The Political Economy of Indiaâ€™s Federal System and its Reform
AbstractThis article examines the nature of Indiaâ€™s federal system, and recent and potential reforms in its structure and working. We summarize key federal institutions in India, focusing particularly on the mechanisms for Center-state transfers. These transfers are large, and are the major explicit method for dealing with inequalities across constituent units of the federation. We examine the evidence on how Indiaâ€™s political economy has affected the practical workings of the transfer mechanisms. This is followed by a consideration of actual and possible reforms in Indiaâ€™s federal institutions, including tax assignments and local government, and a discussion of how they might be implemented in a politically feasible manner.
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Bibliographic InfoPaper provided by Department of Economics, UC Santa Cruz in its series Santa Cruz Department of Economics, Working Paper Series with number qt8tt605xg.
Date of creation: 01 Apr 2004
Date of revision:
intergovernmental transfers; economic reform; federalism; regional inequalities;
Other versions of this item:
- Rao, M. Govinda & Singh, Nirvikar, 2004. "The Political Economy of Indiaâ€™s Federal System and its Reform," Santa Cruz Center for International Economics, Working Paper Series qt4gc7c4px, Center for International Economics, UC Santa Cruz.
- Rao, M. Govinda & Singh, Nirvikar, 2004. "The Political Economy of Indiaâ€™s Federal System and its Reform," Santa Cruz Department of Economics, Working Paper Series qt4gc7c4px, Department of Economics, UC Santa Cruz.
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