IDEAS home Printed from https://ideas.repec.org/h/spr/isbchp/978-981-10-6217-9_8.html
   My bibliography  Save this book chapter

Fiscal Deficit and Economic Growth Linkage in India: Impact of FRBM Act

In: Challenges and Issues in Indian Fiscal Federalism

Author

Listed:
  • Ranjan Kumar Mohanty

    (National Institute of Public Finance and Policy (NIPFP))

Abstract

The major objective of the study is to examine the impact of fiscal deficit on economic growth in India using Autoregressive Distributed Lag (ARDL) approach. It also analyzes whether the execution of Fiscal Responsibility and Budget Management (FRBM) Act has any influence on the fiscal deficit-economic growth linkage in India. The ARDL Bounds Testing Approaches to Cointegration confirm the long-run relationship among the selected variables. The estimated results show that fiscal deficit has an adverse effect on economic growth in both the long run and short run in India. The Pre-FRBM Act regime analysis reveals that implementation of FRBM Act has influenced and weakens the relationship between fiscal deficit and economic growth in India. The Government should contain the fiscal deficit and should try to achieve the target set by the FRBM Act.

Suggested Citation

  • Ranjan Kumar Mohanty, 2018. "Fiscal Deficit and Economic Growth Linkage in India: Impact of FRBM Act," India Studies in Business and Economics, in: Naseer Ahmed Khan (ed.), Challenges and Issues in Indian Fiscal Federalism, chapter 0, pages 89-105, Springer.
    • Handle: RePEc:spr:isbchp:978-981-10-6217-9_8
    DOI: 10.1007/978-981-10-6217-9_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ranjan Kumar Mohanty, 2020. "Fiscal Deficit and Economic Growth Nexus in India: A Simultaneous Error Correction Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 18(3), pages 683-707, September.

    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:spr:isbchp:978-981-10-6217-9_8. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.