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VOL. 7, ISSUE 2 (2025)
Fiscal situation of Indian States: Patterns and causes since Economic Liberalisation.
Authors
Raminder Singh
Abstract
This study analyses the fiscal performance of
Indian states from 1980 to 2022, examining patterns and underlying causes
within the context of India's federal structure. Using comprehensive
state-level data, the research explores the emergence of fiscal imbalances, the
evolution of central resource devolution, rising debt burdens, and key
legislative and policy responses. The findings indicate that while economic
liberalization initially constrained fiscal space through reduced central
support, a severe fiscal crisis emerged in the late 1990s. Subsequent reforms,
including Fiscal Responsibility Legislation, temporarily contained the crisis.
However, renewed fiscal pressures from stimulus spending during the global
financial crisis, ongoing power sector reforms, and the COVID-19 pandemic have
exacerbated these challenges, underscoring the persistent vulnerability of
state finances
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Pages:85-94
How to cite this article:
Raminder Singh "Fiscal situation of Indian States: Patterns and causes since Economic Liberalisation.". International Journal of Management and Economics, Vol 7, Issue 2, 2025, Pages 85-94
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