Context: Union budget for 2021-22 targets fiscal deficits of 6.8% which is acceptable, and even a bigger deficit is feasible with a high Gross Domestic Product (GDP) growth target.
Arguments against large fiscal deficits:
Argument favouring large fiscal deficits: For reviving from Covid-19 economic shocks.
Ways to ensure deficit financing will not harm the economy:
Conclusion: Additional financing should be expended well for a successful deficit financing strategy. It is high time for India to be bold and invest in creating conditions that will stimulate further economic activity.