EconPapers    
Economics at your fingertips  
 

INTERGOVERNMENTAL TRANSFER RULES, STATE FISCAL POLICY AND PERFORMANCE IN INDIA

Poulomi Roy () and Ajitava Raychaudhuri

Chapter 16 in New and Enduring Themes in Development Economics, 2009, pp 369-400 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractIn the federal economy like India intergovernmental transfer policies affect the state revenue and expenditure policies. This paper provides a theoretical model of determining optimal fiscal policy of the state governments in India. State's optimum fiscal policy depends on the rules applied by transferring agencies in transferring funds to the sub national governments. Three important criteria revenue effort, deficit financing and distance criterion are considered to estimate the weight assigned to these criteria. The comparison of actual state own revenue and expenditure policies with the optimum policy reveals that states are spending more than estimated optimum level and collecting revenues less than the optimum level. The deviation of actual values from the optimum values also give us some idea regarding to which direction the state governments should change its existing revenue and expenditure policies. The analysis is based on fourteen major states in India over the period 1980–2005.

Keywords: Development Economics; Happiness; Well-Being; Political Economy; Economic of Labour; Agricultural Economics (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789812839428_0016 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789812839428_0016 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9789812839428_0016

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2025-03-31
Handle: RePEc:wsi:wschap:9789812839428_0016