dc.contributor.author | Dholakia, Ravindra H. | |
dc.contributor.author | Karan, Navendu | |
dc.date.accessioned | 2010-10-27T06:26:17Z | |
dc.date.available | 2010-10-27T06:26:17Z | |
dc.date.copyright | 2005 | |
dc.date.issued | 2005-10-27T06:26:17Z | |
dc.identifier.uri | http://hdl.handle.net/11718/10015 | |
dc.description | Economic and Political Weekly, Vol. 40, No. 25, (June 18, 2005), pp. 2577-86 | en |
dc.description.abstract | There are differences in the definition of debt used by different bodies like the state
governments, Reserve Bank of India, Office of the Comptroller and Auditor General of India
and the Finance Commission. Moreover, none of these definitions satisfy the criterion that
fiscal deficit in a given year should equal the sum of increase in debt and monetisation. This
paper builds on this basic criterion to derive a theoretically consistent and appropriate
definition of debt. The definition is then used to estimate debt for 18 non-special category
states and 10 special category states for the period 1989-90 to 2003-04 and obtain
effective interest rates for these states. We observe that non-special category states have a
significantly greater probability of fiscal sustainability than the special category states.
Moreover, when the trend in the proportion of debt of each state in the aggregate of all states
is compared with trends in similar proportions of fiscal transfers from the centre and that
in the primary deficit on own account, we find that certain states have benefited by
largesse from the centre despite a consistently bad performance, while certain
performing states have been penalised by reduced fiscal transfers. | |
dc.language.iso | en | en |
dc.subject | Debt | en |
dc.subject | Fiscal Deficit | en |
dc.subject | Gross Fiscal debt | en |
dc.title | Consistent measurement of fiscal deficit and debt of states in India | en |
dc.type | Article | en |