A focus on fiscal consolidation. But what next?

This is a draft version of the article published in Prajavani, which is accessible here.

In the upcoming fiscal the Karnataka government seeks to contain the Fiscal Deficit at 2.6% and the liabilities at 24.2% of the Gross State Domestic Product (GSDP). It aims to generate a revenue surplus of Rs 402 crores. All the above are well within the key fiscal and debt norms set under the Karnataka Fiscal Responsibility Act (KFRA), 2002. It is worth noting that the Revenue Deficit (RD) Revised Estimates (RE) for 2022-23 is 40% of the 2022-23 Budget Estimates (BE). It is primarily because of higher-than-expected revenue collection in 2022-23.

Read the full draft here.