ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by M S MohantySubscribe to M S Mohanty

Macro-Economic Stability, Growth and Fiscal Reform-The Indian Perspective

Fiscal Reform The Indian Perspective M S Mohanty This paper evaluates various fiscal policy options from the point of view of macro-economic stability and growth in the Indian economy. The paper notes that the current programme of bringing down the fiscal deficit ratio to 4 per cent of GDP is expected to lower inflation and interest rates in the economy and strengthen the sustainability of fiscal balance in the long run. Given the greater integration between domestic and world financial markets, fiscal deficit assumes a great deal of significance as a policy instrument of maintaining the viability of external sector. In the context of growth, fiscal adjustment needs to be tailored to reverse the declining trend in infrastructure investment and basic social services and to improve the productivity of resources use in public sector.

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