Spend, government, spend, to trigger growth SECTIONS Last Updated: May 27, 2021, 11:25 PM IST Share Synopsis Higher spending is needed to contain the toll on the economy due to lockdowns in the second wave of the pandemic. Reuters What about the fiscal deficit? India is a young, growing country, and growth will generate the resources to pay off debt. The point is to feed and sustain growth. At this juncture, says the RBI Annual Report, the Indian economy is at a cusp. A combination of public and private investment can lead on to fast growth. However, private investment has been timid, and public investment has to has the added role to play of crowding in private investment, even as it increases capital formation out of budgetary resources. RBI’s insight is no recondite truth. The sentiment is widely shared by industry as well, as reflected by banker and CII President Uday Kotak’s call for one more round of fiscal stimulus.