This article examines recent and potential reforms in India's fiscal federal system. We summarize key federal institutions in India, including tax and expenditure assignments, and mechanisms for Center-state transfers. We discuss the institutional process by which reforms can and do take place,...

The sharp deterioration in the fiscal health of the states has been a matter of concern for policymakers. The remedial measures recently taken include the institution of the Medium Term Fiscal Restructuring Policy (MTFRP), stipulating performance requirements for borrowing from the World Bank...