Proposals for State-Level Budgetary Reforms

M Govinda Rao This paper seeks to examine the present state of public finance at the state level with a view to tracing the emerging trends in the medium as well as long term. The objective is to identify the major problem areas and to indicate the policy changes needed to tackle them. Section I of the paper brings out the seriousness of the fiscal problem at the state level. The major trends in expenditure and revenue are discussed, respectively, in Sections II and III and Section IV deals with the policy changes to deal with the identified problems.