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The Burden of Government Debt in the Indian States: Implications for the MDG Poverty Target

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  • Indranil Dutta

Abstract

In this paper we explore what impact, if any, government debts have on achieving the Millennium Development Goals for the Indian states. To fulfill the goals, national governments, especially in the developing world, have to undertake major investments in the social sector; but how much they will really be able to do so will depend on the conditions of their finances. For the Indian states we find that government investment in the social sector is extremely important to reduce poverty, but the government's debt burden is actually stopping several states from attaining the MDG targets.

Suggested Citation

  • Indranil Dutta, 2007. "The Burden of Government Debt in the Indian States: Implications for the MDG Poverty Target," WIDER Working Paper Series RP2007-14, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2007-14
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