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Ecological Fiscal Transfers and State-Level Budgetary Spending in India: Analyzing the Flypaper Effects

In: India’s Contemporary Macroeconomic Themes

Author

Listed:
  • Amandeep Kaur

    (National Institute of Public Finance and Policy)

  • Ranjan Kumar Mohanty

    (Xavier Institute of Management, XIM University)

  • Lekha Chakraborty

    (National Institute of Public Finance and Policy)

  • Divy Rangan

    (The Convergence Foundation)

Abstract

This paper examines the empirical evidence of flypaper effects on the ecological fiscal spending in India. Using the panel data models, we analyze whether the intergovernmental fiscal transfers, or the states’ own income determine the expenditure commitments on ecology at the State level. The econometric results show that the intergovernmental fiscal transfers rather than the states’ own income determines ecological expenditure at subnational levels in India. The results hold, when the models are controlled for ecological outcomes and demographic variables.

Suggested Citation

  • Amandeep Kaur & Ranjan Kumar Mohanty & Lekha Chakraborty & Divy Rangan, 2023. "Ecological Fiscal Transfers and State-Level Budgetary Spending in India: Analyzing the Flypaper Effects," India Studies in Business and Economics, in: D. K. Srivastava & K. R. Shanmugam (ed.), India’s Contemporary Macroeconomic Themes, chapter 0, pages 421-435, Springer.
    • Handle: RePEc:spr:isbchp:978-981-99-5728-6_18
    DOI: 10.1007/978-981-99-5728-6_18
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