Question

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Answer 1

The Indian economy typically slows down ahead of Lok Sabha elections even as government intervention turns opportunistic, a Mint analysis has found.

A study of key economic variables over the past 30 years shows that economic activity lost pace significantly every time there was a general election. Government spending went up in an average election year, which tended to fuel inflation rather than spur growth, suggesting that the extra public expenditure ahead of polls was largely wasteful.

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