Fiscal Policy and Union Budget: Trends and Impacts

<p><strong><em><span>Abstract</span></em></strong></p> <p><em><span>Fiscal policy plays a crucial role in steering the economic direction of a country, especially in developing economies like India. The Union Budget is the principal tool through which fiscal policy is executed. This paper examines the trends in India’s fiscal policy through Union Budgets from 2014 to 2024, with a focus on revenue generation, expenditure priorities, fiscal deficit trends, and macroeconomic impacts. Using quantitative data and qualitative policy analysis, this study highlights the evolving nature of India's fiscal policy and assesses its role in promoting economic growth, equity, and macroeconomic stability.</span></em></p> <p><em><span>The Union Budget serves as the principal mechanism through which the government implements fiscal strategies, balancing expenditure, revenue generation, and deficit management. This study examines the trends in India’s fiscal policy from 2014 to 2024, focusing on revenue and expenditure patterns, fiscal deficit dynamics, and their macroeconomic impacts. Using secondary data from government sources, supported by mathematical tools and policy analysis, the paper highlights the role of fiscal policy in responding to economic crises such as the COVID-19 pandemic, while also promoting long-term goals of inclusive growth, infrastructure development, and fiscal consolidation. The findings underscore that India’s fiscal framework has demonstrated resilience, though challenges remain in debt management, subsidy rationalization, and revenue mobilization. The study emphasizes the need for outcome-oriented budgeting and efficient public expenditure to strengthen India’s economic trajectory.</span></em></p>