Government borrowing is increasingly financing capital expenditure, boosting economic growth potential as effective capital spending surpasses the fiscal deficit. Conservative tax revenue growth, alongside non-tax receipts and asset sales, provides a cushion. While revenue spending is managed, a slight increase in the budget size is observed, with a focus on easing the debt burden towards targets.
RBI maintains optimism on growth, signals caution on inflation and FX volatility: Anubhuti Sahay
The Reserve Bank of India’s latest policy stance balances optimism on growth with caution on inflation and foreign exchange volatility. Analysts noted the central bank’s
April 8, 2026