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Budget 2022: Know the process of Fiscal Deficit which could cause Marco-economy instability in Union Budget 2022

By Lokmat English Desk | Updated: February 1, 2022 09:12 IST

The final Budget date of 2022 has been released, The finance minister Nirmala Sitaraman on February 1 at 11 ...

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The final Budget date of 2022 has been released, The finance minister Nirmala Sitaraman on February 1 at 11 am will release the Union Budget 2022. The first part of budget 2022 will start from January 31 and will continue till 11 February. 

This year's budget is so important for the country as the country facing so many economic losses due to the Covid surge and the budget too facing so many challenges this year, the team behind this year's budget had to face these challenges while preparing the Union Budget 2022. 

Know the process of Fiscal Deficit which could cause Marco-economy instability 

1) Inflation As Inflation is already elevated and the country facing huge losses only a high fiscal deficit can give it wind. 

2) High Fiscal This high fiscal deficit will definitely give the economy wind and will cause further widening of the current account deficit. 

3) High Current This high current account deficit can weaken the rupee and this will further add the inflation corner again. 

4) Role of RBI RBI will then be forced to raise rates to contain inflation and deficit. 

5) Rising of InterestThese rates could gain economic recovery. 

Tags: Budget 2022
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