Fiscal Management in India: A Study of the Impact of FRBM Act
Journal Title: VISION: Journal of Indian Taxation - Year 2018, Vol 5, Issue 2
Abstract
Fiscal deficit, the gap between government's aggregate receipts and aggregate consumption, gives the flag to the union about the aggregate acquiring necessary from all sources. Since these deficits had to be met by borrowings, the internal debt of the government accumulated rapidly from 35 percent of GDP at the end of 1980-81 to 53 percent of GDP at the end of 1990-91. Fiscal profligacy seen to have caused balance of payments crisis in 1991 and a reduction in the fiscal deficit was therefore an urgent priority at the start of the reforms. This paper aims at describing intricacies of fiscal deficit and to assess the impact of FRBMA on fiscal deficit in India from 1991-92 to 2016-17 by statistical techniques. The study observes a significant impact of FRBMA on fiscal deficit discipline in India and offers some valuable suggestions for effective fiscal governance and achieving targets pre-set in FRBMA.
Authors and Affiliations
Ankita Singh, Akanksha Singh Fouzdar
Keywords
Related Articles
- EP ID EP625318
- DOI 10.17492/vision.v5i2.14388
- Views 191
- Downloads 0
Efficiency in Value Added Tax in Sub-National Governments in India: An Empirical Analysis
The present study attempts to analyse whether the VAT efficiency has improved after its implementation. Further, we examine the major determinants of VAT efficiency for 17 non-special category Indian states for the perio...
Fiscal Consolidation and Macroeconomic Variables in India: A Cointegration Analysis
Fiscal consolidation is in the forefront of policy discussion in India since 1990s. But the debate on fiscal consolidation and its real effects has been unable to attain any culmination so far on analytical as well as em...
A Critical Appraisal of Goods and Services Tax in India
The present paper attempts to make a critical appraisal of Goods and Services Tax (GST), implemented in India from 1st July, 2017. In addition to explaining the structure of GST in India as well as the tax rates under it...
International Tax Avoidance and Evasion with Special Reference to India
International tax avoidance and evasion is a serious problem in developing countries where the tax systems are still evolving. While it is true that international business operations are exposed to the risk of being subj...
An Analysis of Public Spending on Education in India with Special Reference to Odisha
Education plays vital role for human development. But unfortunately the annual budget allocation as percent of GDP in India is lower in comparison to the same in developing nations. To get a proper insight, the current p...