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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. Jacobs,Rowena & Smith,Peter C. & Street,Andrew, 2006. "Measuring Efficiency in Health Care," Cambridge Books, Cambridge University Press, number 9780521851442, April.
    2. 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.
    3. Shah, Anwar, 2005. "A framework for evaluating alternate institutional arrangements for fiscal equalization transfers," Policy Research Working Paper Series 3785, The World Bank.
    4. 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.
    5. Peter S. Heller, 2005. "Understanding Fiscal Space," IMF Policy Discussion Papers 05/4, International Monetary Fund.
    6. 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.
    7. Gordon Tullock, 1959. "Problems of Majority Voting," Journal of Political Economy, University of Chicago Press, vol. 67, pages 571.
    8. Seabright, Paul, 1994. "Accountability and Decentralization in Government: An Incomplete Contracts Model," CEPR Discussion Papers 889, C.E.P.R. Discussion Papers.
    9. 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.
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