Identify the factors behind the high central and state fiscal deficit in India in recent times. Discuss its ramifications, and propose remedial measures.

How toppers approached it

From the one answer · about 290 words · 100% drew a diagram.

The toppers’ answers

• Apsara · AIR 192 · CSE 2024

More on Fiscal Policy and Budgeting

The Union and State budgets, fiscal deficit, FRBM, off-budget borrowing, counter-cyclical spending, devolution of revenue.

• What do you understand by Windfall tax? Do you think that windfall taxes can effectively redistribute wealth and promote greater economic equality?13 answers
• To what extent was the first National Monetization Pipeline (NMP) able to meet its objectives? What are the objectives of the new Asset Monetization Plan 2025–30 as announced in the recent 2025 Budget?11 answers
• The Reserve Bank of India’s surplus transfers offer the government much-needed fiscal space, yet they are not without challenges. Critically examine the implications of the RBI’s surplus transfers to the government.11 answers
• Highlighting the factors contributing to high fiscal deficit in India, discuss the potential consequences of such deficit and suggest measures to ensure fiscal consolidation.9 answers
• The recent push towards gender budgeting in the Government Budget reflects its importance for women empowerment. What are the recent initiatives towards gender budgeting in India and their importance?6 answers