Fiscal Consolidation in India : The Way Forward

Authors

  •   Deepa Gupta Associate Professor, Symbiosis School of Banking & Finance, Gram Lavale, Taluka Mulshi, Pune - 412 115, Maharashtra
  •   Madhura Bedarkar Assistant Professor, Symbiosis Institute of Business Management, Gram Lavale, Taluka Mulshi, Pune - 412 115, Maharashtra

DOI:

https://doi.org/10.17010/ijf/2016/v10i12/106882

Keywords:

Fiscal Policy

, Fiscal Deficit, Fiscal Sustainability, Public Debt

E62

, E61, H63

Paper Submission Date

, January 8, 2016, Paper sent back for Revision, September 1, Paper Acceptance Date, November 10, 2016.

Abstract

The magnitude of fiscal deficit has always been a cause of concern for policy makers in India. The first step towards fiscal consolidation in India began with implementation of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 and Fiscal Regulatory Legislation (FSL). Further, the Twelfth Finance Commission proposed incentives for State Governments in order to bring in fiscal discipline at the state level. This paper examined the long term profile and impact of high fiscal deficit, consequent debt to GDP ratio, and the need for fiscal consolidation in India. It also presented the reasons behind non- attainment of the fiscal targets set under the FRBM bill. The paper aimed to contribute to the policy debate on fiscal consolidation in India.

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Published

2016-12-01

How to Cite

Gupta, D., & Bedarkar, M. (2016). Fiscal Consolidation in India : The Way Forward. Indian Journal of Finance, 10(12), 29–38. https://doi.org/10.17010/ijf/2016/v10i12/106882

Issue

Volume 10, Issue 12, December 2016

Section

Articles
Crossref
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Europe PMC

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