India, Jan. 30 -- Everybody in India has demands of the budget. The range varies from structural reforms to specific reliefs such as taxes or a new scheme targeted at a poll-bound state. The government, of course, has its own priorities such as the fiscal glide path. In normal course, the balance is often decided by the larger political economy cycle; pre-election budgets tend to be more populist while prudence is prioritised when political concerns are not so pressing.

The Narendra Modi government prioritised prudence even in its pre-election budget before the 2024 Lok Sabha elections. The markets rewarded it - India received three ratings upgrades last year - but there is good reason to believe that the BJP did lose a bit of political ...