Search for Resources in a High Income State: A Study of State Finances of Sikkim

Pratap Jena (), Kausik K. Bhadra () and Satadru Sikdar ()
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Kausik K. Bhadra: National Institute of Public Finance and Policy
Satadru Sikdar: National Institute of Public Finance and POlicy

Working Papers from National Institute of Public Finance and Policy

Abstract: The paper examines the public financial management (PFM) of Sikkim focusing mainly on resources generation effort and budget management practices. We note that any deviation from the Central transfers creates fiscal stress as the State depends heavily on them to fund vast expanse of social and economic services and infrastructure. The sparse internal resources reduce flexibility to invest in the sectors where the State has inherent advantages. The search for resources to drive the development needs and create higher employment opportunities remain a major drag for the State. The paper looks at the possibilities of strengthening internal resources and improving the efficiency of public spending to ensure value for money. The fiscal stress faced by the State due to decline in Central assistance to the State plan should be considered as an opportunity to make an unbiased assessment of its fiscal capacity and development commitment.

Keywords: Budget management system; tax effort; public expenditure management; fiscal rules; expenditure restructuring (search for similar items in EconPapers)
JEL-codes: E62 H50 H61 H70 H71 H72 H76 (search for similar items in EconPapers)
Pages: 27
Date: 2016-05
New Economics Papers: this item is included in nep-mac
Note: Working Paper 170, 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Search for Resources in a High Income State: A Study of State Finances of Sikkim (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:npf:wpaper:16/170

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