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The Economic Times

Economy / The Economic Times

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Indias state election results are out. Is cash inflow next? Heres a warning

Indias state elections: New election wins in Indian states bring populist promises that could strain finances. Economists warn of wider fiscal deficits as states commit to cash handouts and welfare benefits. This trend may impact spending on infrastructure and jobs. The fiscal deficit ceiling of 3% is now seen as a floor. This spending race is expected to continue ahead of future polls.

5 May 2026 1:24 pm