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 227
- Downloads 0
Emerging Trend in Indian Direct Taxation: An Analysis of Income Computation and Disclosure Standards
Income computation and disclosure standard is one of the competent standard which minimizes the divergence between accounting income and tax income. This standard does not require any additional books of accounts to be m...
Fiscal Management in India: A Study of the Impact of FRBM Act
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 borro...
Related Party Transactions in India: Are they influenced by New Regulatory Framework?
The unabating scandals and financial irregularities across the world seem to underline the related party transactions (RPTs) as one of the means corporates attempt to ‘manage’ earnings and divert resources as well. Misus...
An Analysis of Public Finance on Education Sector in India
Indian education system is in the mode of massification. Paucity of Finance and quality crunching education sector is a policy discourse today. Joint responsibility of central and state governments for educational develo...
Centre-State Financial Relations: A Study on the Role of Finance Commission
A federal economy is usually characterised by the emergence of imbalances between functional responsibilities and financial resources of different tiers of government. Vertical imbalances in terms of resources and expend...