India's Future: Smart Spending, Not Just More Spending, Drives Growth

• India aims for "smart public spending" over mere quantity, focusing on efficient allocation to boost economic growth and social equality.
• IMF studies show smart spending can increase output by up to 11% in emerging markets, without raising overall spending limits.
• India's strategy includes reallocating 1% of GDP from discretionary spending to productive investments like infrastructure, education, and R&D.
• Significant increase in capital expenditure (CapEx) from Rs 3.36 trillion (FY20) to Rs 10.19 trillion (FY25), with a multiplier effect of 2.5-3 times.
• Balancing growth-oriented CapEx with fiscal consolidation, India reduced its fiscal deficit from 9.2% (FY21) to 4.8% (FY25).

Why It Matters: Smart public spending, efficient allocation, and fiscal prudence are crucial for India's sustained growth and Viksit Bharat vision.