Macroeconomic outlook and medium-term growth prospect after the budget

Ashima Goyal ()
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Ashima Goyal: Indira Gandhi Institute of Development Research

Indira Gandhi Institute of Development Research, Mumbai Working Papers from Indira Gandhi Institute of Development Research, Mumbai, India

Abstract: The slowdown and its reversal that followed government capital expenditure confirm that the quality of government expenditure creates stimulus even with overall fiscal consolidation. The latter as well as focus on improving vegetable supply chains in the budget enables monetary accommodation, which adds to the stimulus. So do mechanisms to multiply the impact of public funds and use more resources available in a growing economy to create incentives to bring states and private enterprise on board. But an eye needs to be kept on global volatility and compensatory domestic measures taken. Post-pandemic policy demonstrated this capacity. Given the many areas where states have to deliver, formal coordination frameworks may be necessary.

Keywords: Consolidation; stimuli; supply-side action; states; PPP; coordination; global volatility (search for similar items in EconPapers)
JEL-codes: D73 E62 H2 O11 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2025-03
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