Goyal, Ashima creator text Economic & Political Weekly monographic eng

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61(14), Apr 4, 2026: p.62-66 The union government has reached the golden rule in its budget estimates, where it borrows only for investment, keeping expenditure at the maximum consistent, with debt falling towards sustainable levels. This builds buffers that make it feasible to smooth growth over time and keep real interest rates low, giving the space to absorb transient shocks, and design least cost responses to persistent shocks. Weakening of execution remains an issue. Inducing states to move towards the golden rule and empowering city governments may help remedy shortfalls in implementation.-Reproduced https://www.epw.in/journal/2026/14/budget-2026-27/indian-union-budget.html Economic & Political Weekly 260430