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6d ago

One Nation One Election Could Boost GDP by 1.5 Points, Economists Tell Panel

Synchronized polls would drive up capital expenditure at the cost of higher deficits.

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The investment ratio against the gross fixed capital formation also goes up by 0.5 percentage point, reflecting greater investment activity, especially private and foreign, the presentation said. (HT PHOTO)

Overview

  • NK Singh and Prachi Mishra told the Joint Parliamentary Committee that synchronized national and state elections could lift real GDP growth by 1.5 percentage points, adding about ₹4.5 lakh crore in 2023-24 terms.
  • They projected that combined polls would widen the fiscal deficit by roughly 1.3 percentage points due to increased post-election spending.
  • The analysis shows the capital-to-revenue expenditure ratio would rise by 5.4 points after simultaneous elections, indicating a shift toward infrastructure and long-term growth investments.
  • Gross fixed capital formation, a measure of investment activity, could increase by 0.5 percentage points as private and foreign investor confidence strengthens under synchronized polls.
  • The experts warned that uninterrupted elections since 1986 have disrupted manufacturing, construction, tourism and healthcare and caused primary school enrollment to dip around staggered polls.