Stabilization and Fiscal Empowerment : The Twin Challenges Facing India's States, Volume 1. Executive Summary and Main Report
India, home to more than one billion people, has experienced rapid growth over the past decade, averaging about six percent per year between 1992/93 and 2003/04. The agenda backed in this report is one that receives widespread support from both the...
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| Format: | Other Infrastructure Study |
| Language: | English en_US |
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Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2004/05/18526102/stabilization-fiscal-empowerment-twin-challenges-facing-indias-states-vol-1-2-executive-summary-main-report http://hdl.handle.net/10986/16776 |
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okr-10986-16776 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTABILITY ACCOUNTING AGGREGATE EXPENDITURE AGGREGATE FISCAL AGGREGATE LIMITS ALLOCATION ARREARS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISIS BALANCE-OF-PAYMENTS CRISIS BANKRUPTCY BUDGET CONSTRAINTS BUDGET ESTIMATES BUDGET PERIOD BUDGETARY PROCESS CAPITAL EXPENDITURE CAPITAL EXPENDITURES CAPITAL PROJECTS CAPITAL SPENDING CD CENTRAL CONTROLS CENTRAL GOVERNMENT CENTRAL GOVERNMENT GUARANTEE CIVIL SERVANTS CIVIL SERVICE CLAIMANTS COST RECOVERY COST-RECOVERY CREDIBILITY CREDIT RATING CREDITOR CREDITWORTHINESS CURRENCY CYCLICAL FACTORS DEBT DEBT BURDEN DEBT LEVELS DEBT LIMIT DEBT RATIO DEBT SERVICE DEBT SERVICES DEBT SERVICING DEBT STOCK DEBT STOCKS DECENTRALIZATION DECISION-MAKING DECISION-MAKING PROCESSES DEFICIT REDUCTION DEFICIT REDUCTION TARGETS DEVELOPING COUNTRY DISCOUNT RATES DOMESTIC BORROWING ECONOMIC GROWTH EDUCATION EXPENDITURES EFFECTIVENESS OF GOVERNMENT EFFECTIVENESS OF GOVERNMENT SPENDING EFFICIENCY GAINS ENABLING ENVIRONMENT EXPENDITURE CATEGORIES EXPENDITURE CUTS EXPENDITURE GROWTH EXPENDITURE ISSUES EXPENDITURE ITEM EXPENDITURE PRODUCTIVITY EXPENDITURE RESPONSIBILITIES EXPENDITURES EXTERNAL FUNDING FINANCES FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL MANAGEMENT FINANCIAL REPRESSION FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL CONSOLIDATION FISCAL COSTS FISCAL CRISIS FISCAL DEFICIT FISCAL DEFICIT TARGET FISCAL DEFICITS FISCAL FEDERALISM FISCAL FRAMEWORK FISCAL HEALTH FISCAL IMBALANCES FISCAL IMPACT FISCAL PERFORMANCE FISCAL POLICY FISCAL REFORM FISCAL REFORMS FISCAL SAVINGS FISCAL STABILIZATION FISCAL STANCE FISCAL SUSTAINABILITY FISCAL SYSTEM FISCAL TARGETS FISCAL VULNERABILITY GOVERNMENT BORROWING GOVERNMENT EXPENDITURE GOVERNMENT EXPENDITURES GOVERNMENT GRANTS GOVERNMENT GUARANTEE GOVERNMENT GUARANTEES GOVERNMENT LIABILITIES GOVERNMENT PERFORMANCE GOVERNMENT SPENDING GOVERNMENT SUBSIDY GOVERNMENT SUPPORT GROSS DOMESTIC PRODUCT HARD BUDGET CONSTRAINTS HEALTH EXPENDITURES HEALTH SECTOR HIGHER DEFICITS HIGHER EXPENDITURE HUMAN DEVELOPMENT HUMAN RESOURCES IMPLICIT SUBSIDIES INFLATION INITIAL DEBT INTEREST BURDEN INTEREST PAYMENTS INTEREST RATE INTEREST RATE REGIME INTEREST RATES INTERNATIONAL STANDARDS INVESTMENT CLIMATE INVESTMENT REGIME LENDERS LEVIES LIABILITY LIQUIDITY LOAN LOCAL MARKET LOTTERY MACROECONOMIC STABILITY MARGINAL REDUCTION MARKET BORROWING MARKET FORCES MARKET PRICES MERIT GOOD NET PRESENT VALUE PENSION PENSION SCHEME PENSION SYSTEM PENSIONS PERFORMANCE MEASUREMENT POLITICAL ECONOMY POVERTY IMPACT POVERTY REDUCTION PRIMARY DEFICITS PRIVATE SECTOR PROGRAMS PUBLIC DEBT PUBLIC EDUCATION PUBLIC ENTERPRISE PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC HEALTH PUBLIC HOSPITALS PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING PUBLIC TRANSPORT PUT OPTIONS QUALITY OF PUBLIC SPENDING QUALITY SERVICE QUALITY STANDARDS REAL GROWTH RECURRENT EXPENDITURE RECURRENT EXPENDITURES REFORM AGENDA REFORM EFFORTS REFORM PROGRAM REFORM PROJECT RESERVE RESERVE BANK RETURN REVENUE GROWTH REVENUE INCREASES REVENUE POLICY ROAD MAINTENANCE SALES TAX SALES TAXES SELF-ASSESSMENT SERVICE DELIVERY SERVICE PROVIDERS SERVICE PROVISION SOCIAL INDICATORS SOCIAL OUTCOMES SOCIAL WELFARE SPENDING LEVELS STAMP DUTY STATE GOVERNMENT STATE GOVERNMENTS STATE HIGHWAYS STATE TAX STRUCTURAL ADJUSTMENT STRUCTURAL REFORMS SUB-NATIONAL GOVERNMENTS SWAPS TAX ADMINISTRATION TAX ADMINISTRATION REFORMS TAX BASE TAX EVASION TAX INCENTIVES TAX POLICY TAX RATES TAX REFORM TAX REVENUE TAX REVENUES TAX SYSTEM TAX SYSTEMS TOTAL EXPENDITURE TOTAL SPENDING TRANSPARENCY TYPES OF REFORMS VERTICAL IMBALANCE |
| spellingShingle |
ACCOUNTABILITY ACCOUNTING AGGREGATE EXPENDITURE AGGREGATE FISCAL AGGREGATE LIMITS ALLOCATION ARREARS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISIS BALANCE-OF-PAYMENTS CRISIS BANKRUPTCY BUDGET CONSTRAINTS BUDGET ESTIMATES BUDGET PERIOD BUDGETARY PROCESS CAPITAL EXPENDITURE CAPITAL EXPENDITURES CAPITAL PROJECTS CAPITAL SPENDING CD CENTRAL CONTROLS CENTRAL GOVERNMENT CENTRAL GOVERNMENT GUARANTEE CIVIL SERVANTS CIVIL SERVICE CLAIMANTS COST RECOVERY COST-RECOVERY CREDIBILITY CREDIT RATING CREDITOR CREDITWORTHINESS CURRENCY CYCLICAL FACTORS DEBT DEBT BURDEN DEBT LEVELS DEBT LIMIT DEBT RATIO DEBT SERVICE DEBT SERVICES DEBT SERVICING DEBT STOCK DEBT STOCKS DECENTRALIZATION DECISION-MAKING DECISION-MAKING PROCESSES DEFICIT REDUCTION DEFICIT REDUCTION TARGETS DEVELOPING COUNTRY DISCOUNT RATES DOMESTIC BORROWING ECONOMIC GROWTH EDUCATION EXPENDITURES EFFECTIVENESS OF GOVERNMENT EFFECTIVENESS OF GOVERNMENT SPENDING EFFICIENCY GAINS ENABLING ENVIRONMENT EXPENDITURE CATEGORIES EXPENDITURE CUTS EXPENDITURE GROWTH EXPENDITURE ISSUES EXPENDITURE ITEM EXPENDITURE PRODUCTIVITY EXPENDITURE RESPONSIBILITIES EXPENDITURES EXTERNAL FUNDING FINANCES FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL MANAGEMENT FINANCIAL REPRESSION FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL CONSOLIDATION FISCAL COSTS FISCAL CRISIS FISCAL DEFICIT FISCAL DEFICIT TARGET FISCAL DEFICITS FISCAL FEDERALISM FISCAL FRAMEWORK FISCAL HEALTH FISCAL IMBALANCES FISCAL IMPACT FISCAL PERFORMANCE FISCAL POLICY FISCAL REFORM FISCAL REFORMS FISCAL SAVINGS FISCAL STABILIZATION FISCAL STANCE FISCAL SUSTAINABILITY FISCAL SYSTEM FISCAL TARGETS FISCAL VULNERABILITY GOVERNMENT BORROWING GOVERNMENT EXPENDITURE GOVERNMENT EXPENDITURES GOVERNMENT GRANTS GOVERNMENT GUARANTEE GOVERNMENT GUARANTEES GOVERNMENT LIABILITIES GOVERNMENT PERFORMANCE GOVERNMENT SPENDING GOVERNMENT SUBSIDY GOVERNMENT SUPPORT GROSS DOMESTIC PRODUCT HARD BUDGET CONSTRAINTS HEALTH EXPENDITURES HEALTH SECTOR HIGHER DEFICITS HIGHER EXPENDITURE HUMAN DEVELOPMENT HUMAN RESOURCES IMPLICIT SUBSIDIES INFLATION INITIAL DEBT INTEREST BURDEN INTEREST PAYMENTS INTEREST RATE INTEREST RATE REGIME INTEREST RATES INTERNATIONAL STANDARDS INVESTMENT CLIMATE INVESTMENT REGIME LENDERS LEVIES LIABILITY LIQUIDITY LOAN LOCAL MARKET LOTTERY MACROECONOMIC STABILITY MARGINAL REDUCTION MARKET BORROWING MARKET FORCES MARKET PRICES MERIT GOOD NET PRESENT VALUE PENSION PENSION SCHEME PENSION SYSTEM PENSIONS PERFORMANCE MEASUREMENT POLITICAL ECONOMY POVERTY IMPACT POVERTY REDUCTION PRIMARY DEFICITS PRIVATE