Growth and public finance in Bihar

Das Gupta Chirashree

No 331, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper explores the causal links between the role of public finance and Bihar's growth and development in the last decade; and argues that these links are tenuous. Bihar's growth acceleration precedes the ‘policy reforms' in public finance based on the ‘good governance' agenda initiated since 2005-06. However, the constraints on sustaining efforts to close Bihar's development gap with the rest of India stems from the nature of the growth process in its regional, sectoral and social dimensions and the contradictory means and ends of the ‘policy reforms' in public finance. Together, this has not only prevented the economic growth to add to public coiffeurs of the state but also occluded the role of tax institutions.

Keywords: India; Corporate governance; Public finance; Local economy; Good Governance; Growth; Bihar; Political Economy (search for similar items in EconPapers)
JEL-codes: O20 O40 P41 P43 R11 R58 (search for similar items in EconPapers)
Date: 2012-03-01
New Economics Papers: this item is included in nep-cwa, nep-dev, nep-fdg and nep-pbe
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 331. 2012-03-01

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