Populist monetary policy is total damage to democracy

- Confusion of economics: Dhawal Mehta

- Fiscal deficit will reach 6.4 percent of GDP at the end of the financial year

The fiscal deficit of the Government of India has crossed the limit. The financial year of 2022-2023 will end on 31st March 2023 when India's fiscal deficit (fiscal deficit) which is the total revenue of the government and the government's expenditure. Shows the (negative) difference between the total expenses incurred during the year. Deficit means the deficit the government has to borrow to meet the deficit which the government pays so much interest for its irresponsibility that a large part of our total budget is used to pay the interest on the debt. Hence, the government does not have enough money for its welfare schemes like education, health, providing tap water, repairing roads, etc. A government does not always become bankrupt. Because it has a very valuable power to pay off debt and that is the power to print new money. The use of this power is not innocent, if it is used beyond its limits, the rate of inflation will increase and hence the poor people will be exploited. Thus, the method of raising new money to meet the fiscal deficit is a double-edged sword because the poor and middle class end up having to pay for the cost of keeping the people happy and their votes unaffordable by the rising inflation rate.

India's fiscal deficit will reach 6.4 percent of its GDP at the end of the current year 2022-2023, which ends on March 31, 2023. 2022-2023 Fr. During the eight months of April to November of the year, the government's expenditure was 9.87 trillion rupees higher than its total revenue. In English, one trillion means one to 12 minda means one lakh crore rupees and the fiscal deficit of 9.87 trillion means 9 lakh 87 thousand crore rupees is considered very big even for a developing country like India. Be that as it may, a finance proposal of the central government has just been passed by the parliament and that is an additional amount of 3.25 lakh crores for subsidy on food and fertilizers which has been approved in the parliament, we can observe that the government of India will provide electricity to the farmers, Subsidies worth lakhs and billions of rupees on water and fertilizers then the agricultural sector grows at an annual rate of three to four percent and without the subsidy the agricultural sector of India would have been destroyed but our writers and other literati and other citizens consider the farmer as the power of the world. Farming, middle trades and menial jobs will make the adage and believe that village life is better than city life and that village people are gullible while city people are insidious and callous. 2021-2022 Fr. In the year ended 31 March 2022, the government's fiscal deficit narrowed slightly to 6.7 percent of GDP instead of its budget target of 6.9 percent, mainly due to an unexpected increase in the government's tax revenue. Although the government's direct tax revenue and especially the GST revenue is expected to be higher than expected, the fiscal deficit percentage is likely to remain unchanged. We do not know what percentage of GDP fiscal deficit will be decided by the budget of 1st February 2023 but one thing is certain that apart from the crores of rupees to be spent on MNREGA, free foodgrains to 80 crore people and subsidy on fertilizer will be done to get votes by keeping the people happy instead of actually helping the people. Many people think that there is. Expenditure on the above schemes, except for NREGA, does not seem to be conducive to a healthy democracy.