India has seen an unprecedented growth during the recession with the International monetary fund speculating a growth of around 6% in 2009. The growth has basically been sparked by the kind of reforms and investments the government plans to do in the FY 2009. The latest news in investing $350000 in Bharat Nirman, increasing the effort to up Infrastructure facilities, eliminating tax exemptions and moving towards a uniform duty structure that eliminates inverted duties, lifting the ban on agricultural futures all if carried forward and implemented, will take the sensex soaring above 20000. The problem that is inturn getting worse and is decreasing the economic stability of the nation is the raising fiscal deficit. The fiscal deficit now accounts for 5.2% of the GDP which means that whatever the revenue that is generated by the domestic companies in India, 5.2% of it now would go in meeting out the deficit. The borrowings from the international market has lead to such a huge deficit which is still going to last till 2012, according to the finance minister. However, whether the government should create a balance between both of them and start looking at ways in reducing the fiscal deficit or stop worrying about it,is a topic that needs some attention....
