There is an atmosphere of uncertainty and lethargy on the economic front worldwide due to the coronavirus epidemic. Meanwhile, the Central Government has hoped for a golden future through the Economic Survey to give a boost to the Indian economy. Finance Minister Nirmala Sitharaman presented the Economic Survey for the year 2020-21 in Lok Sabha and Rajya Sabha today. This economic survey advocates a more active fiscal policy. It states that the government should adopt a counter-cyclical policy to speed up economic growth.
The Economic Survey states that the government should not worry too much about Fiscal Deficit for fast economic growth. Rather, to accelerate growth, the government should increase its spending further and the government should increase its capital expenditure, which will increase the revenue of the government in the next few years. It also states that the government should cut tax so that the common people have more money to spend, thereby increasing the demand for products and services.
Relax should remain on the front of Fiscal Deficit
This survey has dismissed the claim of the critics of the government that the government should adopt the Natural Fiscal Policy and control the fiscal deficit. The Economic Survey states that when the economy slows down or is in a state of economic crisis, the government should remain relaxed on the debt and Fiscal Deficit front. This survey states that a more active and counter-cyclical fiscal policy does not mean fiscal irresponsibility.