Fiscal space with states and pay commission
Dholakia, Ravindra H.
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This article estimates the fiscal space available with the state governments, in case they implement the Sixth Central Pay Commission recommendations. It prepares base case estimates for the fiscal space based on liberal and plausible assumptions and shows that most of the states have the space to incur the estimated additional expenditure. Some states are likely to face difficulties in the initial one or two years. However, they can consider several options to overcome the problem.
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