Modi’s New Budget Shouldn’t Break the Bank
Even as foreign money pours into Indian bonds, the government should be wary of relaxing its disciplined fiscal approach.
Penny-pincher.
Photographer: Sergei Bobylyov/AFP/Getty Images
Things seem to be falling comfortably into place for Indian Prime Minister Narendra Modi. Yes, he lost seats in India’s recent general election — but he was, nevertheless, re-elected for a third term. Yes, he is dependent upon smaller allied parties for the first time in his political career. But those allies have been complaisant so far, and he has kept them out of major ministerial roles without any blowback.
That period of calm may be coming to an end, however. Next week, India will unveil its tax-and-spending plans for the ongoing financial year, which ends in March 2025 — and, according to Reuters, the allies’ bills will come due.