Singh, Nirvikar and Srinivasan, T.N. (2006): Federalism and economic development in India:An assessment.
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This paper examines India’s federal system in the context of prospects for India’s future economic growth and development. After a brief review of India’s recent policy reforms and economic development outcomes, and of the country’s federal institutions, the analysis focuses on the major issues with respect to India’s federal system in terms of their developmental consequences. We examine the impacts of tax assignments, expenditure authority and the intergovernmental transfer system on the following aspects of India’s economy and economic performance: the quality of governance and government expenditure, the efficiency of the tax system, the fiscal health of different tiers of government, and the impacts on growth and on regional inequality. In each case, we discuss recent and possible policy reforms. We make comparisons with China’s federal system where this is instructive for analyzing the Indian case. Finally, we provide a discussion of potential reforms of aspects of India’s federal institutions.
|Item Type:||MPRA Paper|
|Institution:||University of California, Santa Cruz|
|Original Title:||Federalism and economic development in India:An assessment|
|Subjects:||H - Public Economics > H1 - Structure and Scope of Government
H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H77 - Intergovernmental Relations; Federalism; Secession
|Depositing User:||Nirvikar Singh|
|Date Deposited:||28. Dec 2006|
|Last Modified:||12. Feb 2013 16:33|
India, China, federalism, intergovernmental transfers, policy reforms