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The Dynamics of Reform of India’s Federal System

  • Singh, Nirvikar

This paper analyzes the process of reform of India’s federal system, with a focus on fiscal federalism. We first summarize the basic features of, and recent reforms in intergovernmental relations, including the role of political institutions, assignments of expenditure responsibility and revenue authority, the system of intergovernmental transfers, and institutions and mechanisms for government borrowing. We then discuss the institutional specifics of the reform process, to understand the dynamics of India’s federal system.

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Paper provided by Department of Economics, UC Santa Cruz in its series Santa Cruz Department of Economics, Working Paper Series with number qt9gh5p65t.

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Date of creation: 01 Mar 2007
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Handle: RePEc:cdl:ucscec:qt9gh5p65t
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  1. M.Govinda Rao & R.Kavita Rao, 2005. "Trends and Issues in Tax Policy and Reform in India," Working Papers id:243, eSocialSciences.
  2. Hehui Jin & Yingyi Qian & Barry Weingast, 1999. "Regional Decentralization and Fiscal Incentives: Federalism, Chinese Style," Working Papers 99013, Stanford University, Department of Economics.
  3. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
  4. Singh, Nirvikar, 2006. "Services-led industrialization in India: Assessment and lessons," MPRA Paper 1276, University Library of Munich, Germany.
  5. M. Govinda Rao & Pinaki Chakraborty, 2006. "Multilateral adjustment lending to states in India: Hastening fiscal correction or softening the budget constraint?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(3), pages 335-357.
  6. Qian, Yingyi & Roland, Gerard & Xu, Chenggang, 1999. "Why is China different from Eastern Europe? Perspectives from organization theory," European Economic Review, Elsevier, vol. 43(4-6), pages 1085-1094, April.
  7. Yingyi Qian & Gerard Roland, . "Federalism and the Soft Budget Constraint," Working Papers 97045, Stanford University, Department of Economics.
  8. Singh, Nirvikar & Srinivasan, T.N., 2006. "Federalism and economic development in India: An assessment," MPRA Paper 12452, University Library of Munich, Germany, revised Aug 2008.
  9. Singh, Nirvikar, 2007. "Fiscal Decentralization in China and India: Competitive, Cooperative or Market Preserving Federalism?," Santa Cruz Department of Economics, Working Paper Series qt76d8b4hm, Department of Economics, UC Santa Cruz.
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