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Debt reduction...
Financial Express Kochi
|January 27, 2025
Tweaking the current fiscal consolidation path driven only by fiscal deficit targeting, the Budget presented on July 23 last year announced a new regime which will be based on an annual reduction in the debt-GDP ratio from FY27 onwards.
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"If the general government (centre and states) debt is targeted to be brought down from a little over 80% of GDP now to 70% by the end of the 16th Finance Commission award period, the fiscal deficit should be somewhere close to 3.5%," Madras School of Economics director N R Bhanumurthy said.
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