Given the continuing fiscal slippage combined with a sharp economic slowdown, there is an urgent need for a policy response in the forthcoming Budget. The 2018 Finance Bill did away with the revenue deficit target, while retaining the fiscal deficit target at 3%. In this situation, is it warranted to suspend the Fiscal Responsibility and Budget Management Act less that two years after it was amended?
Discussing the issue are N.R. Bhanumurthy (Institute for Public Finance and Policy) and Ajit Ranade (Chief Economist, Aditya Birla Group).