SECTOR PROGRAMS PUBLIC DEBT PUBLIC EDUCATION PUBLIC ENTERPRISE PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC HEALTH PUBLIC HOSPITALS PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING PUBLIC TRANSPORT PUT OPTIONS QUALITY OF PUBLIC SPENDING QUALITY SERVICE QUALITY STANDARDS REAL GROWTH RECURRENT EXPENDITURE RECURRENT EXPENDITURES REFORM AGENDA REFORM EFFORTS REFORM PROGRAM REFORM PROJECT RESERVE RESERVE BANK RETURN REVENUE GROWTH REVENUE INCREASES REVENUE POLICY ROAD MAINTENANCE SALES TAX SALES TAXES SELF-ASSESSMENT SERVICE DELIVERY SERVICE PROVIDERS SERVICE PROVISION SOCIAL INDICATORS SOCIAL OUTCOMES SOCIAL WELFARE SPENDING LEVELS STAMP DUTY STATE GOVERNMENT STATE GOVERNMENTS STATE HIGHWAYS STATE TAX STRUCTURAL ADJUSTMENT STRUCTURAL REFORMS SUB-NATIONAL GOVERNMENTS SWAPS TAX ADMINISTRATION TAX ADMINISTRATION REFORMS TAX BASE TAX EVASION TAX INCENTIVES TAX POLICY TAX RATES TAX REFORM TAX REVENUE TAX REVENUES TAX SYSTEM TAX SYSTEMS TOTAL EXPENDITURE TOTAL SPENDING TRANSPARENCY TYPES OF REFORMS VERTICAL IMBALANCE World Bank Stabilization and Fiscal Empowerment : The Twin Challenges Facing India's States, Volume 1. Executive Summary and Main Report |
| geographic_facet |
South Asia India |
| description |
India, home to more than one billion
people, has experienced rapid growth over the past decade,
averaging about six percent per year between 1992/93 and
2003/04. The agenda backed in this report is one that
receives widespread support from both the central and state
governments in India. The fiscal stress of the late nineties
gave rise to an intense state-level reform effort. Six years
on, this report documents the many initiatives undertaken by
the states to restore fiscal sustainability, and become more
effective agents of development. It outlines successes,
lessons learnt, and highlights further challenges, on both
the expenditure side (chapter two) and the revenue side
(chapter three). It also looks at the incentive framework
within which the states operate (chapter four), and asks
whether there is a feasible reform package that will take
the states not only out of fiscal crisis, but strengthened
to meet the development challenges which confront them. This
chapter provides the context for what follows by outlining
the role and increasingly divergent performance of the state
governments (section two), and then in turn, the genesis of
the fiscal crisis (section three), its developmental impact
(section four), the reform response of the state and central
governments (section five), and the reform challenges facing
the states today (section six). Although associated with an
increase in public spending, the fiscal crisis weakened the
developmental and poverty impact of state governments,
especially in the poorer states; it also called into
question India's overall fiscal sustainability. This
report is written to help share the lessons and
success-stories to date, and to assist states and the
central government in implementing the national agenda of
state-level fiscal stabilization and empowerment. Given the
low levels and the worrying recent trends in both the
quantity of expenditure in priority expenditure areas, and
the quality of expenditure across the board, there is an
urgent need for expenditure restructuring to free up fiscal
resources and for reforms to improve the quality of
spending. Focus in this chapter on areas where expenditure
can be cut rather than where it should be increased is not
because we think there are no areas of underfunding.
