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India’s Revenue Deficit: A Challenge Ahead

  • Sivakumar, Marimuthu
  • Venkatesh, K
  • Ayyasamy, M

A developing country like India needs revenue surplus for the capital investment at the same time to pursue the economic development through demand expansion it needs expenditure especially in the social sectors such as health, education etc,. The recent global economic crisis also compels India to induce the expenditure for sustainability of the growth that it has achieved recently. This also needs enormous expenditure. On the other hand, current expenditure over current revenue of an economy makes revenue deficit. India’s Thirteenth Finance Commission’s one of the recommendation is that revenue deficit (as % of GDP) of the Centre needs to be progressively reduced and eliminated, followed by emergence of a revenue surplus by 2014-15 and a long term and permanent target for the Central Government should be to maintain, at the minimum, a zero revenue deficit. In the light of the above recommendation analyzing revenue deficit is imperative at this hour.

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File URL: http://mpra.ub.uni-muenchen.de/34696/1/MPRA_paper_34696.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34696.

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Date of creation: 14 Nov 2001
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Handle: RePEc:pra:mprapa:34696
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  1. Goyal, Ashima, 1999. "The Political Economy of the Revenue Deficit," MPRA Paper 29980, University Library of Munich, Germany.
  2. S. Narayan, 2009. "India," Chapters, in: The Political Economy of Trade Reform in Emerging Markets, chapter 7 Edward Elgar.
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