Partisan Politics and Intergovernmental Transfers in India

Recently there has been a surge in international empirical evidence that national policymakers allocate resources across regions based on political considerations, in addition to any normative considerations of equity and efficiency. In order to mi...

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Main Author: Khemani, Stuti
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2003/04/2280438/partisan-politics-intergovernmental-transfers-india
http://hdl.handle.net/10986/18257
id okr-10986-18257
recordtype oai_dc
spelling okr-10986-182572021-04-23T14:03:42Z Partisan Politics and Intergovernmental Transfers in India Khemani, Stuti POLITICS INTERGOVERNMENTAL TRANSFER OF FUNDS INTERGOVERNMENTAL TRANSFERS ALLOCATION OF RESOURCES POLITICAL DECISION MAKING REGIONAL ECONOMIC DISPARITIES REGIONAL DISPARITY CONSTITUTIONAL GUARANTEES CONSTITUTIONALISM POLITICAL PARTIES FISCAL FEDERALISM AUTHORITY CENTRAL AGENCIES CENTRAL GOVERNMENT CENTRAL TRANSFERS CITIZENS COALITIONS CONSTITUENCIES CONSTITUTION DECISION-MAKING DECISION-MAKING PROCESS DECREE DEMOCRACY DEVOLUTION DISTRICT GOVERNMENTS DISTRICTS ELECTORAL COMPETITION ELECTORAL POLITICS EXPENDITURE FEDERAL GOVERNMENT FEDERALISM FEDERATIONS FINANCIAL ASSISTANCE FISCAL FISCAL EQUALIZATION FISCAL FEDERALISM FISCAL RESOURCES FISCAL YEAR FORMAL INSTITUTIONS GOVERNMENT AGENCIES GOVERNMENT BUDGETS GRANT ALLOCATION INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL FRAMEWORK INTERGOVERNMENTAL TRANSFERS LEGISLATORS LEGISLATURE LEGISLATURES LOCAL GOVERNMENTS MINISTERS NATIONAL ELECTIONS PARTY AFFILIATION PER CAPITA INCOME POLITICAL CONTROL POLITICIANS PROVINCES PUBLIC RESOURCES PUBLIC SERVICES PUBLIC SPENDING RESERVE BANK OF INDIA RESOURCE ALLOCATION REVENUE MOBILIZATION REVENUE SHARING REVENUE TRANSFERS SOCIAL ASSISTANCE SOCIAL WELFARE STATE BUDGETS STATE BUREAUCRACY STATE ELECTIONS STATE GOVERNMENT STATE GOVERNMENTS STATE INCOME STATE REVENUES TAX EFFORTS TAX SYSTEM TAXATION VOTERS VOTING FISCAL FEDERALISM AUTHORITY Recently there has been a surge in international empirical evidence that national policymakers allocate resources across regions based on political considerations, in addition to any normative considerations of equity and efficiency. In order to mitigate these political compulsions, several federations around the world have attempted to create independent constitutional bodies that are responsible for determining federal transfers to subnational jurisdictions. The author tests whether constitutional rules indeed make a difference in curbing political influence by contrasting the impact of political variables on two types of intergovernmental transfers to states in the Indian federation over a period of time, 1972-95. The pattern of evidence shows that transfers, whose regional distribution is determined by political agents, usually provide greater resources to state governments that are politically affiliated with the national ruling party and are important in maximizing the party's representation in the national legislature. But the political effect on statutory transfers, determined by an independent agency with constitutional authority, is strikingly contrary, with greater resources going to unaffiliated state governments. The author argues that this contrasting evidence indicates that constitutional rules indeed restrict the extent to which partisan politics can affect resources available to subnational governments. 2014-05-12T18:24:27Z 2014-05-12T18:24:27Z 2003-04 http://documents.worldbank.org/curated/en/2003/04/2280438/partisan-politics-intergovernmental-transfers-india http://hdl.handle.net/10986/18257 English en_US Policy Research Working Paper;No. 3016 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India
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 POLITICS
INTERGOVERNMENTAL TRANSFER OF FUNDS
INTERGOVERNMENTAL TRANSFERS
ALLOCATION OF RESOURCES
POLITICAL DECISION MAKING
REGIONAL ECONOMIC DISPARITIES
REGIONAL DISPARITY
CONSTITUTIONAL GUARANTEES
CONSTITUTIONALISM
POLITICAL PARTIES
FISCAL FEDERALISM AUTHORITY
CENTRAL AGENCIES
CENTRAL GOVERNMENT
CENTRAL TRANSFERS
CITIZENS
COALITIONS
CONSTITUENCIES
CONSTITUTION
DECISION-MAKING
DECISION-MAKING PROCESS
DECREE
DEMOCRACY
DEVOLUTION
DISTRICT GOVERNMENTS
DISTRICTS
ELECTORAL COMPETITION
ELECTORAL POLITICS
EXPENDITURE
FEDERAL GOVERNMENT
FEDERALISM
FEDERATIONS
FINANCIAL ASSISTANCE
FISCAL
FISCAL EQUALIZATION
