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Introducing Expenditure Quality in Intergovernmental Transfers: A Triple-E Framework

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  • Mala Lalvani
  • Brijesh Pazhayathodi
  • Kumudini Hajra

Abstract

The present study has sought to introduce, conceptualise and operationalise a scheme for integrating the ‘quality’ dimension of public spending into the devolution scheme of intergovernmental transfers by the Finance Commission. The study illustrates a scheme of inter-se distribution from an incentive fund, which we would like to label as a “Quality Control Fund†(QCF). Portions of this fund could be kept aside to reward States for their performance on the three aspects of expenditure quality, viz., Expenditure Adequacy, Effectiveness and Efficiency. [DRG Study Series No. 30]

Suggested Citation

  • Mala Lalvani & Brijesh Pazhayathodi & Kumudini Hajra, 2009. "Introducing Expenditure Quality in Intergovernmental Transfers: A Triple-E Framework," Working Papers id:2189, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2189 Note: Institutional Papers
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    References listed on IDEAS

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    3. Gupta, Sanjeev & Verhoeven, Marijn, 2001. "The efficiency of government expenditure: experiences from Africa," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 433-467, May.
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    5. Ritva Reinikka & Jakob Svensson, 2004. "Local Capture: Evidence from a Central Government Transfer Program in Uganda," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 679-705.
    6. Gordon Tullock, 1959. "Problems of Majority Voting," Journal of Political Economy, University of Chicago Press, vol. 67, pages 571-571.
    7. Zsuzsanna Lonti & Matt Woods, 2008. "Towards Government at a Glance: Identification of Core Data and Issues related to Public Sector Efficiency," OECD Working Papers on Public Governance 7, OECD Publishing.
    8. Seabright, Paul, 1996. "Accountability and decentralisation in government: An incomplete contracts model," European Economic Review, Elsevier, vol. 40(1), pages 61-89, January.
    9. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-664, August.
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    Keywords

    Expenditure; Fiscal Responsibility; fiscal; Merit Goods; finance; adequacy; effectiveness; quality; public spending;

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