An Expert Explains: Why lower fiscal deficit isn’t always good news | Explained News, The Indian Express

An Expert Explains: Why lower fiscal deficit isn’t always good news | Explained News, The Indian Express

Written by N.R. Bhanumurthy |New Delhi |Updated: August 13, 2019 8:23:13 am

An Expert Explains: Why lower fiscal deficit isn’t always good news

Last week, RBI, the country’s central bank, cut repo rates by 35 basis points — the sharpest cut in nine years.

Unfortunately, the realisation that the economy is slowing down has come late.

There is growing concern about the slowdown in India’s economic growth. Last week, RBI, the country’s central bank, cut repo rates by 35 basis points — the sharpest cut in nine years. Udit Misra talked to N R Bhanumurthy, Professor at National Institute of Public Finance and Policy, to understand what is causing the slowdown and what policy measures are needed.