ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Satadru Sikdar

Subsidies, Merit Goods and the Fiscal Space for Reviving Growth

The incidence of implicit and explicit budget subsidies provided by the central and state governments has declined from about 12.9% of the gross domestic product in 1987–88 to 10.3% at present, with the bulk of these subsidies being provided by the states and about half being spent on non-merit subsidies. This paper argues that rationalisng non-merit subsidies is one of several deep fiscal reform measures that could together free up massive fiscal space that can be used to finance an inclusive growth revival strategy.

Inclusive Fiscal Adjustment for Reviving Growth

Unrealistic revenue projections leading to strong expenditure compression is primarily responsible for India’s growth deceleration. Growth will decelerate further without a programme of deep fiscal adjustment. How a fiscal space, amounting to over 6% of the gross domestic product, can be freed through such an adjustment programme is demonstrated. This space can be potentially used for an inclusive public expenditure-led strategy for reviving growth.

Enrolment and Dropout Rate in School Education

The disaggregated analysis of the unit level data of the 64th round of the National Sample Survey Office (2007-08) reveals that universal enrolment, retention and completion in both elementary and secondary education can only be achieved by improving quality and mitigating financial constraints, especially for the lower classes.

Allocations for Education during the Eleventh Plan

With the exception of the secondary education sector which was emphasised during the Eleventh Five-Year Plan, an analysis of budgetary allocations through centrally-sponsored schemes over 2006-07 to 2011-12 shows a move towards consolidation into larger schemes. Smaller schemes are difficult to administer at the national level and suffer from low uptake by the states. This positive development should therefore continue in the Twelfth Plan.