FISCAL FEDERALISM
FISCAL RESOURCES
FISCAL YEAR
FORMAL INSTITUTIONS
GOVERNMENT AGENCIES
GOVERNMENT BUDGETS
GRANT ALLOCATION
INSTITUTIONAL ARRANGEMENTS
INSTITUTIONAL FRAMEWORK
INTERGOVERNMENTAL TRANSFERS
LEGISLATORS
LEGISLATURE
LEGISLATURES
LOCAL GOVERNMENTS
MINISTERS
NATIONAL ELECTIONS
PARTY AFFILIATION
PER CAPITA INCOME
POLITICAL CONTROL
POLITICIANS
PROVINCES
PUBLIC RESOURCES
PUBLIC SERVICES
PUBLIC SPENDING
RESERVE BANK OF INDIA
RESOURCE ALLOCATION
REVENUE MOBILIZATION
REVENUE SHARING
REVENUE TRANSFERS
SOCIAL ASSISTANCE
SOCIAL WELFARE
STATE BUDGETS
STATE BUREAUCRACY
STATE ELECTIONS
STATE GOVERNMENT
STATE GOVERNMENTS
STATE INCOME
STATE REVENUES
TAX EFFORTS
TAX SYSTEM
TAXATION
VOTERS
VOTING
FISCAL FEDERALISM
AUTHORITY
spellingShingle POLITICS
INTERGOVERNMENTAL TRANSFER OF FUNDS
INTERGOVERNMENTAL TRANSFERS
ALLOCATION OF RESOURCES
POLITICAL DECISION MAKING
REGIONAL ECONOMIC DISPARITIES
REGIONAL DISPARITY
CONSTITUTIONAL GUARANTEES
CONSTITUTIONALISM
POLITICAL PARTIES
FISCAL FEDERALISM AUTHORITY
CENTRAL AGENCIES
CENTRAL GOVERNMENT
CENTRAL TRANSFERS
CITIZENS
COALITIONS
CONSTITUENCIES
CONSTITUTION
DECISION-MAKING
DECISION-MAKING PROCESS
DECREE
DEMOCRACY
DEVOLUTION
DISTRICT GOVERNMENTS
DISTRICTS
ELECTORAL COMPETITION
ELECTORAL POLITICS
EXPENDITURE
FEDERAL GOVERNMENT
FEDERALISM
FEDERATIONS
FINANCIAL ASSISTANCE
FISCAL
FISCAL EQUALIZATION
FISCAL FEDERALISM
FISCAL RESOURCES
FISCAL YEAR
FORMAL INSTITUTIONS
GOVERNMENT AGENCIES
GOVERNMENT BUDGETS
GRANT ALLOCATION
INSTITUTIONAL ARRANGEMENTS
INSTITUTIONAL FRAMEWORK
INTERGOVERNMENTAL TRANSFERS
LEGISLATORS
LEGISLATURE
LEGISLATURES
LOCAL GOVERNMENTS
MINISTERS
NATIONAL ELECTIONS
PARTY AFFILIATION
PER CAPITA INCOME
POLITICAL CONTROL
POLITICIANS
PROVINCES
PUBLIC RESOURCES
PUBLIC SERVICES
PUBLIC SPENDING
RESERVE BANK OF INDIA
RESOURCE ALLOCATION
REVENUE MOBILIZATION
REVENUE SHARING
REVENUE TRANSFERS
SOCIAL ASSISTANCE
SOCIAL WELFARE
STATE BUDGETS
STATE BUREAUCRACY
STATE ELECTIONS
STATE GOVERNMENT
STATE GOVERNMENTS
STATE INCOME
STATE REVENUES
TAX EFFORTS
TAX SYSTEM
TAXATION
VOTERS
VOTING
FISCAL FEDERALISM
AUTHORITY
Khemani, Stuti
Partisan Politics and Intergovernmental Transfers in India
geographic_facet South Asia
India
relation Policy Research Working Paper;No. 3016
description Recently there has been a surge in international empirical evidence that national policymakers allocate resources across regions based on political considerations, in addition to any normative considerations of equity and efficiency. In order to mitigate these political compulsions, several federations around the world have attempted to create independent constitutional bodies that are responsible for determining federal transfers to subnational jurisdictions. The author tests whether constitutional rules indeed make a difference in curbing political influence by contrasting the impact of political variables on two types of intergovernmental transfers to states in the Indian federation over a period of time, 1972-95. The pattern of evidence shows that transfers, whose regional distribution is determined by political agents, usually provide greater resources to state governments that are politically affiliated with the national ruling party and are important in maximizing the party's representation in the national legislature. But the political effect on statutory transfers, determined by an independent agency with constitutional authority, is strikingly contrary, with greater resources going to unaffiliated state governments. The author argues that this contrasting evidence indicates that constitutional rules indeed restrict the extent to which partisan politics can affect resources available to subnational governments.
format Publications & Research :: Policy Research Working Paper
author Khemani, Stuti
author_facet Khemani, Stuti
author_sort Khemani, Stuti
title Partisan Politics and Intergovernmental Transfers in India
title_short Partisan Politics and Intergovernmental Transfers in India
title_full Partisan Politics and Intergovernmental Transfers in India
title_fullStr Partisan Politics and Intergovernmental Transfers in India
title_full_unstemmed Partisan Politics and Intergovernmental Transfers in India
title_sort partisan politics and intergovernmental transfers in india
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2003/04/2280438/partisan-politics-intergovernmental-transfers-india
http://hdl.handle.net/10986/18257
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