Reduction in fiscal deficit is a challenge in the context of budget-making during the post-liberalization period especially for a country like India. Comment.
AI-driven tools can analyze data from sensors, satellites, and drones to monitor crop health, soil conditions, and weather patterns. This enables farmers to apply the right amount of water, fertilizers, and pesticides, reducing waste and increasing efficiency. AI systems can predict water needs baseRead more
AI-driven tools can analyze data from sensors, satellites, and drones to monitor crop health, soil conditions, and weather patterns. This enables farmers to apply the right amount of water, fertilizers, and pesticides, reducing waste and increasing efficiency.
AI systems can predict water needs based on weather forecasts and soil moisture levels, allowing for more efficient irrigation practices. This is particularly crucial in regions facing water scarcity, ensuring that crops receive adequate hydration without depleting water resources.
AI can identify early signs of diseases and pests in crops through image recognition and predictive analytics. Early detection allows for timely interventions, reducing crop loss and enhancing food security.
AI can assist in managing resources like seeds, fertilizers, and machinery, ensuring that farmers use their inputs effectively and reduce costs. This can make farming more economically viable, especially for smallholder farmers.
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Fiscal Deficit refers to the excess of government’s expenditure over its revenue. When the government’s expenditure is exceeding the revenue , it has to borrow money or sell the assets to finance the deficit. Formula Fiscal Deficit = Total Expenditure - Total receipts ( excluding the borrowings).Read more
Fiscal Deficit refers to the excess of government’s expenditure over its revenue. When the government’s expenditure is exceeding the revenue , it has to borrow money or sell the assets to finance the deficit.
Formula
Fiscal Deficit = Total Expenditure – Total receipts ( excluding the borrowings).Thus , Fiscal Deficit is nothing but borrowing required of the government.
During the economic crisis 1991, India saw the gross fiscal deficit as high as 12.7%. This forced India to adopt the LPG reforms 1991 , which eventually opened up the Indian market up to an extent. But the problem of high fiscal deficit continued in the post liberalisation era and was seen as a huge problem for the government’s public expenditure management. The reasons for such continued problem are the following:
To manage the fiscal deficit problem the government has launched various schemes such as:
India after post liberalisation has seen a reduction in the fiscal deficit though they are still high given the economy’s size and GDP structure. Borrowing by the government is nothing but a burden for the future generations. The Bimal Jalan Committee also suggested measures like rationalising subsidies and disinvestment as a measure to enhance expenditure management.
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