Tag: Fiscal Consolidation

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Assess the implications of rising committed expenditure for India’s fiscal consolidation strategy. Examine the factors contributing to its growth. Outline measures to create greater fiscal space for developmental expenditure.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. Assess the implications of rising committed expenditure for India’s fiscal consolidation strategy. Examine the factors contributing to its growth. Outline measures to create greater fiscal space for developmental expenditure. (15 M) Difficulty Level: Difficult Reference: IE Why the question …

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Bring out the rationale for shifting fiscal policy focus from deficit targets to debt-to-GDP targeting. Evaluate the benefits and risks of such a framework for India.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q4. Bring out the rationale for shifting fiscal policy focus from deficit targets to debt-to-GDP targeting. Evaluate the benefits and risks of such a framework for India. (15 M) Difficulty Level: Medium Reference: IE Why the question Post-pandemic public debt …

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Debt today is a claim on future development, excessive debt is a claim on future distress. Examine the nature and trends of India’s public debt. Analyse the macroeconomic and social risks of increasing debt dependence.

Topic: Public Debt Q6. Debt today is a claim on future development, excessive debt is a claim on future distress. Examine the nature and trends of India’s public debt. Analyse the macroeconomic and social risks of increasing debt dependence. (15 M) Difficulty Level: Medium Reference: InsightsIAS Why the question Asked because India’s rising public debt …

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“GST reforms can stimulate consumption but risk weakening India’s fiscal consolidation”. Analyse this paradox. How can India balance short-term growth needs with long-term debt sustainability?

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Q5. “GST reforms can stimulate consumption but risk weakening India’s fiscal consolidation”. Analyse this paradox. How can India balance short-term growth needs with long-term debt sustainability? (15 M) Difficulty Level: Medium Reference: BS Why the question The recent GST 2.0 …

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S&P Global Upgrades India’s Sovereign Credit Rating to ‘BBB’

Source:  IT Context: S&P Global has upgraded India’s long-term unsolicited sovereign credit rating to ‘BBB’ from ‘BBB-’ after 18 years, citing strong economic resilience, fiscal consolidation, and stable policy outlook. About S&P Global Upgrades India’s Sovereign Credit Rating to ‘BBB’ After 18 Years: Credit Rating Agency – S&P Global: What it is? S&P Global Ratings …

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Explain the significance of India’s recent sovereign credit rating upgrade. Analyse its potential impact on foreign portfolio and direct investment inflows. Evaluate the long-term implications for the country’s external debt sustainability.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Q6. Explain the significance of India’s recent sovereign credit rating upgrade. Analyse its potential impact on foreign portfolio and direct investment inflows. Evaluate the long-term implications for the country’s external debt sustainability. (15 M) Difficulty Level: Medium Reference: TH Why …

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Maldives

Source:  TH Context: The International Monetary Fund (IMF) has issued a warning to the Maldives, emphasizing the urgent need for stronger fiscal consolidation to address the nation’s economic challenges. About the Maldives: Location: The Maldives is an archipelagic nation in the Indian Ocean, situated southwest of Sri Lanka and India, approximately 750 kilometres from the …

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Debt-to-GDP Ratio

Context: The Union Government has announced a shift from fiscal deficit to debt-to-GDP ratio as the primary fiscal anchor from FY 2026-27, targeting a 50±1% ratio by 2031. About Debt-to-GDP Ratio: It represents the proportion of a country’s total debt to its GDP, indicating economic stability and repayment capacity. Formula: What it represents? A higher …

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