Irsad, Malik, Mohd Yousuf and Jafar, Syed Hasan creator text Economic & Political Weekly monographic eng

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61(20), May 16, 2026: p.36-44 The relationship between fiscal rules, fiscal performance, and economic growth in India and its sub-national economies from 1991 to 2022 is examined. Over the period observed, the fiscal performance index increased from 50.5 to 60.5, while state-level fiscal performance remained stable, deteriorating during the COVID-19 recession, and improving thereafter. The findings reveal that economic growth contributes more significantly to fiscal performance at the national level than at the state level. Fiscal rule has a positive impact on fiscal discipline for India; however, at the state level, it has a negative coefficient, suggesting that stricter rules might constrain flexibility, leading to adverse effects on fiscal performance as well as economic growth.- Reproduced https://www.epw.in/journal/2026/20/insight/do-fiscal-rules-promote-fiscal-performance-and.html Economic & Political Weekly 260612