N R Bhanumurthy

Economic Survey 2025-26 underscores India's macro stability, reform-led growth, and fiscal discipline, while warning that weak state finances pose emerging risks

The forthcoming Budget could think of maintaining public capital expenditure at 3% so that domestic resources are available for private investments

The Survey, while underplaying the short-term outlook, takes a wider and long-term perspective on growth and presents a reform agenda in order to achieve the 2047 goal

The key change on the expenditure side is the focus on outcomes as well as satu­ration of beneficiaries

Economy-wide modelling while facing multiple exogenous shocks is clearly a task that is challenging and risky

The Survey forecast appears to be on a higher side, which could be aspirational and depends on the Budget proposals.

Having adopted flexible inflation targeting, macroeconomic consistency can be achieved through the adoption of flexible fiscal targets