Montek Singh Ahluwalia: India's High Fiscal Deficit Hampers Growth Potential

Montek Singh Ahluwalia, former Deputy Chairman of the Planning Commission, raised concerns about India's high fiscal deficit, noting that it is significantly higher than other developing nations. He emphasized the need for a clear roadmap to reduce the fiscal deficit at both the central and state levels to foster private investment and achieve economic growth. Ahluwalia also highlighted the fiscal burden caused by state governments' disguised borrowing through public sector enterprises and called for a review of state expenditures, particularly politically motivated subsidies, to reallocate funds to more productive areas.