IDEAS home Printed from https://ideas.repec.org/p/ess/wpaper/id12443.html

Economic Survey 2017: Volume I, Chapter 4: Reconciling Fiscal Federalism and Accountability: Is there a Low Equilibrium Trap?

Author

Listed:
  • Arun Jaitley

Abstract

Long-run institutional development co-evolves with fiscal accountability involving, perhaps requiring, a low and declining dependence on devolved resources and a high and rising share of direct taxes in total taxes. India’s second and third tiers of government tend to under-perform relative to these standards. The extent of tax and functional devolution to these tiers is one possible explanation. However, one key finding is that these tiers under-collect direct taxes even relative to the powers that they have. Whether this could lead to a low equilibrium trap of weak direct tax collection leading to inadequate service delivery provision, back to weak collection and accountability, needs to be actively discussed

Suggested Citation

  • Arun Jaitley, 2018. "Economic Survey 2017: Volume I, Chapter 4: Reconciling Fiscal Federalism and Accountability: Is there a Low Equilibrium Trap?," Working Papers id:12443, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12443
    Note: Institutional Papers
    as

    Download full text from publisher

    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=A2018131125052_20.pdf&fcategory=Articles&AId=12443&fref=repec
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rangarajan, C. & Srivastava, D. K., 2011. "Federalism and Fiscal Transfers in India," OUP Catalogue, Oxford University Press, number 9780198070986.
    2. Lant Pritchett, Yamini Aiyar, 2015. "Taxes: Price of Civilization or Tribute to Leviathan? - Working Paper 412," Working Papers 412, Center for Global Development.
    3. Lucie Gadenne, 2017. "Tax Me, but Spend Wisely? Sources of Public Finance and Government Accountability," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 274-314, January.
    4. Xavier Sala-i-Martin & Arvind Subramanian, 2013. "Addressing the Natural Resource Curse: An Illustration from Nigeria," Journal of African Economies, Centre for the Study of African Economies, vol. 22(4), pages 570-615, August.
    5. William Easterly, 2003. "Can Foreign Aid Buy Growth?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 23-48, Summer.
    6. Roy Bahl, 1999. "Implementation Rules For Fiscal Decentralization," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9901, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hiroyuki Hino & Atsushi Iimi, 2008. "Aid Effectiveness Revisited: Comparative Studies of Modalities of Aid to Asia and Africa," Discussion Paper Series 218, Research Institute for Economics & Business Administration, Kobe University.
    2. Ebi Bassey Okon & Nyong Saviour Okon, 2021. "Sources of State Revenue and State Effectiveness: The Nigerian Experience," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 111-122, January.
    3. Raymond J. March & Conrad Lyford & Benjamin Powell, 2017. "Causes and barriers to increases in economic freedom," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(1), pages 87-103, March.
    4. Gonzalez, Francisco M. & Neary, Hugh M., 2008. "Prosperity without conflict," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2170-2181, October.
    5. Sharri Byron, 2012. "Examining Foreign Aid Fungibility in Small Open Economies," Open Economies Review, Springer, vol. 23(4), pages 675-712, September.
    6. KAFANDO, Namalguebzanga, 2014. "L'industrialisation de l'Afrique: l'importance des facteurs structurels et du régime de change [The industrialization of Africa: the importance of structural factors and exchange rate regime]," MPRA Paper 68736, University Library of Munich, Germany.
    7. Torgler, Benno & Schneider, Friedrich & Schaltegger, Christoph A., 2007. "With or Against the People? The Impact of a Bottom-Up Approach on Tax Morale and the Shadow Economy," Berkeley Olin Program in Law & Economics, Working Paper Series qt6331x6vz, Berkeley Olin Program in Law & Economics.
    8. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, vol. 37(3), pages 281-295.
    9. Michael Watts, 2007. "Petro-Insurgency or Criminal Syndicate? Conflict & Violence in the Niger Delta," Review of African Political Economy, Taylor & Francis Journals, vol. 34(114), pages 637-660, December.
    10. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    11. Manof Shresta, 2002. "An Overview of Intergovernmental Fiscal Relations in Nepal," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0205, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    12. Brahmbhatt, Milan & Canuto, Otaviano & Vostroknutova, Ekaterina, 2010. "Dealing with Dutch Disease," World Bank - Economic Premise, The World Bank, issue 16, pages 1-7, June.
    13. Joya, Omar, 2015. "Growth and volatility in resource-rich countries: Does diversification help?," Structural Change and Economic Dynamics, Elsevier, vol. 35(C), pages 38-55.
    14. Hailu, Degol & Kipgen, Chinpihoi, 2017. "The Extractives Dependence Index (EDI)," Resources Policy, Elsevier, vol. 51(C), pages 251-264.
    15. Juliana Yael Milovich, 2018. "Does Aid Reduce Poverty?," OPHI Working Papers ophiwp122.pdf, Queen Elizabeth House, University of Oxford.
    16. Blessing Chiripanhura & Miguel Niño‐Zarazúa, 2015. "Aid, Political Business Cycles and Growth in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(8), pages 1387-1421, November.
    17. Abdih, Yasser & Chami, Ralph & Dagher, Jihad & Montiel, Peter, 2012. "Remittances and Institutions: Are Remittances a Curse?," World Development, Elsevier, vol. 40(4), pages 657-666.
    18. Timothy Azarchs & Tamar Khitarishvili, 2010. "Disaggregating the Resource Curse: Is the Curse More Difficult to Dispel in Oil States than in Mineral States?," Economics Working Paper Archive wp_641, Levy Economics Institute.
    19. Monica Beuran & Gaël Raballand & Julio Revilla, 2011. "Improving Aid Effectiveness in Aid-Dependent Countries: Lessons from Zambia," Documents de travail du Centre d'Economie de la Sorbonne 11040, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    20. Lauren E. Lopez, 2015. "Corruption And International Aid Allocation: A Complex Dance," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 35-61, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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:ess:wpaper:id:12443. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Padma Prakash (email available below). General contact details of provider: http://www.esocialsciences.org .

    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.