Fiscal Policy cyclicality in South Asian economies
- Radhika Pandey & Ila Patnaik
- May 2019
- National Institute of Public Finance and Policy (NIPFP)
- India
This is an analyses the cyclical nature of fiscal policy in South Asian economies. Drawing on recent literature, it assesses whether these economies have graduated to a counter-cyclical fiscal policy in the recent period. It is found that fiscal policy is procyclical in most of South Asian economies. The findings have implications for macrostabilisation policies in these countries and warrant a rethink of the fiscal policy framework.
