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

  • Mala Lalvani
  • Brijesh Pazhayathodi
  • Kumudini Hajra
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    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]

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    Paper provided by eSocialSciences in its series Working Papers with number id:2189.

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    Date of creation: Aug 2009
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    Handle: RePEc:ess:wpaper:id:2189
    Note: Institutional Papers
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    1. 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 642-64, August.
    2. 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.
    3. Shah, Anwar, 2005. "A framework for evaluating alternate institutional arrangements for fiscal equalization transfers," Policy Research Working Paper Series 3785, The World Bank.
    4. Gordon Tullock, 1959. "Problems of Majority Voting," Journal of Political Economy, University of Chicago Press, vol. 67, pages 571.
    5. Seabright, Paul, 1996. "Accountability and decentralisation in government: An incomplete contracts model," European Economic Review, Elsevier, vol. 40(1), pages 61-89, January.
    6. Ritva Reinikka & Jakob Svensson, 2004. "Local Capture: Evidence From a Central Government Transfer Program in Uganda," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 678-704, May.
    7. Peter S. Heller, 2005. "Understanding Fiscal Space," IMF Policy Discussion Papers 05/4, International Monetary Fund.
    8. repec:cup:cbooks:9780521851442 is not listed on IDEAS
    9. Anwar Shah, 1999. "Governing for Results in a Globalised and Localised World," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 385-431.
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