Lies About India’s Fiscal Deficit
Modi government has stated that the fiscal deficit would be kept at 3.4% of GDP. As per the last report the government has said that the target will be met. Since the sham budget presented in May 2019 the following major things have happened:
- GDP has been falling steadily. The fall in reality would be higher than the figures of 5% because the figure is not considering the informal sector, where the situation is much worse.
- Tax collection from GST has been falling.
- Government itself announced corporate tax reduction which would lower tax collection.
There are obvious reasons to believe that the government is lying.
Truth About India’s Fiscal Deficit
To get an idea about the truth of India’s fiscal deficit please read these reports.
Rajan said the actual fiscal deficit may be much higher than the combined fiscal deficit of states and the Centre at 7 per cent.