Changing Dynamics in India's Fiscal Policy

DOI

10.2991/978-94-6463-872-1_17How to use a DOI?

Keywords

Fiscal Policy; Fiscal Consolidation; Capital Expenditure; Taxation Reforms; GST; Subsidy Rationalization; Green Fiscal Policy; Public Debt; State Finances

Abstract

The fiscal policy of India has undergone a notable transformation in recent decades, influenced by a changing combination of domestic economic reforms and international developments. This paper offers a thorough analysis of the evolving dynamics of fiscal policy, emphasizing key trends such as fiscal consolidation, the rollout of the Goods and Services Tax (GST), a focus on capital expenditure, the rationalization of subsidies, and an increasing focus on green fiscal initiatives. The adoption of digital tools like the Public Financial Management System (PFMS) and Direct Benefit Transfer (DBT) mechanisms has improved transparency, minimized leakages, and enhanced the overall efficiency of public finance management. These reforms have played a significant role in bolstering economic stability, promoting growth, and encouraging a more inclusive and accountable governance framework. Nevertheless, the paper also points out ongoing challenges, such as effective debt management, fair revenue mobilization, and the need to ensure social equity in fiscal allocations. The study assesses the effects of these policy measures through empirical evidence and policy analysis, providing insights into the trade-offs and synergies between growth, equity, and sustainability. By recognizing both advancements and policy shortcomings, the paper suggests strategic pathways for establishing a more resilient, transparent, and inclusive fiscal framework that can facilitate India's long-term development objectives.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Gudimallam Purushothama Chari
AU  - Venkata Purna Kumari Pechetty
PY  - 2025
DA  - 2025/11/04
TI  - Changing Dynamics in India's Fiscal Policy
BT  - Proceedings of the 2nd International Conference on Sustainable Business Practices and Innovative Models (ICSBPIM-2025)
PB  - Atlantis Press
SP  - 225
EP  - 235
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-872-1_17
DO  - 10.2991/978-94-6463-872-1_17
ID  - Chari2025
ER  -