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Government warns global shocks strain fiscal management
The government has told a parliamentary finance panel that global pressures are making fiscal management harder, as the West Asia crisis drives up fertiliser and fuel bills. Higher subsidies are expected to…
The Story in Brief
The government has told a parliamentary finance panel that global pressures are making fiscal management harder, as the West Asia crisis drives up fertiliser and fuel bills. Higher subsidies are expected to increase expenditure, particularly revenue spending. The Department of Economic Affairs said committed costs such as salaries, subsidies and interest payments leave the Centre and states with less room for productive investment. Officials also warned that stagnant capital expenditure could affect future growth. At the same time, the government said it would keep investing in infrastructure and other assets while maintaining its fiscal glide path, or planned path towards tighter fiscal control.
The Indian Opinion
The lazy narrative that subsidies alone are wrecking public finances misses the weight of salaries and interest payments. The opposite claim, that fiscal restraint means abandoning infrastructure, is also unsupported. The government’s test is practical: can it absorb higher fuel and fertiliser costs while keeping capital spending from stagnating and staying on its promised fiscal path?
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
