<h1>RBI Paper Calls for Fiscal Policy Reforms and Binding Framework to Enhance Resilience Against Business Cycles.</h1> The Reserve Bank of India's Working Paper highlights the need for reforms and a binding framework to enhance fiscal policy's resilience against business cycles. The paper critiques the traditional focus on headline fiscal balance, advocating for cyclically adjusted fiscal stances, as recommended by the IMF. It analyzes India's fiscal stance since 2000, noting an increase during the crisis period and a subsequent partial withdrawal of stimulus despite a positive output gap and rising inflation. While the fiscal stance remains expansionary post-2008-09, the fiscal impulse has decreased, signaling a positive trend. Further reforms are deemed necessary for stability.