The State of State Government Finances in India

N. Bajpai and J.D. Sachs

Working Papers from Harvard - Institute for International Development

Abstract: The financial condition of the state governments in India has been a cause for concern for sometime now. Over the years, the consolidated financial position of the state governments has shown a marked deterioration in some of their major deficit indicators. One of the fundamental weaknesses of state government finances in India can be attributed to the increases in non- developmental expenditure, particularly the revenue component of the non-developmental expenditure, and interest payments as a proportion of revenue receipts. Structural imbalances in the form of large revenue deficits, rising interest burden, increasing distortions in the pattern of expenditure, and very slow growing non-tax revenues are major problem areas for state finances.

Keywords: FINANCIAL; POLICY (search for similar items in EconPapers)
JEL-codes: H72 H77 (search for similar items in EconPapers)
Pages: 35 pages
Date: 1999
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Citations: View citations in EconPapers (3)

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