Bihar Elections and Fiscal Discipline
The state of Bihar is heading to polls on November 6 and 11, initiating an important electoral cycle with elections in eleven more states to follow over the next two years. This period is marked by the usual pre-election promises and populist giveaways, which attract significant media attention.
Pre-Election Giveaways and Populist Promises
- The spectacle of pre-election giveaways and populist promises often captures headlines.
- There is a tendency of states to engage in competitive populism, offering significant financial doles to win public favor.
Fiscal Discipline Concerns
While such populist measures grab attention, a more critical issue is the decline in states' fiscal discipline.
- This trend is indicative of a broader sub-national fiscal drift within India's political economy.
- According to press reports, eight states have spent ₹67,928 crore over the past two years on pre-election doles.
Note: The above reflects personal views and does not necessarily align with the opinions of Business Standard or its newspaper.
