Fiscal Policy Developments In India 1950 2000

This book traces the evolution of fiscal policy in India during the post-Independence period and describes its present structure. It is designed to interest a cross-section of readership, viz. teachers and students of economics, commerce, law, public administration, and will also serve the needs of legislators, business executives, entrepreneurs and investors, and others interested in money inflows and outflows of the Central and State Governments in India.

This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.