Published Paper Details:

This study examines the impact of fiscal policy on inflation and economic growth in India from 2000 to 2024, using quantitative data from published sources like the Reserve Bank of India (RBI) and Ministry of Finance. Fiscal policy, encompassing government spending and taxation, plays a critical role in shaping macroeconomic outcomes. The research analyzes how fiscal deficits, public expenditure, and tax revenues influence inflation rates and GDP growth. Employing econometric models, including "Vector Autoregression (VAR)" and Granger causality tests, the study finds that expansionary fiscal policies, while boosting short-term growth, often exacerbate inflationary pressures. Conversely, fiscal consolidation tends to stabilize inflation but may dampen growth temporarily. The analysis reveals a bidirectional causality between fiscal deficits and inflation, with weaker evidence for growth. Data from RBI's annual reports and World Bank indicators highlight India's fiscal challenges, including high debt-to-GDP ratios. The study underscores the need for balanced fiscal strategies to achieve sustainable growth without triggering inflation. Policy implications include prioritizing productive expenditure and improving tax compliance. This research contributes to understanding fiscal policy dynamics in a developing economy, offering insights for policymakers aiming to navigate India's complex macroeconomic landscape.