The Challenge
India’s public finance system moves trillions of rupees each year, yet much of it remains input-driven – borrowings tied to fiscal needs, transfers fragmented and weakly linked to performance, and expenditure focused on utilisation rather than results. While innovations like sovereign green bonds, and performance incentives in government schemes offer proof of concept, outcomes-linked incentives today cover only a fraction of fiscal flows. Without a coherent framework, India risks missing the chance to stretch every rupee further, reduce borrowing costs, and drive accountability for social and climate results.
Blended Finance in Action
TBFC, in partnership with a global philanthropy, is developing a Roadmap for Embedding Outcomes Orientation in India’s Fiscal Architecture. The initiative will identify high-potential opportunities, suggest practical pathways to mainstream outcomes-linked incentives across the public finance ecosystem, and outline the systemic changes required to see them through. By aligning fund mobilisation and disbursals with measurable outcomes, the Roadmap seeks to unlock new pools of capital, enhance fiscal efficiency, and position India as a global leader in outcomes-based public finance reform.
