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The Political Economy of India's Fiscal Federal System and its Reform

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M. Govinda Rao
Nirvikar Singh

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Abstract

This article examines recent and potential reforms in India's fiscal federal system. We summarize key federal institutions in India, including tax and expenditure assignments, and mechanisms for Center-state transfers. We discuss the institutional process by which reforms can and do take place, including the role of academics, political influences, and especially institutions such as the Finance Commission. In contrast to the past, recent commissions have played a greater role in articulating an agenda for fiscal federal reform, which then proceeds through political bargaining. This change has taken place in the context of, and been influenced by, broader economic reform in India. Copyright 2007, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/publius/pjl014
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Article provided by Oxford University Press in its journal Publius: The Journal of Federalism.

Volume (Year): 37 (2007)
Issue (Month): 1 (Winter)
Pages: 26-44
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Handle: RePEc:oup:publus:v:37:y:2007:i:1:p:26-44

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dixit, Avinash & Londregan, John, 1998. "Fiscal federalism and redistributive politics," Journal of Public Economics, Elsevier, vol. 68(2), pages 153-180, May. [Downloadable!] (restricted)
  2. Rangarajan, C. & Srivastava, D.K., 2004. "Fiscal transfer in Australia: Review and relevance to India," Working Papers 04/20, National Institute of Public Finance and Policy. [Downloadable!]
  3. Nirvikar Singh & T.N. Srinivasan, 2004. "Indian Federalism, Economic Reform and Globalization," Public Economics 0412007, EconWPA. [Downloadable!]
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  1. Singh, Nirvikar, 2007. "The Dynamics of Reform of India’s Federal System," MPRA Paper 2282, University Library of Munich, Germany. [Downloadable!]
  2. Singh, Nirvikar, 2007. "Fiscal Decentralization in China and India: Competitive, Cooperative or Market Preserving Federalism?," MPRA Paper 1705, University Library of Munich, Germany. [Downloadable!]
  3. Singh, Nirvikar & Srinivasan, T.N., 2006. "Federalism and economic development in India:An assessment," MPRA Paper 1273, University Library of Munich, Germany. [Downloadable!]
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