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Introducing Expenditure Quality in Intergovernmental Transfers: A Triple-E Framework

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  • Mala Lalvani
  • Brijesh Pazhayathodi
  • Kumudini Hajra
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    Abstract

    The present study has sought to introduce, conceptualise and operationalise a scheme for integrating the ‘quality’ dimension of public spending into the devolution scheme of intergovernmental transfers by the Finance Commission. The study illustrates a scheme of inter-se distribution from an incentive fund, which we would like to label as a “Quality Control Fund†(QCF). Portions of this fund could be kept aside to reward States for their performance on the three aspects of expenditure quality, viz., Expenditure Adequacy, Effectiveness and Efficiency. [DRG Study Series No. 30]

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    Bibliographic Info

    Paper provided by eSocialSciences in its series Working Papers with number id:2189.

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    Date of creation: Aug 2009
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    Handle: RePEc:ess:wpaper:id:2189

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    Related research

    Keywords: Expenditure; Fiscal Responsibility; fiscal; Merit Goods; finance; adequacy; effectiveness; quality; public spending;

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    1. Shah, Anwar, 2005. "A framework for evaluating alternate institutional arrangements for fiscal equalization transfers," Policy Research Working Paper Series 3785, The World Bank.
    2. Jacobs,Rowena & Smith,Peter C. & Street,Andrew, 2006. "Measuring Efficiency in Health Care," Cambridge Books, Cambridge University Press, number 9780521851442.
    3. Peter S. Heller, 2005. "Understanding Fiscal Space," IMF Policy Discussion Papers 05/4, International Monetary Fund.
    4. Gordon Tullock, 1959. "Problems of Majority Voting," Journal of Political Economy, University of Chicago Press, vol. 67, pages 571.
    5. Ritva Reinikka & Jakob Svensson, 2004. "Local Capture: Evidence From a Central Government Transfer Program in Uganda," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 678-704, May.
    6. Zsuzsanna Lonti & Matt Woods, 2008. "Towards Government at a Glance: Identification of Core Data and Issues related to Public Sector Efficiency," OECD Working Papers on Public Governance 7, OECD Publishing.
    7. Seabright, Paul, 1996. "Accountability and decentralisation in government: An incomplete contracts model," European Economic Review, Elsevier, vol. 40(1), pages 61-89, January.
    8. Anwar Shah, 1999. "Governing for Results in a Globalised and Localised World," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 385-431.
    9. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-64, August.
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