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Fiscal Policies and Challenges in South Asia

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  • Raghbendra Jha

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Abstract

This paper presents a brief overview of the extant fiscal situation in South Asian countries. In particular, I emphasize low tax/GDP ratios and inelastic expenditure/GDP ratios which then lead to structurally entrenched fiscal deficits. The paper also reports on the sustainability of fiscal and current account deficits in the South Asian countries. Finally, the paper reports on some important issues in tax reform in South Asian counties. These include explaining and finding an antidote for low tax/GDP ratios and analyzing the scope for a VAT. Some general principles are enunciated but many of the required reforms have to be context specific.

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File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2010/WP2010_01.pdf
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Bibliographic Info

Paper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2010-01.

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Length: 16
Date of creation: 2010
Date of revision:
Handle: RePEc:pas:asarcc:2010-01

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Keywords: South Asia; Fiscal Policy; VAT;

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