Fiscal Scenario of South Asian Countries: Implications for Economic Growth and Poverty Alleviation
AbstractSustainable economic growth and Poverty alleviation is a principal objective of the developing countries. The present study aims to historically review of fiscal policy and its consequences for the economic development of the four South Asian economies i.e. Pakistan, India, Sri Lanka and Bangladesh. Confined revenues and savings coupled with rising expenditures have caused situation of persistent fiscal deficit over the years. Coupled with that countries are also facing current account deficit. Resultantly, ‘Twin Deficit problem’ emerged, and it is filled by public deb. Consequently countries have to spend considerable portion of their GDP on interest payments of the loans. The need to service debt obligation is undermining economic performance and resulting in collapse of development planning. Because debt obligations and expenditure on debt servicing become a resource drain for already limited revenues and is halting economic growth and poverty reduction efforts.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29103.
Date of creation: 23 Nov 2010
Date of revision:
Fiscal Policy; Poverty; Economic growth;
Find related papers by JEL classification:
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
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- Talat Anwar, 2004. "Recent Macroeconomic Developments and Implications for Poverty and Employment in Pakistan: The Cost of Foreign Exchange Reserve Holdings in South Asia," ASARC Working Papers 2004-14, The Australian National University, Australia South Asia Research Centre.
- Nelson, Michael A & Singh, Ram D, 1994. "The Deficit-Growth Connection: Some Recent Evidence from Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 43(1), pages 167-91, October.
- Naqvi, Syed Nawab Haider, 2010. "Evolution of Development Policy: A Reinterpretation," OUP Catalogue, Oxford University Press, number 9780195477733.
- Lindauer, David L & Velenchik, Ann D, 1992. "Government Spending in Developing Countries: Trends, Causes, and Consequences," World Bank Research Observer, World Bank Group, vol. 7(1), pages 59-78, January.
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