However, which particular areas should be increased, and by
how much, will likely vary from state to state, depending on
initial conditions, and identified priorities. The areas
where savings can be made have much more in common across
states, and so are the focuses of this report. |
| format |
Economic & Sector Work :: Other Infrastructure Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Stabilization and Fiscal Empowerment : The Twin Challenges Facing India's States, Volume 1. Executive Summary and Main Report |
| title_short |
Stabilization and Fiscal Empowerment : The Twin Challenges Facing India's States, Volume 1. Executive Summary and Main Report |
| title_full |
Stabilization and Fiscal Empowerment : The Twin Challenges Facing India's States, Volume 1. Executive Summary and Main Report |
| title_fullStr |
Stabilization and Fiscal Empowerment : The Twin Challenges Facing India's States, Volume 1. Executive Summary and Main Report |
| title_full_unstemmed |
Stabilization and Fiscal Empowerment : The Twin Challenges Facing India's States, Volume 1. Executive Summary and Main Report |
| title_sort |
stabilization and fiscal empowerment : the twin challenges facing india's states, volume 1. executive summary and main report |
| publisher |
Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2004/05/18526102/stabilization-fiscal-empowerment-twin-challenges-facing-indias-states-vol-1-2-executive-summary-main-report http://hdl.handle.net/10986/16776 |
| _version_ |
1764434447172632576 |
| spelling |
okr-10986-167762021-04-23T14:03:32Z Stabilization and Fiscal Empowerment : The Twin Challenges Facing India's States, Volume 1. Executive Summary and Main Report World Bank ACCOUNTABILITY ACCOUNTING AGGREGATE EXPENDITURE AGGREGATE FISCAL AGGREGATE LIMITS ALLOCATION ARREARS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISIS BALANCE-OF-PAYMENTS CRISIS BANKRUPTCY BUDGET CONSTRAINTS BUDGET ESTIMATES BUDGET PERIOD BUDGETARY PROCESS CAPITAL EXPENDITURE CAPITAL EXPENDITURES CAPITAL PROJECTS CAPITAL SPENDING CD CENTRAL CONTROLS CENTRAL GOVERNMENT CENTRAL GOVERNMENT GUARANTEE CIVIL SERVANTS CIVIL SERVICE CLAIMANTS COST RECOVERY COST-RECOVERY CREDIBILITY CREDIT RATING CREDITOR CREDITWORTHINESS CURRENCY CYCLICAL FACTORS DEBT DEBT BURDEN DEBT LEVELS DEBT LIMIT DEBT RATIO DEBT SERVICE DEBT SERVICES DEBT SERVICING DEBT STOCK DEBT STOCKS DECENTRALIZATION DECISION-MAKING DECISION-MAKING PROCESSES DEFICIT REDUCTION DEFICIT REDUCTION TARGETS DEVELOPING COUNTRY DISCOUNT RATES DOMESTIC BORROWING ECONOMIC GROWTH EDUCATION EXPENDITURES EFFECTIVENESS OF GOVERNMENT EFFECTIVENESS OF GOVERNMENT SPENDING EFFICIENCY GAINS ENABLING ENVIRONMENT EXPENDITURE CATEGORIES EXPENDITURE CUTS EXPENDITURE GROWTH EXPENDITURE ISSUES EXPENDITURE ITEM EXPENDITURE PRODUCTIVITY EXPENDITURE RESPONSIBILITIES EXPENDITURES EXTERNAL FUNDING FINANCES FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL MANAGEMENT FINANCIAL REPRESSION FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL CONSOLIDATION FISCAL COSTS FISCAL CRISIS FISCAL DEFICIT FISCAL DEFICIT TARGET FISCAL DEFICITS FISCAL FEDERALISM FISCAL FRAMEWORK FISCAL HEALTH FISCAL IMBALANCES FISCAL IMPACT FISCAL PERFORMANCE FISCAL POLICY FISCAL REFORM FISCAL REFORMS FISCAL SAVINGS FISCAL STABILIZATION FISCAL STANCE FISCAL SUSTAINABILITY FISCAL SYSTEM FISCAL TARGETS FISCAL VULNERABILITY GOVERNMENT BORROWING GOVERNMENT EXPENDITURE GOVERNMENT EXPENDITURES GOVERNMENT GRANTS GOVERNMENT GUARANTEE GOVERNMENT GUARANTEES GOVERNMENT LIABILITIES GOVERNMENT PERFORMANCE GOVERNMENT SPENDING GOVERNMENT SUBSIDY GOVERNMENT SUPPORT GROSS DOMESTIC PRODUCT HARD BUDGET CONSTRAINTS HEALTH EXPENDITURES HEALTH SECTOR HIGHER DEFICITS HIGHER EXPENDITURE HUMAN DEVELOPMENT HUMAN RESOURCES IMPLICIT SUBSIDIES INFLATION INITIAL DEBT INTEREST BURDEN INTEREST PAYMENTS INTEREST RATE INTEREST RATE REGIME INTEREST RATES INTERNATIONAL STANDARDS INVESTMENT CLIMATE INVESTMENT REGIME LENDERS LEVIES LIABILITY LIQUIDITY LOAN LOCAL MARKET LOTTERY MACROECONOMIC STABILITY MARGINAL REDUCTION MARKET BORROWING MARKET FORCES MARKET PRICES MERIT GOOD NET PRESENT VALUE PENSION PENSION