INVISIBLE TRANSFERS IN INDIAN FEDERALISM

Govinda Rao

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: In most federal countries, design of intergovernmental transfers do not take into account violation of horizontal equity due to invisible transfers. Such subterranean transfers can be significant and they occur due to inter-state tax exportation arising from the levy of resource based (as against residence based) taxes and subsidised loans given to the states by the central government and the public sector banking system. This study estimates the volume of invisible transfers due to subsidised lending to states in India and demonstrates that such transfers have significantly reduced the progressivity of explicit intergovernmental transfers.

Date: 1998
Note: Length :
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://crawford.anu.edu.au/acde/publications/publish/papers/wp1998/9801.htm (text/html)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: Invisible Transfers in Indian Federalism (1997)
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:pas:papers:1998-01

Access Statistics for this paper

More papers in Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Prema-chandra Athukorala ().