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A Standard Chartered analysis shows that since the 1990s, spending invariably rises in the two years leading up to a general election.
For example, the government during 1991-96 cut average real expenditure by an annualised 4% in the first two years of its term, but raised it by 3.6% in the final three years, Stanchart says.
The trajectory was similar for the governments in power from 1999-2004 (2.8% versus 9.0%) and 2004-09 (-1.9% versus 14%), the lender says.
The biggest welfare move expected in the current budget is the food security bill, which will likely raise annual food subsidies to Rs 1.12 lakh crore from Rs 75,000 crore now, almost a 50% hike, Stanchart predicts, quoting government estimates.
