Understanding the fiscal implications of SEZs in India: An exploration in resource cost approach

Malini L. Tantri
Additional contact information
Malini L. Tantri: Institute for Social and Economic Change

No 288, Working Papers from Institute for Social and Economic Change, Bangalore

Abstract: This paper analyses the fiscal implications of SEZs on the government exchequer. Specifically, this paper proposes the following: (1) an argument that makes a case for the paramount importance of studying the fiscal dimensions of SEZs and (2) a framework for analysing the fiscal dimensions of SEZs. This framework is then employed to find the actual fiscal dimensions of SEZs in the country. The analysis is based on aggregating data collected from seven conventional SEZs and taking 1990-91 to 2007-08 as the reference period. The exercise reveals that the Government has spent huge sums of money to play the role of a trade facilitator and as a fiscal manager has lost considerable revenue. This, in turn, has affected both revenue and capital expenditure of the government’s budget. Given the magnitude of these costs, one cannot but raise questions about the actual contributions of these enclaves to the national fiscal health and the feasibility of relentlessly adopting measures that seeks to promote these zones across the nation.

Keywords: Economics; SEZ-India (search for similar items in EconPapers)
Pages: 25
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.isec.ac.in/WP%20288%20-%20Malini%20L%20T_6.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.isec.ac.in:443 (Bad file descriptor) (http://www.isec.ac.in/WP%20288%20-%20Malini%20L%20T_6.pdf [301 Moved Permanently]--> https://www.isec.ac.in/WP%20288%20-%20Malini%20L%20T_6.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sch:wpaper:288

Access Statistics for this paper

More papers in Working Papers from Institute for Social and Economic Change, Bangalore Contact information at EDIRC.
Bibliographic data for series maintained by B B Chand ().