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

Revenue DeficitSubscribe to Revenue Deficit

State Level Debt–Deficit Dynamics

An analysis of the debt and deficit of states based on the budget estimates of 2016–17 shows that almost half of them have a fiscal deficit target higher than the limit set in the Fiscal Responsibility and Budget Management Act. These states need to focus on the quality of expenditure and elimination of revenue deficit as per the framework proposed by the Fourteenth Finance Commission to enhance state-level capital spending.

Beyond Fiscal Prudence and Consolidation

Since sustainable deficit could be different than the numeric fiscal rule, a review of the Fiscal Responsibility and Budget Management Act is timely and important. However, such a review should bear in mind that macro-stabilisation is a central function and the burden of fiscal adjustment should squarely fall on the union government keeping state debt and deficits withinFRBM limits. Maintaining the higher tax to gross domestic product ratio of last year will be key for fiscal prudence in 2016-17.

What Ails Kerala's Economy:A Sectoral Exploration

The `Kerala model' of development has been facing a serious crisis due to low growth, high cost, low productivity, low investment and low employment in the state economy. This paper analyses the performance of major sectors of the state economy, such as agriculture, industry and the financial sector, during the past two decades and brings out the problems they confront. The paper highlights the lack of a development strategy in Kerala for growth and employment generation.

Maharashtra - Budget 2001-2002:A Directionless and Empty Ritual

Given the grim financial situation in the state, the state Budget 2001-02 was expected to offer bold initiatives. However, there appears to be a lack of political and administrative will to deal with substantive issues. The budget not only fails to address issues of expenditure management - the question of the burden of wages and salaries, for instance, has assumed serious proportions - but only outlines temporary measures to put the state's finances on a firmer footing.
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