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Estimation of fiscal multipliers for India

Bibhuti Ranjan Mishra & Bharadwaja Sastry Adiraju

International Journal of Economic Policy and Emerging Economies2025https://doi.org/10.1504/ijepee.2025.145416article
ABDC C
Weight
0.37

What the paper says

The multiplier remains an effective tool to evaluate the effects of the changes in government expenditure. In this paper, we estimate five multipliers using the SVAR framework. We report impact multipliers in the range 0.23 to 1.85 and cumulative multipliers in the range 0.45 to 5.45. Our results are in line with empirical literature and have important implications for the Government of India's fiscal stance. We point out that since capital expenditure multipliers are greater than revenue expenditure multipliers, the government must rationalise revenue expenditure and spend more on building productive capital. Secondly, we recommend that capital budgets should be optimised towards components that provide the most productive effects. Finally, in light of the coronavirus-induced economic crisis, we recommend caution to ensure that greater revenue expenditure does not crowd out private investment and that a calibrated and coordinated monetary policy will be essential in tackling this issue.

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https://doi.org/https://doi.org/10.1504/ijepee.2025.145416

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@article{bibhuti2025,
  title        = {{Estimation of fiscal multipliers for India}},
  author       = {Bibhuti Ranjan Mishra & Bharadwaja Sastry Adiraju},
  journal      = {International Journal of Economic Policy and Emerging Economies},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1504/ijepee.2025.145416},
}

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Estimation of fiscal multipliers for India

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.