A country is considered economically balanced citing the fiscal discipline affecting and setting standard for the analytical purview. India being a struggling nation to prove itself economically stable, has been drastically and positively affected by the political powers imbibed in the past four years. The NDA government has always had a vision for economic growth, governance and reforms and has made significant fronts on that grounds constituting the economic indicators.
The data recently released by the RBI, asserts that the gross fiscal deficit of the nation has reduced to 3.3% this year which streaks 2.4% less as compared to year 2013-14 under the directive of the UPA Government. Revenue Deficit around the same period measured to 3.18% as the country was in the middle of many corruption scams.
A fiscal deficit is regarded by some as a positive economic event, when in fact it is illogical to consider it. Fiscal Deficit marks an indication of the total borrowings needed by the government. The quantum space between the government’s total revenue and total expenditure coequals financial fiscal deficit.
Generally fiscal deficit takes place either due to revenue deficit or a major hike in capital expenditure. A deficit is usually financed through borrowing from either the central bank of the country or raising money from capital markets by issuing different instruments like treasury bills and bonds.
Peeping back to the year 2003-04, when NDA was in rule under the percept of Vajpayee, the percentile of the fiscal deficit measured 4.57%. Although higher than that counted today, it was considerably lower than that in 2013-14, it being 5.7%. The gross value additions amidst the constant prices in area, industry or sector of an economy in the presidency of UPA and NDA observe a mass difference of Rs 29125.06 billions, it being Rs 90636.49 billions in 2013-14 and Rs 119761.55 by 2017-18.
Significant procedures laid by the government accomplishing the tax reform, insolvency and bankruptcy procedures and Foreign Direct Investment liberalization are incredibly impressive. When Narendra Modi led Government took over, it had many challenges on the economic front as it inherited an economy with some serious concerns from the UPA Government.
Although implementation of the GST has been less than ideal, given the inordinate complexity of the tax regime, the passage of the reform was a crucial step in improving ease of business and removing trade barriers. GDP Growth Rate has also marked higher when the NDA Government has adopted various fiscal consolidation measures for improving the economy resulting in the overall economic development.