State Finances in India: A Case for Systemic Reform
This paper provides a self-contained overview of the present problems of state finances in India. It begins with an overview of historical evolution and current institutional structures, including economic, political, administrative and fiscal aspects of Indiaâ€™s federal system. The paper then reviews the current situation of Indiaâ€™s state government finances, going on to consider various developments that have shaped the statesâ€™ current fiscal situation, including the roles of national economic reform, the intergovernmental transfer system, tax reform, and local government reform. Policy options for reforming institutions of fiscal federalism system, borrowing mechanisms for the states, and governance are then discussed, with an emphasis on the principle that states should have appropriate incentives for fiscal discipline at the margins of revenue and expenditure.
|Date of creation:||01 Mar 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Santa Cruz, CA 95064|
Phone: (831) 459-2743
Fax: (831) 459-5077
Web page: http://www.escholarship.org/repec/ucscecon/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ricardo Hausmann & Catriona Purfield, 2004. "The Challenge of Fiscal Adjustment in a Democracy; The Case of India," IMF Working Papers 04/168, International Monetary Fund.
- Khemani, Stuti, 2002. "Federal politics and budget deficits: evidence from the states of India," Policy Research Working Paper Series 2915, The World Bank.
- Alan Richards & Nirvikar Singh, 2004. "Inter State Water Disputes in India: Institutions and Policies," Development and Comp Systems 0412010, EconWPA.
When requesting a correction, please mention this item's handle: RePEc:cdl:ucscec:qt8560h76z. 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: (Lisa Schiff)
If references are entirely missing, you can add them using this form.