News > Modi's weak mandate may prompt policy focus shift to welfare spending

Modi's weak mandate may prompt policy focus shift to welfare spending

If Prime Minister Narendra Modi secures a third term, but with a weaker mandate for the BJP, the fiscal policy might shift towards enhancing welfare measures to boost consumption. The government's fiscal prudence has often meant stepping back from direct measures to spur consumption, with notable exceptions like the free food grain scheme, which will cost Rs 11.80 lakh crore over five years starting January 1, 2024.