Fiscal discipline in India

Artikel

The present study broadly attempts to analyze the role of Fiscal Responsibility and Budget Management Act in restoring fiscal balance in India. It analyses the need for fiscal rules and constraints in India. The study aims at finding out the major factor behind rising fiscal imbalance in India and to examine whether there is an electoral motive towards high fiscal deficit to GDP ratio or not. It also analyzes the effectiveness of various measures undertaken at the central and state level to inculcate fiscal discipline in the fiscal management. The study also makes an attempt to do a critical in depth reviews of the Fiscal Responsibility and Budget Management Act and make an attempt at examining effectiveness and suitability of FRBM Act through a quantitative analysis. It also makes an attempt to suggest improvements in the fiscal monitoring mechanism in India. We employ Ordinary Least Square (OLS) method to examine the impact of Fiscal Responsibility and Budget Management Act on fiscal deficit in India using the data for the period 1980-81 to 2008-09. The regression results indicates that FRBM Act does not have a significant effect on the Gross Fiscal Deficit (GFD) to GDP ratio where as GDP (at factor cost) growth rate has a significant negative effect on the GFD to GDP ratio.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Romanian Journal of Fiscal Policy (RJFP) ; ISSN: 2069-0983 ; Volume: 2 ; Year: 2011 ; Issue: 1 ; Pages: 1-23 ; Bucharest: Editura ASE

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; International Fiscal Issues; International Public Goods
• Subject: fiscal policy rules ; fiscal responsibility ; tax effort ; fiscal discipline ; fiscal deficit

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Sucharita, Sanhita ; Sethi, Narayan
• Event: Veröffentlichung
• (who): Editura ASE
• (where): Bucharest
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/59803
• Last update: 10.03.2025, 11:43 AM CET