Volume : III, Issue : VII, July - 2014

An Assessment of Fiscal Imbalance Position of the Central Government of India

Kalkikumar S. Soni

Abstract :

In the presence of sharp fiscal deterioration at central government, fiscal imbalance position assumes a critical importance in the overall macroeconomic framework in India. This paper analyses the Indian experience with fiscal imbalance position of the central government during 1970-71 to 2012-13. The main focus is on the growth and pattern of the different measures of the deficit and debt and principal causes of high fiscal imbalance position of the central government of India. Study concluded that gross primary deficit was the main culprit for the economic crisis of 1991 but in the post-reform period, revenue and fiscal deficit have become the main culprits for most of the years. On the other hand public debt as percent of GDP has increased continuously through the study period. Increase in subsidies, interest payments and defence expenditure were the principal causes for the high fiscal imbalance position of India.

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Kalkikumar S. Soni An Assessment of Fiscal Imbalance Position of the Central Government of India International Journal of Scientific Research, Vol : 3, Issue : 7 July 2014

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