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

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The Debt Sustainability of West Bengal

This paper uses the indicator-based approach to assess subnational debt and the fiscal sustainability of West Bengal for the period 2000–01 to 2017–18. The period has been categorised into four phases based on debt sustainability. It is studied here how the state has moved from an “unsustainable” debt burden in the first phase (2000–01 to 2003–04) to more sustainable debt levels by the fourth phase (2010–11 to 2017–18), largely driven by the Fiscal Responsibility and Budget Management Act.

Tax System Changes in the Budget

There were high expectations from the budget on the changes in the tax system to provide stimulus to the beleaguered economy. However, fiscal conservatism has prevailed. The attempt to broaden the base by eliminating tax exemptions and preferences could have been done without complicating the tax structure. On the macro side, there are questions about the unrealism of the revenue estimates. Unduly optimistic estimates result in “tax terrorism,” lead to inefficient budget management and have adverse impacts on state finances.

Will UDAY Brighten Up Rajasthan’s Finances?

Fiscal prudence in most countries, including India, is focused on general government deficit. Though there is strong merit in focusing on the public sector borrowing requirement (PSBR) to judge fiscal health, paucity of data and its timeliness always prevented having a consolidated view of public...

Uttar Pradesh: Deeper into the Debt Trap

The fiscal scenario in Uttar Pradesh is showing definite signs of deterioration. Part of the reason for the slow growth of per capita income is the state's inability to raise resources; but the government's inability to allocate funds for productive development has compounded the situation.

Withering Away of Canons of Financial Propriety

It is a matter for concern that in Maharashtra, a state which was once considered among the best governed in the country with sound financial management, serious questions are being raised whether a state of financial emergency needs to be declared under Article 360 of the Constitution which would be the first instance of its kind after independence. Why has the situation come to this pass and what needs to be done to set it right?
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