Fiscal Decentralization and Development Outcomes in India: An Exploratory Analysis

Kaliappa Kalirajan () and Keijiro Otsuka ()

World Development, 2012, vol. 40, issue 8, 1511-1521

Abstract: This paper attempts to quantify the impact of fiscal decentralization in India on its social infrastructure and on rural development. Overall, the results in this paper indicate that Government of India within a federal framework has been fostering development equitably across its states, particularly through health and education expenditures aimed at improving human capital development. In this context, the importance of the two tier centre-states decentralization should be noted. However, the third tier of local governance, particularly the state-rural local bodies decentralization has been dismal and has not achieved significant results across states, which warrant the attention of the central and state governments.

Keywords: fiscal decentralization; development outcomes; Panchayati Raj; Asia; India (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:40:y:2012:i:8:p:1511-1521

DOI: 10.1016/j.worlddev.2012.04.005

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