Scope for stimulus despite fiscal consolidation target, says Ashima Goyal

It is necessary to take prompt action against the ongoing stress in the NBFC sector and its spillovers in the short term, says EAC-PM Ashima Goyal

The newly elected NDA government has its job cut out. With the economy possibly headed for a slowdown, there is a debate on whether the government needs to provide a stimulus. But then, there is a question of resources as well. Ashima Goyal, member of the prime minister’s Economic Advisory Council, tells Joydeep Ghosh that reversing the pre-election slowdown in government spending and frontloading the expenditure planned for the year can provide some relief. Edited excerpts:

During the last few months, there has been a lot of talk about a slowdown in the economy. Do you agree with this assessment?

Yes,