India should not let fiscal deficit worries stop it from spending more to fight Covid-19 crisis, an adviser to Prime Minister Narendra Modi said.
“If you have to spend money because you have to save both lives and livelihoods then that’s what you have to do, “ Rajiv kumar, vice chairman of the federal government ‘s think-tank Niti Aayog, said in an interview. “Issues about fiscal space could be on the backburner.”
The International Monetary Fund too is of the view that nations should continue to spend to support health-care systems and households until Covid-19 spread is controlled globally and the economic recovery strengthens.
Excessive borrowing could fuel inflation and crowd out private investment. At least one of those concerns is overdone, according to Mr. Kumar.
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