State budgets are spending more, putting in more money for development

Centre's expenditure on non-development categories like salaries, pensions payments has increased

Ishaan Gera | New Delhi
Last Updated at January 27, 2023 11:17 IST

In the early years of economics and, specifically, budgets, the dominant idea was fiscal conservatism. Budgets had to be balanced, and states could ill-afford to be profligate. The Great Depression changed that belief, with economist John Maynard Keynes arguing for deficit spending. Countries have since then adopted a middle path, expanding the government but within parameters for fiscal responsibility.

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