India’s National Food Security Bill: Its Budgetary Implications - Il Food Security Bill indiano: implicazioni di bilancio

Kartik Chandra Roy
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Kartik Chandra Roy: Department of Economics, The University of Queensland Brisbane, Queensland, Postal: Queensland, Brisbane St Lucia QLD 4072 Australia, http://www.uq.edu.au/

Economia Internazionale / International Economics, 2015, vol. 68, issue 2, 259-273

Abstract: In the light of comments made by economists and other commentators that India cannot afford an additional subsidy payment of Rs. 1247 Billion per year to implement the National Food Security Programme, in this paper an attempt has been made to examine the prudential character of India’s budgetary management to ascertain whether the budgetary management is robust enough to be able to absorb this additional cost to the exchequer without serious attendant monetary and fiscal consequences. Our examination of several features of India’s budgetary as well as of fiscal and monetary trends reveal that the share of Public Sector Borrowing Requirements (PSBR) in India’s GDP rose to a high of 5.2 percent in 2009-10. Measures needed to reduce the size of the current account deficit and that of the revenue deficit have been analysed in this paper. However, results of a number of tests to determine the robustness of India’s budgetary management make a very discouraging reading. - In considerazione dei commenti degli economisti e di altri addetti ai lavori circa l’impossibilità da parte dell’India di sostenere il pagamento di altri 1247 miliardi di rupie all’anno per l’applicazione del programma di sicurezza alimentare nazionale, questo studio individua un orientamento prudenziale nella gestione del bilancio indiano al fine di valutare se è possibile sopportare questo costo addizionale, senza creare serie conseguenze monetarie e fiscali. Abbiamo esaminato diverse caratteristiche del bilancio indiano e delle tendenze monetarie e fiscali e i risultati indicano che la quota del Public Sector Borrowing Requirements del PIL dell’India è salito al 5,2% nel periodo 2009-2010. Abbiamo anche analizzato le misure necessarie per ridurre il deficit di parte corrente e il deficit totale. I risultati dei numerosi test effettuati per accertare la robustezza della gestione di bilancio dell’India sono molto scoraggianti.

Keywords: National Food Security; Herd Mentality; Federal Budget; Revenue Deficit; Operational Deficit; Primary Balance; Real Interest Rate; Corporate Saving and Investment; Price Index; Subsidy and Prudentiality Test (search for similar items in EconPapers)
JEL-codes: O11 (search for similar items in EconPapers)
Date: 2015
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