The Indian economy typically slows down ahead of Lok Sabha elections. 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. Investors and businessmen postpone key decisions till a new government is formed, and wait to gauge what the future policy environment will be before launching major projects. Government spending rises in election years although that affects inflation more than real economic activity.