CAUSE
One question. One truth.
“Why is India's fiscal deficit increasing?”
India's fiscal deficit is increasing primarily due to sustained high government expenditure on subsidies, welfare schemes, and infrastructure investments without commensurate revenue growth, driven by structural fiscal policy choices prioritizing social and economic development.
Medium confidenceStructural
CURRENT STATE
This factor is producing a widening gap between government revenues and expenditures, leading to a fiscal deficit that remains elevated despite efforts to improve tax collection. The persistent fiscal imbalance pressures borrowing requirements and constrains fiscal space for other priorities.
Have your own question?
Ask CAUSE →askcause.com