Indian economy needs govt spending even if fiscal deficit widens: Official


India's current fragile economic conditions call for government action to boost spending in the coming financial year, allowing for a widening in the fiscal deficit to bolster growth, a senior official familiar with government policymaking said. The government should invoke the escape clause under the Fiscal Responsibility and Budget Management Act but stay within the prescribed 0.

5 per cent wiggle room allowed in an extraordinary year under the guidelines, said the official, who spoke on condition on anonymity. "Going.

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