Fiscal rules and debt dynamics in India

Advait Moharir

Macroeconomics and Finance in Emerging Market Economies, 2022, vol. 15, issue 1, 23-46

Abstract: Using an accounting framework, I examine the evolution of national and sub-national public debt in India from 1981 to 2017, with reference to the FRBM Review Committee Report, which stipulates the debt targets at 60% and 20%, respectively. I find that a larger share of debt movement is explained by changes in interest rate, growth and inflation, than by accumulation of new debt, for both national and sub-national debt. Simulations show that a strict perusal of the debt targets will force the government to run surpluses, while relaxing the targets generates fiscal space up to 4% of the GDP.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/17520843.2020.1796733 (text/html)
Access to full text is restricted to subscribers.

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:taf:macfem:v:15:y:2022:i:1:p:23-46

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/REME20

DOI: 10.1080/17520843.2020.1796733

Access Statistics for this article

Macroeconomics and Finance in Emerging Market Economies is currently edited by Subrata Sarkar and Ashima Goyal

More articles in Macroeconomics and Finance in Emerging Market Economies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().