Finance Commission calls for 6.5% fiscal deficit for capex
pre-market1 source ↓written by the desknot a recommendation
- emphasizes the need
- 16th Finance Commission
- from both
- 6.5% combined fiscal deficit
- its deficit
- 3.5%
- annually
- 3%
The 16th Finance Commission emphasizes the need for a 6.5% combined fiscal deficit from both the Centre and states to support extensive capital expenditure over the next two decades. The Centre aims to reduce its deficit to 3.5%, while states will maintain 3% annually, excluding the impact of interest-free loans for capital projects. This strategy is crucial for achieving world-class infrastructure development.
Not investment advice. For informational purposes only.