Shumita Sharma Deveshwar

Director, India Research
+91 98718 22780

Nicolo Bandera

Economist, South East Asia Research
+44 20 7246 7889

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India: Why the government is likely to deviate from fiscal conservatism

Overview

At the 1 February presentation of the budget, Finance Minister Arun Jaitley is likely to ease his fiscal consolidation efforts in response to the hit to economic activity from demonetization. This note analyses why the economy will be unable to recover without higher government spending and why the room for manoeuvre is...

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