Although fiscal imbalance and its adverse effects on macro economic equilibrium in India have been receiving wide attention, the issue at States' level has not so far been adequately analyzed. In many respects, fiscal situation in States is more critical than that at the Centre as States have...

The economic slow-down of several States in India including Gujarat during the later half of 90s has caused considerable disturbance in the State's fiscal equilibrium. The fiscal deficit has more than doubled during last five years and government's debt has jumped up from 17 percent of GSDP to...

The study provides a detailed review of the past fiscal trends in India, analyzes the current fiscal situation at the Centre and the States and attempts to project the likely alternative scenarios for the future. The study identifies the possible corrective measures that need to be taken to...

It is well-known that federal form of government is best suited for a society with vastly diverse economic and cultural background such as India. There are not only political reasons but also powerful economic arguments for preferring a federal system to unitary system of governance. In India...

Devising optimal criteria for federal fiscal transfers to reduce fiscal imbalances across the States has always been a demanding job in India. In particular, two aspects that have become perennial sources of controversy are; (i) the disintegrated approach, and (ii) the near-subjective assignment...

Andhra Pradesh is one of the pioneering States to earnestly initiate economic and fiscal reform at the Subnational level in India. Prior to the 1996 reform program, the State's budgetary position was under severe stress as in many States in India. The economic growth was below potential,...

Devising optimal criteria for federal fiscal transfers to reduce fiscal imbalances across the States has always been a demanding job in India. In particular, two aspects that have become perennial sources of controversy are: 1) the disintegrated approach, and 2) the near-subjective assignment of...