Another interesting point which came out of the presentations by Wieland, Corsetti, Lane, Faia and others, is that the current environment has been conducive to a renewed and very rich debate about the determinants and the likely size of fiscal multipliers, about which there is still much uncertainty.
However, the correction in revenue account was largely on account of higher transfers from the Centre, since own tax revenue continued to remain around 2.3 per cent of GSDP. From the perspective of growth and employment, a key concern is the decline in capital outlay in terms of GSDP (Table 3).