Algorithmic Fiscal Governance: AI-Enabled Public Financial Management Models for Achieving Viksit Bharat 2047 Targets

Abstract

The Viksit Bharat 2047 mission envisions India as a developed, inclusive, and globally competitive economy by its centenary of independence. Achieving this transformation requires a fundamental reconfiguration of public financial management (PFM) systems to enhance transparency, efficiency, fiscal discipline, and developmental impact. This study investigates the role of Artificial Intelligence (AI) in restructuring fiscal governance through algorithmic budgeting, predictive expenditure monitoring, fraud analytics, and real-time fiscal dashboards. Drawing upon a structured multi-state dataset (n = 312 fiscal administrators across 12 Indian states), supplemented with policy simulations and econometric modeling, the study evaluates the impact of AI-enabled fiscal tools on budget efficiency, revenue optimization, and leakages reduction. Multiple regression and structural equation modeling results indicate statistically significant improvements in fiscal transparency and budget utilization when AI-readiness exceeds threshold levels. The findings provide strategic, policy-oriented recommendations for embedding algorithmic governance into India’s fiscal architecture, thereby accelerating progress toward Viksit Bharat 2047 targets.