Indian Subnational Finances: Recent Performance

32 Pages Posted: 28 Nov 2007

See all articles by Adarsh Kishore

Adarsh Kishore

International Monetary Fund (IMF)

A. Prasad

International Monetary Fund (IMF)

Date Written: August 2007

Abstract

The fiscal performance of the States in India has been an area of concern for quite some time. The Twelfth Finance Commission (TFC) recommended a three-pronged strategy to alleviate States' fiscal distress, built around greater orientation toward market discipline, incentives for fiscal consolidation targets, and commitment to fiscal correction. We find that States have created fiscal space through raising revenues and reducing and reprioritizing expenditures. Looking ahead, expansion of fiscal space is essential to meet the States' large infrastructure and social needs in order to alleviate bottlenecks to growth. This needs to be accomplished without undermining fiscal sustainability.

Keywords: Working Paper, India, Public finance, Budgets, Public debt, Fiscal management

Suggested Citation

Kishore, Adarsh and Prasad, Ananthakrishnan, Indian Subnational Finances: Recent Performance (August 2007). IMF Working Papers, Vol. , pp. 1-30, 2007. Available at SSRN: https://ssrn.com/abstract=1033205

Adarsh Kishore

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Ananthakrishnan Prasad (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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