EY India Report: Strategic Fiscal Reforms Essential for Viksit Bharat Vision

A new EY India report underscores the importance of increased government spending and robust fiscal strategies to achieve India's Viksit Bharat vision. It recommends enhancing tax revenues, revamping fiscal frameworks, and boosting government expenditure to align with developed country standards.

The latest report from EY India highlights the crucial need for elevated government spending to support the Viksit Bharat vision. According to EY India's Economy Watch, the government should implement strategies focused on increasing tax revenues, unlocking untapped tax resources, and adhering to fiscal prudence.

The November edition of EY India's Economy Watch stresses the importance of steady economic growth and a sound fiscal strategy as key drivers for achieving this transformation. The report outlines four critical areas: expanding government expenditure, restructuring the FRBM framework, reforming fiscal transfers, and re-adjusting expenditure priorities.

To achieve developed economy status, the report argues for maintaining a sustained GDP growth of over 7% and a solid fiscal framework. It calls for raising the tax-GDP ratio to 25%, boosting non-tax revenue, and reducing the fiscal deficit. D.K. Srivastava, Chief Policy Advisor at EY India, notes that with focused policy efforts, the aspiration of becoming a developed economy by FY2048 is attainable.

(With inputs from agencies.)