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Budget 2026–27 and coping with the emerging economic challenge

By: Mundle, Sudipto and Sahu, Ajaya.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 61(14), Apr 4, 2026: p.16-20. In: Economic & Political WeeklySummary: Stable fiscal ratios, high growth and low inflation portray India as a haven of stability and calm in a very turbulent world. However, this may well be a calm before the storm. The stable fiscal ratios notwithstanding, fiscal space is shrinking, which handicaps the country in coping with the economic shock, which is expected in the wake of the Iran war and Iran’s chokehold on supplies through the Strait of Hormuz. An expansionary fiscal policy, combined with a tight monetary policy stance, can moderate the impact of the shock, but a period of slower growth and elevated inflation seems unavoidable. –Reproduced https://www.epw.in/journal/2026/14/budget-2026-27/budget-2026-27-and-coping-emerging-economic.html
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Articles Articles Indian Institute of Public Administration
61(14), Apr 4, 2026: p.16-20. Available AR138726

Stable fiscal ratios, high growth and low inflation portray India as a haven of stability and calm in a very turbulent world. However, this may well be a calm before the storm. The stable fiscal ratios notwithstanding, fiscal space is shrinking, which handicaps the country in coping with the economic shock, which is expected in the wake of the Iran war and Iran’s chokehold on supplies through the Strait of Hormuz. An expansionary fiscal policy, combined with a tight monetary policy stance, can moderate the impact of the shock, but a period of slower growth and elevated inflation seems unavoidable. –Reproduced

https://www.epw.in/journal/2026/14/budget-2026-27/budget-2026-27-and-coping-emerging-economic.html

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