Sustainable fiscal policy for India

India s economy has grown rapidly since the beginning of the 1990s despite a large and growing fiscal deficit and rising public levels relative to output. This book explores whether India has found a way to reconcile sustained expansionary fiscal policies with relative macroeconomic stability. Drawing on the views of some of the most knowledgeable experts on macroeconomics and fiscal policy, with wide ranging experience in both other emerging market countries as well as in India, it seeks to understand the strengths and weaknesses of India s policies in managing its fiscal position. This volume argues why India does not face serious macroeconomic problems in spite of large fiscal imbalances but at the same time incurring hidden costs on the economy in terms of foregone potential for even higher economic growth. It warns that time is running out for India to address these fiscal imbalances in a way that does not result in enhanced vulnerability to macroeconomic crisis.