Period | Fiscal Deficit Overview |
---|---|
1947-1970s | Relatively modest fiscal deficits characterised this period, showcasing cautious spending. |
1980s | Fiscal deficits increased due to rising expenditures, notably subsidies and welfare programs. |
1990s | Alarming levels of fiscal deficits led to a balance of payments crisis and triggered economic reforms. |
Late 1990s - Early 2000s | Fiscal discipline improved, and deficits were contained within manageable levels. |
2008 Global Financial Crisis | Stimulus measures and increased spending widened the fiscal deficit in response to the economic slowdown. |
Post-2008 | Efforts were made to reduce the deficit gradually, but challenges persisted, including subsidy burdens and weak tax revenues. |
2017 | Implementing the Goods and Services Tax (GST) aimed to enhance revenue collection. |
2020 COVID-19 Pandemic | Significant spending measures to support the economy led to a significant expansion of the fiscal deficit. |