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Fiscal Deficit and Economic Growth in an Economy - Term Paper Example

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By taking consideration of the increasing global competition, it can be easily predicted about the necessity of huge financial investments with the prime intention of maintaining a steady state of economic prosperity. …
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Fiscal Deficit and Economic Growth in an Economy
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India is a member nation of BRICS and the country is identified to be a developing economy. The country holds a global standing with respect to ‘gross national product’ (GDP) and ‘purchasing power parity’ (PPP). Multiple ups and down are identified within the economic structure of the country. However, despite of all the tediousness within its economic structure, the nation has projected remarkable survival instincts and has eventually displayed an appreciable response against its economic and fiscal issues. Such situations often results in deteriorating the rate of economic development as a result of the financial incapability of the government in context to spending more on the economic developmental procedures. Irrespective of all these economic achievements, multiple economists in the present scenario have still questioned regarding the fiscal stability of this nation, which in the practical scenario can be considered to be on the verge of collapsing (Kumar, 2014). The increased provision of government subsidies within public distribution services and sectors can be considered as the prime factors that has crippled the revenue generating capabilities of India. Understanding the gravity of the destabilizing economic and fiscal situation, the present government has shown its active participation towards the implementation of appropriate fiscal modifications within the New Year’s budget. ...Download file to see next pagesRead More
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