On 1 February 2025, India’s finance minister Nirmala Sitharaman presented her record eighth budget in Parliament. Her budgets have usually been characterized by three signature features: transparency, fiscal prudence and high capital expenditure (capex). However, in the 2024-25 and 2025-26 budgets, there is a visible tension between the latter two. Capex growth has been drastically…
India currently has a fiscal law that expects the Union government to keep its annual fiscal deficit below 3% of gross domestic product (GDP). So government borrowing in any given year cannot exceed that limit, to rein in profligate budgeting. However, a rigid limit on government borrowing can be counterproductive in some situations. For example,…
It underscores the government’s commitment to fostering a robust economic environment that facilitates growth across various sectors, ensuring India remains resilient amid global uncertainties. It also provides a detailed road-map that highlights nine major priorities over the next five years, focusing on the poor, women, youth and farmers. These priorities aim to uplift all sections…
