combined at more than 6% of the GDP is about twice as much of the other emerging market economies. Corporate tax cuts to stimulate investment could further widen the deficit which may lead to the government resorting to hefty reductions in spending (general elections are nowhere close) something that could prove counterproductive amid slowing private consumption demand.