IDEAS home Printed from https://ideas.repec.org/p/npf/wpaper/05-26.html
   My bibliography  Save this paper

Fiscal reforms at the sub-national level: The case of Punjab

Author

Listed:
  • Sawhney, Upinder

    (National Institute of Public Finance and Policy)

Abstract

The importance and need for sub-national fiscal reforms is all too obvious in India where the States are facing severe fiscal imbalances since the beginning of the nineties. A decade of political strife in the eighties, followed by populist economic policies in the nineties led to a massive fiscal deterioration in Punjab, hampering its overall growth process. The Fiscal Reform Programme in the state was initiated in 1999 with the signing of a Memorandum of Understanding between the Government of India and the Punjab government. This was followed by the setting up of various committees and commissions to look into the problems of revenue mobilisation, expenditure management, public enterprises and the power sector. The more recent effort towards fiscal consolidation has been the enactment of Fiscal Responsibility and Budget Management Act, 2003. The assessment of the entire fiscal reform effort of the state reveals that the Punjab government is seized of the seriousness of the situation, admits the gravity of consequences but lacks the grit and determination to implement certain hard decisions for fiscal restructuring. The government is very much caught up in the web of populist policies and succumbs readily to political pressure against certain unpopular decisions for attaining fiscal stability. The success of the fiscal reform programme depends only on the administrative competence and political will of the government towards achieving longterm fiscal consolidation and restoration of fiscal balances in the state.

Suggested Citation

  • 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.
    • Handle: RePEc:npf:wpaper:05/26
    Note: Working Paper 26, 2005
    as

    Download full text from publisher

    File URL: http://www.nipfp.org.in/working_paper/wp05_nipfp_026.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:npf:wpaper:15 is not listed on IDEAS
    2. 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. Narayan, Laxmi, 2015. "Some Aspects of Haryana State Finances –An Exploratory Analysis," MPRA Paper 64697, University Library of Munich, Germany, revised Apr 2015.
    2. Maurya, Nagendra Kumar, 2014. "Debt sustainability of state finances of Uttar Pradesh government," MPRA Paper 55692, University Library of Munich, Germany.

    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 qt2722k3w2, Department of Economics, UC Santa Cruz.
    2. 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.
    3. Truong Nguyen, 2013. "Estimating India's Fiscal Reaction Function," ASARC Working Papers 2013-05, The Australian National University, Australia South Asia Research Centre.
    4. 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.
    5. 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

    Keywords

    Fiscal reforms ; Punjab;

    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:npf:wpaper:05/26. 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: S.Siva Chidambaram The email address of this maintainer does not seem to be valid anymore. Please ask S.Siva Chidambaram to update the entry or send us the correct address (email available below). General contact details of provider: http://www.nipfp.org.in .

    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.