About this work
India’s budget offered an immediate spending boost after a limited fiscal response to the pandemic in 2020. Jonathan Fortun and coauthors expected that support to strengthen growth in the first quarter of 2021, followed by a broadly neutral budgetary contribution. Their assessment links the wider medium term deficit target to debt stabilization, while stressing that a high debt burden would continue to constrain room for fiscal policy.
Abstract
India’s budget offered an immediate spending boost after a limited fiscal response to the pandemic in 2020. Jonathan Fortun and coauthors expected that support to strengthen growth in the first quarter of 2021, followed by a broadly neutral budgetary contribution. Their assessment links the wider medium term deficit target to debt stabilization, while stressing that a high debt burden would continue to constrain room for fiscal policy.
Cite this work
Jonathan Fortun, Yuanliu Hu, Sergi Lanau (2021). Economic Views: India’s Budget and Fiscal Vulnerability. Institute of International Finance.