IDEAS home Printed from https://ideas.repec.org/a/icf/icfjpf/v05y2007i4p7-17.html
   My bibliography  Save this article

State-Level Fiscal Reform in India: Strategy and its Implications

Author

Listed:
  • A C K Nambiar

Abstract

Though fiscal reforms at the state level have been an important component of economic policy reforms, the finances of the states continued to deteriorate even in the 1990s. It was in this backdrop the Eleventh Finance Commission recommended a fiscal reform incentive scheme. The Twelfth Finance Commission too evolved schemes for fiscal correction of states. As required by now almost all the states have enacted the Fiscal Responsibility Bill. In the medium-term the objective is to contain the revenue deficit. Hence, serious efforts are being made by the states to redeem their fiscal situation. The paper attempts to review the progress, the strategy, and its implications. The results indicate that a secular trend in decline in the deficit is yet to emerge. So also the performance of states is widely at variance. Given the current tempo while a number of states will fulfill the target, others in all likelihood may fail to fulfill the target. So also the strategy of states appears to be ill-conceived. The revenue effort of the states cannot be said to be very impressive. On the expenditure side, the developmental outlay on plan and non-plan account has come to suffer, and this will have implications on the growth prospects of the states.

Suggested Citation

  • A C K Nambiar, 2007. "State-Level Fiscal Reform in India: Strategy and its Implications," The IUP Journal of Public Finance, IUP Publications, vol. 0(4), pages 7-17, November.
  • Handle: RePEc:icf:icfjpf:v:05:y:2007:i:4:p:7-17
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjpf:v:05:y:2007:i:4:p:7-17. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G R K Murty (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.