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Fiscal Consolidation Ex-post the Escape Clause: A Call for "Excessive Deficit Procedure"

Author

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  • Chakraborty, Lekha

    (National Institute of Public Finance and Policy)

Abstract

Launching an "excessive deficit procedure" in India is inevitable for growth revival. This is crucial especially when there is considerable ambiguity about why the "escape clause" was invoked in the Union Budget 2020 - whether to meet the shortfall in tax revenue emanating from the unanticipated fiscal outcomes of structural reforms or to boost the capital formation in the economy.

Suggested Citation

  • Chakraborty, Lekha, 2020. "Fiscal Consolidation Ex-post the Escape Clause: A Call for "Excessive Deficit Procedure"," Working Papers 20/299, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:20/299
    Note: Working Paper 299, 2020
    as

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    File URL: https://www.nipfp.org.in/media/medialibrary/2020/03/wp_299_2020.pdf
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    References listed on IDEAS

    as
    1. Bahal, Girish & Raissi, Mehdi & Tulin, Volodymyr, 2018. "Crowding-out or crowding-in? Public and private investment in India," World Development, Elsevier, vol. 109(C), pages 323-333.
    2. Ranjan Kumar Mohanty & N. R. Bhanumurthy, 2021. "Revisiting the role of fiscal policy in determining interest rate in India," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 26(2), pages 293-318, April.
    3. Kaur, Amandeep & Chakraborty, Lekha, 2020. "Climate Change-responsive Public Expenditure in India: An Empirical Analysis," Working Papers 20/298, National Institute of Public Finance and Policy.
    4. Rangarajan, C., 2020. "The New Monetary Policy Framework - What it Means," Working Papers 20/297, National Institute of Public Finance and Policy.
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    Cited by:

    1. Chakraborty, Lekha & Thomas, Emmanuel, 2020. "COVID-19 and Macroeconomic Uncertainty: Fiscal and Monetary Policy Response," Working Papers 20/302, National Institute of Public Finance and Policy.
    2. Mukherjee, Sacchidananda, 2020. "Performance Assessment of Indian GST: State-level Analysis of Compliance Gap and Revenue Growth," Working Papers 20/301, National Institute of Public Finance and Policy.

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