New Delhi [India], It is clear that the government and corporates maintain a cautious stance on capital expenditure during the election months, Bank of Baroda said in a report. A study conducted by economist Janhvi Prabhakar found various sources in the last election cycle. Attention has been given to macroeconomic factors. Back in 2019 and how they looked in the current calendar year, the focus was on the months in which elections are specifically scheduled, the April-May period "It seems that the government has taken a cautious stance on capital expenditure during the elections This company "A cautious approach is observed towards the company's investment announcements as well as to foreign investors," the report noted as part of its findings. , the economist said, is a capital expenditure, or capex. During the election months (April-May), out of the total capital expenditure target of Rs 3.3 lakh crore in the Budget for FY2020, only 14.1 per cent of the capital expenditure was used for the elections. Month. This was lower than the shares seen in the last two years. “It is possible to conclude that the ongoing elections may have an impact on government capital expenditure as some decisions may be postponed due to the ongoing elections.Economist Prabhakar said it would be interesting to see how this plays out in 2024 but indicators such as inflation, debt, currency, bond yields and the stock market have not shown any significant trend in past elections, especially during the voting months. It will be interesting to see whether there will be any such exogenous shocks to these variables this time,” the economist said In the coming six weeks from April 19 to June 1, India will go through its 18th general election, with the Lok Sabha elections spanning over a period of 44 days. There will be seven phases for the exam and the results will be declared by June 4. In 2019, the elections were held during April and May and the results were declared on 23 May. As for inflation, in 2019 it started rising after July and peaked in December, I was stable for the April-May period for the current year. Bank of Baroda economist said he expects inflation to remain at current levels with the possibility of some moderation during the election months. Although retail inflation in India is at the RBI's comfortable level of 2-6 per cent, this is not ideal. Is above 4 percent. landscape.In March, it stood at 4.85 percent. Talking about the stock market, Sensex had registered a slight gain in April 2019, however, this gain ended in May 2019. The pattern worsened again over the next two months. Hence, no clear pattern emerged on the stock market front. So far in 2024, the domestic market has registered steady growth.