EconPapers    
Economics at your fingertips  
 

Debt Sustainability of States in India: An Assessment

Balbir Kaur, Atri Mukherjee and Anand Prakash Ekka

MPRA Paper from University Library of Munich, Germany

Abstract: The debt position of the state governments in India, which deteriorated sharply between 1997-98 and 2003-04, has witnessed significant improvement since 2004-05. Debt sustainability analysis based on empirical estimation of inter-temporal budget constraint and fiscal policy response function in a panel data framework, covering 20 Indian states for the period 1980-81 to 2015-16, indicates that the debt position at the state level is sustainable in the long run. The increase in contingent liabilities of states and take-over of large chunk of these liabilities through debt restructuring of State Power Distribution Companies, however, would adversely affect the debt position of states.

Keywords: gross fiscal deficit; public debt; state governments (search for similar items in EconPapers)
JEL-codes: H7 H74 (search for similar items in EconPapers)
Date: 2017-10-13
New Economics Papers: this item is included in nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/81929/1/MPRA_paper_81929.pdf original version (application/pdf)

Related works:
Journal Article: Debt sustainability of states in India: An assessment (2018) Downloads
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:pra:mprapa:81929

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2025-03-19
Handle: RePEc:pra:mprapa:81929