Central governments show fiscal prudence in Lok Sabha election years

Emkay Research study shows fiscal deficit trend much healthier than in FY19

Contrary to popular perception, central governments in the last 25 years have mostly shown fiscal prudence in election years, with lower fiscal deficits than in the preceding three years, an analysis of past elections by Emkay Research showed.
 

“Our study of the last five election cycles indicates that in general, barring the global financial crisis year, central governments have been consolidating in the year just preceding an election,” the report titled “Evolving Politics of Economics in India,” said. 
 

In FY24, the report said the fiscal deficit trend was much healthier than in FY19. FY19 saw the fiscal deficit already exceeding