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In Search of Long Run Stability for Fiscal Transfers in Indian Federalism

Nimai Das

MPRA Paper from University Library of Munich, Germany

Abstract: The stability of federal transfers system in long run to be achieved if both the forms of transfers, that is to say central devolution (centre to state) and state contribution (state to centre) are stationary and cointegrated. Prior to analyze this issue, it offers a comparative picture of the states with net gain/loss from federal transfers over time. Though, the central resource pools are constantly welled-off by resource mobilizations of the states, the financial devolution patterns however failed to address any corrective measures in favor of the fiscally unhealthy states.

Keywords: Indian fiscal federalism; sustainable resource transfers; cointegration with structural break (search for similar items in EconPapers)
JEL-codes: C32 H11 H77 (search for similar items in EconPapers)
Date: 2017
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