Expenditure Accountability in India: The Interlinkages

Chapter 2.1 in Morris, Sebastian (ed.) "India Infrastructure Report 2003 - Public Expenditure Allocation and Accountability", 3inetwork, Oxford Univ Press, New Delhi, 2003

33 Pages Posted: 26 Nov 2012

See all articles by Sebastian Morris

Sebastian Morris

Indian Institute of Management, Ahmedabad - Economics; Goa Institute of Management

Date Written: January 1, 2003

Abstract

Brings out the nature of public expenditure accountability in India especially at the federal level. The perversities - large role for off budget items, the process that leads to expanding expenditures with little functional but much procedural control, are brought out. The division of expenditure into Plan and Non-Plan is one the perversities since it leads to gaming by state governments to get central funds. Despite many cumbersome reporting requirements, there is little functional oversight or even corrective measures possible in the current system. General public concern for the fiscal deficit alone may not be the right approach, and attempts to reduce the same by cutting out expenditures may not be right especially when the elasiticity of tax revenures with respect to investment expenditures in a recessionary situation is high. Argues for a structural approach to the fiscal deficit and shows the limitations of the sustainability approach. Suggests that major changes are required in the process of budgeting, in the vast array of centrally sponsored schemes and in the mode of subsidisation.

Keywords: India, Public Expenditure, Accountability, Governance, Infrastructure, Planning, Public Investments, Fiscal Deficit, Economic Reform, Federal Government

JEL Classification: O2, E6, H1, H5, H7

Suggested Citation

Morris, Sebastian, Expenditure Accountability in India: The Interlinkages (January 1, 2003). Chapter 2.1 in Morris, Sebastian (ed.) "India Infrastructure Report 2003 - Public Expenditure Allocation and Accountability", 3inetwork, Oxford Univ Press, New Delhi, 2003, Available at SSRN: https://ssrn.com/abstract=2180673

Sebastian Morris (Contact Author)

Indian Institute of Management, Ahmedabad - Economics ( email )

Vastrapur
Ahmedabad 380015, Gujarat
India
+919824232121 (Phone)

HOME PAGE: http://sebastianmorris.org/

Goa Institute of Management ( email )

Ribandar
Ribandar
Panaji, Goa 403006
India

HOME PAGE: http://sebastianmorris.org/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
38
Abstract Views
440
PlumX Metrics