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

Should States Target a 3% Fiscal Deficit?

India’s current fiscal rules target a 3% fiscal deficit for the central and state governments. Though states have largely adhered to their borrowing ceilings, subnational debt is proliferating. A significant reduction in subnational borrowing is required to stabilise the states’ debt around the desired level of 20% of gross domestic product. Symmetry should not be forced on central and state borrowing flows, given their widely divergent levels of debt stocks.



Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

₹649for India

$20for overseas users

Get instant access to the complete EPW archives

Subscribe now

Updated On : 8th Mar, 2018

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