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Fiscal Performance of Special Category States in India: A Case Study of Tripura State Finance

Author

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  • Ajit Kumar Dash

    (Faculty of Management Studies, ICFAI University Tripura)

Abstract

Deteriorating fiscal health at both central and state level is one of the major concerns in India. In this context, to maintain fiscal discipline at the state level many measures have been adopted .The states have initiated fiscal reforms to bring fiscal discipline at the state level. Even the special category state which gets more grants than the general category states because of their special problems have enacted fiscal responsibility and budget management act to maintain fiscal discipline. With this background this study is an attempt to measure the fiscal performance of a special category state i.e., Tripura by evaluating its performance over the time period 1990-91 to 2009-10 to see whether the fiscal performance of this state is improving or not after implementing the fiscal reform program. The paper has developed a composite index known as Tripura Fiscal Performance Index (TFPI).It is observed that the fiscal performance as a whole is improving after implementing the FRBM Act. The year 2007-08 is the best fiscal performance year. However the state should maintain its fiscal discipline in terms of deficit management and own revenue augmentation to have sustainable long term financial stability.

Suggested Citation

  • Ajit Kumar Dash, 2011. "Fiscal Performance of Special Category States in India: A Case Study of Tripura State Finance," EuroEconomica, Danubius University of Galati, issue 29, pages 121-132, August.
    • Handle: RePEc:dug:journl:y:2011:i:29:p:121-132
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    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/988/824
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