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

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Inequality, Income Distribution and Growth in Maharashtra

The inter-district inequality of per capita incomes in Maharashtra for the period 2001-09 is analysed here and it is found that inequality rose for the period 2001-05 and subsequently declined. Though it has been rising, it is at a lower level than that observed for 2001-05. This has been accompanied by shifts in the relative ranking of different districts across the income distribution. Data does not point to the convergence of per capita incomes across districts. The historical composition of incomes, in particular the share of the tertiary sector in GDP, is an important predictor of divergence in district per capita incomes.

Growth across States in the 2000s

This article employs two measures of unconditional convergence – sigma and beta convergence – and fi nds evidence supporting convergence in growth for the span 2001-10. Convergence is markedly evident for all states (non-special category and special category considered together) and non-special category states, while convergence among the special category states is slightly weak. This is in continuation of the arguments in Kumar and Subramanian (“Growth in India’s States in the First Decade of the 21st Century: Four Facts”, EPW , 21 January 2012).

Fiscal sustainability Analysis of Tamil nadu

Fiscal sustainability is associated with the idea that governments can continue with the existing fiscal policies indefinitely and remain solvent. This article examines the fiscal sustainability of Tamil Nadu by looking at four major deficit indicators, viz, the revenue deficit, the primary revenue balance, the primary deficit and the gross fiscal gap using the Gregory- Hansen Cointegration test. It contends that if revenues and expenditures are both difference stationary and cointegrated, the fiscal stance is sustainable. Alternatively, if revenues and expenditures are difference stationary but not cointegrated, then the fiscal position is deemed to be unsustainable. Evidence for Tamil Nadu using annual data for 1971-2006 finds that when considered in real terms with the exception of the gross fiscal gap, the other three deficit indicators - the revenue deficit, the primary deficit and the primary revenue balance - are not sustainable.
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