The Impact of India’s National Budgeting Process on Economic Growth:A Post-Liberalization Analysis

This study examines the impact of India’s domestic expenditure policies on economic growth after 1991 trade liberalization. The study adopts a quantitative approach and analyzes data from Union Budget records (1991-2023), Reserve Bank of India records and international data repositories. Key variables include GDP growth rates, allocation of funds in the economy (infrastructure, education, health, defense and agriculture) and structure of revenue and capital expenditure. Use statistical tools such as correlation and regression analysis to identify trends and relationships. The results show that there is a positive relationship between fiscal expenditure and GDP growth, with capital expenditure having a more positive impact than revenue expenditure. The study concludes that strategic allocation of finance, particularly in the area of infrastructure and social development, plays a significant role in supporting economic growth. Policy recommendations include increasing capital expenditure and aligning fiscal expenditure with the Sustainable Development Goals. This study provides valuable insights to policy makers and stakeholders to improve the efficiency of budgeting process in India.