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1. When growth is strong, it makes sense to improve the nation's finances and reduce debt as a % of GDP. The counterpoint of expansionary
1. When growth is strong, it makes sense to improve the nation's finances and reduce debt as a % of GDP. The counterpoint of expansionary fiscal policy in a recession is that there need to be automatic stabilizers the other way. However, the concern is that making budget surpluses a top economic priority could mean we take decisions which are not in the best interest of the economy. The value of budget surpluses is not that great, but they do come at an opportunity cost of taking money from elsewhere in the economy. A surplus, which sounds so alluring during an economic crisis, is not so great "When government are running a surplus, the government is taking more out of the economy than it is putting in. That is probably not a good thing under current and long run settings. Also, at certain times in the economy, there is a strong case for government borrowing to finance public sector investment. We need investment in training, housing and transport to help long-term economic growth. It would be very short-sighted to target fiscal goals. 2. By Increasing rupee value (1 Rupee = 1 Dollar - Pr os) Buying Goods will be cheaper
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