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Budgetary Advocacy and Public Finance Management for North-Eastern Region in India

Author

Listed:
  • Shrabani Mukherjee

    (Associate Professor, Economics, Shiv Nadar University, Chennai)

  • Vivek Jadhav

    (Ph.D. Scholar, Madras School of Economics, Chennai)

  • Debdulal Thakur

    (Senior Research Fellow, LEAD at KREA University)

Abstract

Democracy across the world has witnessed the evolution of the electoral This paper analyses the budgetary effectiveness of the northeast states in India by exploring the causality between realised gap in budget estimates with states’ degree of self-reliance, socio-economic and political constancy for a decade period, 2006-07 to 2015-16. There has been a trend in the gap between budgetary estimates. This paper constructs fractionalisation index, polarisation index, effective number of party index to judge the role of the central assistance in the standpoint of fiscal issues and governance accountability at the sub-national level. The panel ordered logistic model claims that the political concentration, ethnic diversity, state’s own revenue capacity play an important role in determining the ineptitude of the states in fiscal management. The provision of states' expenditure tends to be inconclusive with high ethnic diversity or polarization for multiple decision making units which affects the growth pace of the state. The paper claims that the adverse impact is more vibrant in case of planned expenditure which is considered as key to long run development for the states.

Suggested Citation

  • Shrabani Mukherjee & Vivek Jadhav & Debdulal Thakur, 2022. "Budgetary Advocacy and Public Finance Management for North-Eastern Region in India," Working Papers 2022-224, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2022-224
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Public Financial Management; Political Federalism; Fractionalization; Polarization; Ethnic Diversity.;
    All these keywords.

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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