SCHEME PENSION SYSTEM PENSIONS PERFORMANCE MEASUREMENT POLITICAL ECONOMY POVERTY IMPACT POVERTY REDUCTION PRIMARY DEFICITS PRIVATE SECTOR PROGRAMS PUBLIC DEBT PUBLIC EDUCATION PUBLIC ENTERPRISE PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC HEALTH PUBLIC HOSPITALS PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING PUBLIC TRANSPORT PUT OPTIONS QUALITY OF PUBLIC SPENDING QUALITY SERVICE QUALITY STANDARDS REAL GROWTH RECURRENT EXPENDITURE RECURRENT EXPENDITURES REFORM AGENDA REFORM EFFORTS REFORM PROGRAM REFORM PROJECT RESERVE RESERVE BANK RETURN REVENUE GROWTH REVENUE INCREASES REVENUE POLICY ROAD MAINTENANCE SALES TAX SALES TAXES SELF-ASSESSMENT SERVICE DELIVERY SERVICE PROVIDERS SERVICE PROVISION SOCIAL INDICATORS SOCIAL OUTCOMES SOCIAL WELFARE SPENDING LEVELS STAMP DUTY STATE GOVERNMENT STATE GOVERNMENTS STATE HIGHWAYS STATE TAX STRUCTURAL ADJUSTMENT STRUCTURAL REFORMS SUB-NATIONAL GOVERNMENTS SWAPS TAX ADMINISTRATION TAX ADMINISTRATION REFORMS TAX BASE TAX EVASION TAX INCENTIVES TAX POLICY TAX RATES TAX REFORM TAX REVENUE TAX REVENUES TAX SYSTEM TAX SYSTEMS TOTAL EXPENDITURE TOTAL SPENDING TRANSPARENCY TYPES OF REFORMS VERTICAL IMBALANCE India, home to more than one billion people, has experienced rapid growth over the past decade, averaging about six percent per year between 1992/93 and 2003/04. The agenda backed in this report is one that receives widespread support from both the central and state governments in India. The fiscal stress of the late nineties gave rise to an intense state-level reform effort. Six years on, this report documents the many initiatives undertaken by the states to restore fiscal sustainability, and become more effective agents of development. It outlines successes, lessons learnt, and highlights further challenges, on both the expenditure side (chapter two) and the revenue side (chapter three). It also looks at the incentive framework within which the states operate (chapter four), and asks whether there is a feasible reform package that will take the states not only out of fiscal crisis, but strengthened to meet the development challenges which confront them. This chapter provides the context for what follows by outlining the role and increasingly divergent performance of the state governments (section two), and then in turn, the genesis of the fiscal crisis (section three), its developmental impact (section four), the reform response of the state and central governments (section five), and the reform challenges facing the states today (section six). Although associated with an increase in public spending, the fiscal crisis weakened the developmental and poverty impact of state governments, especially in the poorer states; it also called into question India's overall fiscal sustainability. This report is written to help share the lessons and success-stories to date, and to assist states and the central government in implementing the national agenda of state-level fiscal stabilization and empowerment. Given the low levels and the worrying recent trends in both the quantity of expenditure in priority expenditure areas, and the quality of expenditure across the board, there is an urgent need for expenditure restructuring to free up fiscal resources and for reforms to improve the quality of spending. Focus in this chapter on areas where expenditure can be cut rather than where it should be increased is not because we think there are no areas of underfunding. However, which particular areas should be increased, and by how much, will likely vary from state to state, depending on initial conditions, and identified priorities. The areas where savings can be made have much more in common across states, and so are the focuses of this report. 2014-01-31T19:57:35Z 2014-01-31T19:57:35Z 2004-05-10 http://documents.worldbank.org/curated/en/2004/05/18526102/stabilization-fiscal-empowerment-twin-challenges-facing-indias-states-vol-1-2-executive-summary-main-report http://hdl.handle.net/10986/16776 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Other Infrastructure Study Economic & Sector Work South Asia India |