In this paper an attempt has been made to detect stationarity and inequality of the State Domestic Product among twenty states of Indian Federal System. For the purpose, time series and panel data has been utilized. Inequality in SDP and per capita SDP among states has been estimated with the...

Inadequate revenue sources, uncontrolled growth of current expenditures and failure of central transfers to grow as fast as the states ‘own revenues’ have been the major sources of fiscal imbalance at states level. The existence of nexus in between NTR and SDP can be examined in several ways...