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Measurement Issues in Comparing Fiscal Performance of States

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  • Dholakia, Ravindra H.

Abstract

Interstate comparison of fiscal performance requires use of appropriate concepts and proper measurement of state income, fiscal deficit and debt. GSDP at market prices and a comprehensive concept of debt consistent with the fiscal deficit of a state government are the right concepts to use for the purpose. The rating agencies and the Finance Commissions have not used the right concepts so far. Illustrative estimates for Gujarat show that it can lead to misleading target setting and wrong perceptions about the fiscal performance of the states. CSO, RBI and the rating agencies have to ensure that right concepts are used in interstate comparison.

Suggested Citation

  • Dholakia, Ravindra H., 2002. "Measurement Issues in Comparing Fiscal Performance of States," IIMA Working Papers WP2002-10-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:wp00044
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    Cited by:

    1. Karan Navendu & Dholakia, Ravindra H., 2004. "Consistent Measurement of Fiscal Deficit and Debt of States in India," IIMA Working Papers WP2004-07-05, Indian Institute of Management Ahmedabad, Research and Publication Department.

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