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Analysis: Congress guarantees may cause fiscal slippages. Can India afford it?

According to an economist who spoke on the condition of anonymity, the schemes outlined by the Congress in their manifesto could lead to a slippage of 1.5-2 percentage points to the fiscal deficit target of 5.1 percent for FY25 assuming everything else stays the same. But, measures like rationalising expenditure coupled with higher revenues on account of a widening tax base could very well limit any potential, sharp escalations to the deficit.
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UPSC Key—26th March, 2024: Smart Meter National Programme, New Collective Quantified Goals and India-Pakistan trade

Exclusive for Subscribers from Monday to Friday: Why Green finance and climate finance is relevant to the UPSC Exam? What significance do topics like smart electricity metering, total expenditure including capital expenditure and operational expenditure model (TOTEX) and India-Bhutan relations both the preliminary and main exams? You can learn more by reading the Indian Express UPSC Key for March 26, 2024.
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