Indian election pledges risk wider fiscal deficits, economists warn
Updated
Updated · Bloomberg · May 5
Indian election pledges risk wider fiscal deficits, economists warn
2 articles · Updated · Bloomberg · May 5
After state election wins this week, Tamil Nadu and West Bengal featured costly promises including free gas cylinders, gold coins, cash support and expanded welfare benefits.
Economists say fulfilling these populist commitments could strain state finances by raising spending and widening budget deficits.
Actor-turned-politician C. Joseph Vijay's party became the largest in Tamil Nadu, while Prime Minister Narendra Modi's BJP campaigned on bigger cash transfers in West Bengal.
Can India's states afford their populist election promises without sacrificing future growth?
Has the 'freebie' model now become the only path to winning elections in India?
When handouts empty state coffers, which public services like healthcare get cut first?