The 5% question

When private consumption expenditure stagnates in an economy, the government must step in to compensate. This spurs investment and nudges the economy towards revival. But what happens when the government is not able to step into the breach because it is running an unsustainable fiscal deficit? The problem in crafting a policy response to the dismal GDP numbers for 2012-13, recording a 10-year low, lies here.

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