IDEAS home Printed from https://ideas.repec.org/p/cdl/ucscec/qt2722k3w2.html
   My bibliography  Save this paper

Some Patterns in Center-State Fiscal Transfers in India: An Illustrative Analysis

Author

Listed:
  • Singh, Nirvikar
  • Vasishtha, Garima

Abstract

India’s federal system is distinguished by tax and expenditure assignments that result in large vertical fiscal imbalances, and consequent transfers from the central government to the state governments. Several channels are used for these transfers: the Finance Commission, the Planning Commission, and central government ministries. We use panel data on center-state transfers to examine how the economic and political importance of the states influences the level and the composition of per capita transfers to the states, as well as differences in temporal patterns of Planning Commission and Finance Commission transfers. We find evidence that states with indications of greater bargaining power seem to receive larger per capita transfers, and that there is greater temporal variation in Planning Commission transfers.

Suggested Citation

  • Singh, Nirvikar & Vasishtha, Garima, 2004. "Some Patterns in Center-State Fiscal Transfers in India: An Illustrative Analysis," Santa Cruz Department of Economics, Working Paper Series qt2722k3w2, Department of Economics, UC Santa Cruz.
    • Handle: RePEc:cdl:ucscec:qt2722k3w2
    as

    Download full text from publisher

    File URL: https://www.escholarship.org/uc/item/2722k3w2.pdf;origin=repeccitec
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Khemani, Stuti, 2002. "Federal politics and budget deficits: evidence from the states of India," Policy Research Working Paper Series 2915, The World Bank.
    2. repec:npf:wpaper:15 is not listed on IDEAS
    3. Rajaraman, Indira, 2004. "Fiscal developments and outlook in India," Working Papers 04/15, National Institute of Public Finance and Policy.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. A. Udayaadithya & Anjula Gurtoo, 2013. "Governing the local networks in Indian agrarian societies—an MAS perspective," Computational and Mathematical Organization Theory, Springer, vol. 19(2), pages 204-231, June.
    2. Mukherji, Arnab & Mukherji, Anjan, 2012. "Bihar: What Went Wrong? And What Changed?," Working Papers 12/107, National Institute of Public Finance and Policy.
    3. Garg, Sandya & Ashima Goyal & Rupayan Pal, 2014. "Why tax effort falls short of capacity in Indian states: A Stochastic frontier approach," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-032, Indira Gandhi Institute of Development Research, Mumbai, India.
    4. Nirvikar Singh & T.N. Srinivasan, 2004. "Indian Federalism, Economic Reform and Globalization," Public Economics 0412007, University Library of Munich, Germany.
    5. Sandhya Garg, 2015. "Spatial convergence in public expenditure across Indian states: Implication of federal transfers," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2015-028, Indira Gandhi Institute of Development Research, Mumbai, India.
    6. Prasant Kumar Panda, 2009. "Central Fiscal Transfers and States’ Own-Revenue Efforts in India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 3(3), pages 223-242, July.

    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. Singh, Nirvikar & Vasishtha, Garima, 2004. "Some Patterns in Center-State Fiscal Transfers in India: An Illustrative Analysis," Santa Cruz Department of Economics, Working Paper Series qt1r02k470, Department of Economics, UC Santa Cruz.
    2. Singh, Nirvikar & Vasishtha, Garima, 2004. "Some Patterns in Center-State Fiscal Transfers in India: An Illustrative Analysis," Santa Cruz Department of Economics, Working Paper Series qt1r02k470, Department of Economics, UC Santa Cruz.
    3. World Bank, 2004. "Stabilization and Fiscal Empowerment : The Twin Challenges Facing India's States, Volume 2. Detailed Report," World Bank Publications - Reports 16775, The World Bank Group.
    4. Liu, Lili & Waibel, Michael, 2010. "Managing subnational credit and default risks," Policy Research Working Paper Series 5362, The World Bank.
    5. Swati Yadav & V. Upadhyay & Seema Sharma, 2012. "Impact of Fiscal Policy Shocks on the Indian Economy," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 6(4), pages 415-444, November.
    6. Kaushik Basu & Sattwick Dey Biswas & Pratik Harish & Sasi Dhar & Mounik Lahiri, 2016. "Is multi-party coalition government better for the protection of socially backward classes in India?," WIDER Working Paper Series wp-2016-109, World Institute for Development Economic Research (UNU-WIDER).
    7. Truong Nguyen, 2013. "Estimating India's Fiscal Reaction Function," ASARC Working Papers 2013-05, The Australian National University, Australia South Asia Research Centre.
    8. Sawhney, Upinder, 2005. "Fiscal reforms at the sub-national level: The case of Punjab," Working Papers 05/26, National Institute of Public Finance and Policy.
    9. Yesim Kustepeli & Gülcan Önel, 2005. "The Effects of Political Fragmentation on Fiscal Deficits in Turkey," Discussion Paper Series 05/02, Dokuz Eylül University, Faculty of Business, Department of Economics, revised 23 Nov 2005.
    10. Ritika Jain, 2018. "Contributions to the exchequer funds by state level public sector enterprises: does political alignment matter?," Constitutional Political Economy, Springer, vol. 29(1), pages 93-113, March.
    11. Khemani, Stuti, 2004. "Political cycles in a developing economy: effect of elections in the Indian States," Journal of Development Economics, Elsevier, vol. 73(1), pages 125-154, February.
    12. Stephen Howes, & Deepak Mishra, & VJ Ravishankar, 2007. "Ten Years of World Bank Sub-National Policy-Based Lending to India: A Retrospective," ASARC Working Papers 2007-18, The Australian National University, Australia South Asia Research Centre.
    13. Kaushik Basu & Sattwick Dey Biswas & Pratik Harish & Sasi Dhar & Mounik Lahiri, 2016. "Is multi-party coalition government better for the protection of socially backward classes in India?," WIDER Working Paper Series 109, World Institute for Development Economic Research (UNU-WIDER).
    14. Khemani, Stuti, 2003. "Partisan politics and intergovernmental transfers in India," Policy Research Working Paper Series 3016, The World Bank.
    15. Singh, Nirvikar, 2006. "State Finances in India: A Case for Systemic Reform," Santa Cruz Department of Economics, Working Paper Series qt8560h76z, Department of Economics, UC Santa Cruz.
    16. Rajaraman, I., 2005. "Financing Rural Infrastructure in Developing Countries: the case of India," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(2).

    More about this item

    Statistics

    Access and download statistics

    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:cdl:ucscec:qt2722k3w2. 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: Lisa Schiff (email available below). General contact details of provider: https://edirc.repec.org/data/ecucsus.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.