Union Budget 2020 | ‘Fiscal deficit breached by a huge margin, won’t support tightening it’: Nobel laureate Abhijit Banerjee
Mumbai | Jagran News Desk: Ahead of presentation of Union Budget 2020, Nobel laureate Abhijit Banerjee on Saturday said that he wouldn’t support fiscal tightening now as it had already been breached by a ‘huge margin’.
“Fiscal deficit has been breached by a huge margin already. In that sense, I don't think that it's a big deal to breach it more. I wouldn't be supporting fiscal tightening right now,” Banerjee said.
According to official data, India’s fiscal deficit hit 114.8 per cent of 2019-20 Budget estimate at Rs 8.07 lakh crore at the end of November 2019. The government had estimated the fiscal deficit for the current financial year at Rs 7.03 lakh crore, aiming to restrict the deficit at 3.3 per cent of the gross domestic product (GDP).
Addressing an event in Mumbai, Banerjee also spoke about centre's reported plan to cut school education budget by Rs 3000 crore and said that federal government provides very little of the funding in education.
“Education is a state subject and it is mostly funded by state. Cutting Rs 3000 crore is like a drop in the ocean,” he said.
Banerjee’s remarks came days ahead of the first full time of the Modi government 2.0 for the financial year 2020-21 which will be presented by Nirmala Sitharaman on February 1.
In the budget 2020, the government is expected to announce about key measure to revive the economy which is struggling against a slowdown and of job losses. Centre has taken a slew of measures, including a sharp cut in corporate tax to address the slowdown in the economy, these steps are yet to yield significant results.
The government recently released the GDP growth data which showed India's GDP growth slowing to an 11-year low of 5 per cent in the current fiscal due to poor showing by manufacturing and construction sectors.
Posted By: Aalok Sensharma