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India’s Experience with Fiscal Rules :, An Evaluation and The Way Forward, Alejandro Simone, Petia Topalova

This paper examines India's experience with fiscal rules with a view to inform the design of a possible successor fiscal framework to the FRBMA. Among several proposals to strengthen the FRBMA, a framework that focuses medium-term fiscal policy on debt sustainability by the use of a medium term debt target, and annual nominal expenditure growth rules is proposed. This approach tackles the deficit bias at its core and enables countercyclical fiscal policy through automatic stabilizers. Numerical targets should be supported by structural reform measures for both revenues and expenditures, while the coverage of the fiscal rules should be expanded
Table Of Contents
Contents; I. Introduction; II. India's Numerical Fiscal Rules and Fiscal Discipline; A. Central Government; Figures; 1. Fiscal Balances of the Center and States; 2. Outstanding Liabilities of the Center and States; Tables; 1. Adjustment in Central Government Finances, 2003/04-2008/09; B. State Governments; 3. India: FRBMA Roadmap and Fiscal Outturns; 4. State Characteristics and FRL Enactment; 2. Adjustment in State Government Finances, 2002/03-2008/09; 5. Individual States: Correction in Current Deficits; 3. State Fiscal Adjustment and Fiscal Rules
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (42 p.)
Specific Material Designation
Form Of Item

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