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Fiscal Decentralization and Development Outcomes in India: An Exploratory Analysis

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  • Kalirajan, Kaliappa
  • Otsuka, Keijiro

Abstract

This paper attempts to quantify the impact of fiscal decentralization in India on its social infrastructure and on rural development. Overall, the results in this paper indicate that Government of India within a federal framework has been fostering development equitably across its states, particularly through health and education expenditures aimed at improving human capital development. In this context, the importance of the two tier centre-states decentralization should be noted. However, the third tier of local governance, particularly the state-rural local bodies decentralization has been dismal and has not achieved significant results across states, which warrant the attention of the central and state governments.

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  • Kalirajan, Kaliappa & Otsuka, Keijiro, 2012. "Fiscal Decentralization and Development Outcomes in India: An Exploratory Analysis," World Development, Elsevier, vol. 40(8), pages 1511-1521.
    • Handle: RePEc:eee:wdevel:v:40:y:2012:i:8:p:1511-1521
    DOI: 10.1016/j.worlddev.2012.04.005
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    18. Betz, Joachim, 2019. "India's social policies: Recent changes for the better and their causes," GIGA Working Papers 314, GIGA German Institute of Global and Area Studies.
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