India has a federal system of governance with both the state or provincial and the Central governments responsible for the development of the nation as a whole. Policies at the Central as well as state levels influence the state level variations in economic conditions in turn. It is in this context, this paper examines whether governments in India within a federal framework have been able to foster development equitably across its states. Overall, the results in this paper indicate that Government in India within a federal framework has mechanisms that foster development equitably across its states, particularly through health and education expenditures aimed at improving human capital development. However, the slowly rising disparities in economic services across states warrant the Central and state governments’ attention.
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Paper provided by Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number
2009-05.
Find related papers by JEL classification: E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
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