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

Some Analytics and Empirics of Fiscal Restructuring in India

The TFC?s focus on growth as a key element of its fiscal reform strategy is well taken. Also eminently sensible are its recommendations for performance budgeting; doing away with the distinction between Plan and non-Plan expenditure; and transparency including elimination of all hidden subsidies. However, the major weakness of the strategy consists of not dovetailing demand management policies in a developmental programme; ignoring the saving-generating impact of investment in an economy where rural and informal sectors are characterised by considerable underutilisation of resources even while the formal sector may not have much slack; treating education, health and other social sector expenditures as current; and absence of optimality considerations in respect of allocation of expenditures and of alternative modes of their financing, taking into account their short- and longer-term effects on growth, equity and government finances.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top