IDEAS home Printed from https://ideas.repec.org/a/agr/journl/v3(624)y2020i3(624)p139-160.html
   My bibliography  Save this article

Structural modeling of fiscal structure for policy analysis: A case study of India

Author

Listed:
  • Rajbhushan J NAYAK

    (Sri Sathya Sai Institute of Higher Learning, Prasanthinilayam, India)

  • Vishwanath PANDIT

    (Sri Sathya Sai Institute of Higher Learning, Prasanthinilayam, India)

  • Gopakumar K. U

    (Sri Sathya Sai Institute of Higher Learning, Prasanthinilayam, India)

Abstract

Sustainability is a term that has been used with increasing frequency in the academic literature and recent multilateral policy discussions. Taking note of the crises in different countries heading for a debt trap it is necessary to look at the right combination of fiscal parameters and growth to achieve sustainability and stable development. Fiscal prudence involves exercise of good judgment, common sense, and even caution in the conduct of fiscal policies especially on the expenditure front. Fiscal consolidation is a process where government’s fiscal health is getting improved and is indicated by reduced fiscal deficit. Through some of policy measures like improved tax revenue realization and better aligned expenditure fiscal consolidation can be attainable. This paper empirically analyses the relationship between growth and debt and measures for fiscal consolidation using an empirical model. The period of study is from 1980 to 2016 and study is on central government of India.

Suggested Citation

  • Rajbhushan J NAYAK & Vishwanath PANDIT & Gopakumar K. U, 2020. "Structural modeling of fiscal structure for policy analysis: A case study of India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(624), A), pages 139-160, Autumn.
    • Handle: RePEc:agr:journl:v:3(624):y:2020:i:3(624):p:139-160
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/1479.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=1479&rid=140
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ms. Hélène Poirson & Mr. Luca A Ricci & Ms. Catherine A Pattillo, 2004. "What Are the Channels Through Which External Debt Affects Growth?," IMF Working Papers 2004/015, International Monetary Fund.
    2. V. Pandit, 2000. "Macroeconometric Policy Modeling for India: A Review of Some Analytical Issues," Working papers 74, Centre for Development Economics, Delhi School of Economics.
    3. N. R. Bhanumurthy & Sukanya Bose & Parma Chakravartti, 2018. "Targeting Debt and Deficits in India: A Structural Macroeconometric Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(1), pages 87-119, December.
    4. Mundle, Sudipto & Bhanumurthy, N.R. & Das, Surajit, 2011. "Fiscal consolidation with high growth: A policy simulation model for India," Economic Modelling, Elsevier, vol. 28(6), pages 2657-2668.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chhibber, Ajay & Kalloor, Akshata, 2016. "Reviving Private Investment in India: Determinants and Policy Levers," Working Papers 16/181, National Institute of Public Finance and Policy.
    2. Bhanumurthy, N.R. & Bose, Sukanya & Satija, Sakshi, 2019. "Fiscal Policy, Devolution and Indian Economy," Working Papers 19/287, National Institute of Public Finance and Policy.
    3. Arsène Aurelien NJAMEN KENGDO & Luc NEMBOT NDEFFO & Désiré AVOM, 2020. "The Effect of Foreign Debt on Economic Growth in Sub-Saharan African Sub-Regions," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 109-114.
    4. İbrahim Özmen & Mihai Mutascu, 2024. "Public Debt and Growth: New Insights," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8706-8736, June.
    5. Hüseyin ŞEN & Ayşe KAYA, 2017. "Mali Konsolidasyon Büyüme ve İstihdam için Bir Çıpa mı, Mali Tuzak mı? Teorik ve Ampirik Literatür Temelli Bir Analiz," Sosyoekonomi Journal, Sosyoekonomi Society, issue 25(34).
    6. Gopakumar K.U. & V. Pandit, 2014. "Production, Procurement and Inflation: A Market Model for Foodgrains," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(4), pages 431-456, November.
    7. Olugbenga Onafowora & Oluwole Owoye, 2019. "Impact of external debt shocks on economic growth in Nigeria: a SVAR analysis," Economic Change and Restructuring, Springer, vol. 52(2), pages 157-179, May.
    8. Haytham Y.M. Ewaida, 2017. "The Impact of Sovereign Debt on Growth: An Empirical Study on GIIPS versus JUUSD Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 607-633.
    9. Asit Mohanty & Suresh Kumar Patra & Satyendra Kumar & Avipsa Mohanty, 2016. "An Empirical Analysis of Effect of Public Debt on Economic Growth in India in the Post-Reform Era," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(11), pages 692-705, November.
    10. Serhan ÇIFTÇIOĞLU & Amin SOKHANVAR, 2018. "External Debt- Economic Growth Nexus in Selected CEE Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 85-100, December.
    11. Agénor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2008. "Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction," Journal of Development Economics, Elsevier, vol. 86(2), pages 277-295, June.
    12. Ikonen, Pasi, 2010. "Effect of finance on growth through more efficient utilization of technological innovations," Bank of Finland Research Discussion Papers 21/2010, Bank of Finland.
    13. Athanasios Vamvakidis, 2008. "External debt and economic reform: does a pain reliever delay the necessary treatment?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 11(3), pages 187-199.
    14. Naeem AKRAM*, 2017. "Role of Public Debt in Economic Growth of Sri Lanka: An ARDL Approach," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 27(2), pages 189-212.
    15. Imbs, Jean & Ranciere, Romain, 2005. "The overhang hangover," Policy Research Working Paper Series 3673, The World Bank.
    16. Sanford, Jonathan E., 2004. "IDA Grants and HIPC Debt Cancellation: Their Effectiveness and Impact on IDA Resources," World Development, Elsevier, vol. 32(9), pages 1579-1607, September.
    17. Mr. Athanasios Vamvakidis, 2007. "External Debt and Economic Reform: Does a Pain Reliever Delay the Necessary Treatment?," IMF Working Papers 2007/050, International Monetary Fund.
    18. Mr. Sampawende J Tapsoba, 2013. "Options and Strategies for Fiscal Consolidation in India," IMF Working Papers 2013/127, International Monetary Fund.
    19. Drine, Imed & Nabi, M. Sami, 2010. "Public external debt, informality and production efficiency in developing countries," Economic Modelling, Elsevier, vol. 27(2), pages 487-495, March.
    20. Sukanya Bose & N.R. Bhanumurthy, 2015. "Fiscal Multipliers for India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 9(4), pages 379-401, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:3(624):y:2020:i:3(624):p:139-160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.