India’s Economy Likely To Grow By 6.5% In FY25, Says EY Report

D K Srivastava, Chief Policy Advisor, EY India, said, “The proposed revisions to the Fiscal Responsibility and Budget Management Act are essential for enabling India to pursue sustainable growth while maintaining fiscal prudence. The updated framework would help eliminate government dissaving, increase investment, and create a more resilient economy that is well-equipped to meet the challenges of the future. The changes will not only address current challenges but also pave the way for India’s transition to a developed economy, achieving its Viksit Bharat aspirations.” Economy Watch suggests that a major reform is required in the FRBM Act to ensure fiscal responsibility while supporting India’s ambitious growth goals. One of the recommendations is to reinstate the revenue account balance as a key target for both the central and state governments.