Size of Fiscal Multipliers for Major Indian States

Debi Prasad Bal (), Seba Mohanty () and Jayalaxmi Samal ()
Additional contact information
Debi Prasad Bal: BITS Pilani, Pilani Campus
Seba Mohanty: Kalinga Institute of Industrial Technology (KIIT) University
Jayalaxmi Samal: Kalinga Institute of Industrial Technology (KIIT) University

Journal of the Knowledge Economy, 2025, vol. 16, issue 5, No 42, 16754-16774

Abstract: Abstract The study aims to analyze the fiscal multipliers in Indian states and assess the effectiveness of present fiscal policies in supporting economic growth. We use annual data from 1980 to 2021. Using the structural VAR framework, this study establishes the relationship between GDP, aggregate expenditure, and tax revenues in Indian states. We classify Indian states into five regions: Northern, Southern, West and Central, Eastern, and Northeastern. Our research reveals that the amount of fiscal multipliers differs significantly among regions of Indian states. From a policy standpoint, this study argues that fiscal policy measures can be carefully planned and implemented to maximize their impact on economic activity and reach the required multiplier effects within different Indian states.

Keywords: Fiscal multiplier; GSDP; Aggregate expenditure; Tax revenue and SVAR (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-024-02511-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jknowl:v:16:y:2025:i:5:d:10.1007_s13132-024-02511-w

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-024-02511-w

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().