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Implementation of Fiscal Responsibility Legislation: A Study of Andhra Pradesh

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  • A Giridhar

Abstract

: The paper attempts to show that adherence to fiscal policy rules not only makes the state government move towards long-term fiscal sustainability, but also helps in reorienting its expenditure. It states that, in order to bring in balance between financial rectitude and welfare optimization it is essential that subsidies are channelized to targeted groups while monitoring important risks such as interest rate, expenditure on irrigation projects and scholarships. Further, it contends that institutional integrity and political will are critical in achieving the objectives set out in Fiscal Responsibility and Budget Management (FRBM) Act.

Suggested Citation

  • A Giridhar, 2009. "Implementation of Fiscal Responsibility Legislation: A Study of Andhra Pradesh," The IUP Journal of Applied Economics, IUP Publications, vol. 0(5-6), pages 190-218, September.
  • Handle: RePEc:icf:icfjae:v:08:y:2009:i:5-6:p:190-218
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