Advanced Search
MyIDEAS: Login

Fiscal Decentralization in Indian Federalism

Contents:

Author Info

  • M Govinda Rao

    (Institute for social and Economic Change)

Abstract

The paper analyzes fiscal decentralization in a three-tier federal framework in India. After a brief discussion on the evolution of Indian federalism and the description of the prevailing system, the paper brings out anomalies in assignments between centre and states and states and local bodies. Critical analysis of intergovernmental transfers brings out the efficiency and equity implications of their transfers. The paper has some important findings. The inclusion of the third tier in the analysis brings out the true picture of fiscal deficits. Analysis shows that structural deficits in the country are due to fiscal mismanagement at both central and state levels. Despite the semblance of a hard budget constraint at the State level, the states have found ways to soften the constraints. Although the transfer system has equalizing impact, it has disincentives for fiscal management. Constitutional sanction has enabled the institution of local governments, but they do not play a major role in providing public services and much less in raising resources.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.isec.ac.in/Fiscal_decentralization_in_Indian_federalism.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for Social and Economic Change, Bangalore in its series Working Papers with number 98.

as in new window
Length: 38 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:sch:wpaper:98

Contact details of provider:
Postal: Nagarabhavi, Bangalore - 560072
Phone: +91-80-23215468
Fax: +91-80-23217008
Email:
Web page: http://www.isec.ac.in/
More information through EDIRC

Related research

Keywords: Public Finance; Fiscal Decentralization;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. M Devendra Babu, 2009. "Fiscal Empowerment of Panchayats in India: Real or Rhetoric?," Working Papers 229, Institute for Social and Economic Change, Bangalore.
  2. P K Mohanty & B M Mishra & Rajan Goyal & P D Jeromi, 2008. "Municipal Finance in India:An Assessment," Working Papers id:1357, eSocialSciences.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sch:wpaper:98. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (B B Chand).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.