Economic Survey 2020-2021 proposes debt-financed fiscal spending to be the driver of growth. Examine the basis of this argument and the risks involved. 10 marks

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https://www.thehindu.com/opinion/op-ed/a-changing-fiscal-framework/article33916726.ece
In the intro, mention India’s fiscal deficit for FY2020-21.
In the body, mention Oliver Blanchard’s argument for the higher multiplier effect of government spending in the recession and condition for sustainability of the government debt-difference between growth rate and interest rate of the debt to e positive.
Conclude by mentioning the contradiction between government policy and the fiscal regime it is running.

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