IDEAS home Printed from https://ideas.repec.org/a/icf/icfjpf/v05y2007i3p16-36.html
   My bibliography  Save this article

Kerala’s Fiscal Scene: Gathering Clouds of Crisis?

Author

Listed:
  • R Mohan

Abstract

The study examines the major indicators of Kerala’s finances and finds signs of a crisis. They are: (a) revenue deficits increasing as a proportion of Gross State Domestic Product (GSDP); (b) falling own tax buoyancy; (c) declining share of Central taxes and grants; and (d) rising debt-GSDP ratio. Capital outlay has fallen and revenue deficit occupies a substantial portion of fiscal deficit. But statistical analysis shows that revenue receipts and revenue expenditure cointegrate and move towards equilibrium in the long run. The debt-GSDP ratio has also not become theoretically unsustainable, because nominal growth rate of the economy is higher than interest rates on debt. The study concludes that appropriate policy initiatives can prevent the indications of crisis from gaining momentum.

Suggested Citation

  • R Mohan, 2007. "Kerala’s Fiscal Scene: Gathering Clouds of Crisis?," The IUP Journal of Public Finance, IUP Publications, vol. 0(3), pages 16-36, August.
    • Handle: RePEc:icf:icfjpf:v:05:y:2007:i:3:p:16-36
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjpf:v:05:y:2007:i:3:p:16-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G R K Murty (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.