The government, which stepped up expenditure to battle economic slowdown after financial crisis, had to streamline and contain spending in key spending targets, Anoop Singh, director of Asia and Pacific at IMF, told reporters after interaction with the Reserve Bank of India.
The government has set target to bring down the fiscal deficit to 4.6 per cent of gross domestic product for 2011-12, down from the estimated 5.1 per cent for 2010-11.
In India, as in many other economies, fiscal policy can play a very helpful role in stabilising the economy and inflationary expectations.
The Budget for this year (2011-12), seeking further consolidation, would significantly help to address overheating
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