-TelanganaToday.in
Follow the Keynesian policy and go for larger fiscal deficit that puts more purchasing power in people’s hands
Finance Minister Nirmala Sitharaman will present her second Budget on February 1 amid a slowdown in GDP growth and an increase in the rate of unemployment. Even supply-side economists are acknowledging that the current situation is because of the problem of aggregate demand. The demand-side economists, anyway, have been arguing for expansionary fiscal policy. In this context, if the government reduces expenditure to GDP ratio, it would be taking an absolutely wrong fiscal policy approach.
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