Paying Attention to Tax Buoyancy
(Coauthored with Lekha Chakraborty)
Often, fiscal stimulus is launched through the tax side than expenditure side, assuming that the buoyancy of the former will ensure minimum fiscal slippage, while shoving the economy out of a glut. The general idea is that a reduction in rates will increase the ...
Fiscal Monetary Policy Co-ordination:It is worth a relook at what Subir Gokarn said in 2013 RBI report of currency and finance
Economists often trace back the institutional linkages between fiscal and monetary authorities to ‘Unpleasant Monetary Arithmetic’ (UMA) of Thomas J Sargent and Neil Wallace. This UMA regime deals with the question of who “dominates” and who gets the “first-mover advantage” in policy decisions to finance the fiscal deficits. The Reserve ...
(Coauthored with Lekha Chakraborty and MD Azharuddin Khan)
Karnataka is the first state in the country to have introduced a fiscal rules framework, even before the central government had enacted the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. The Karnataka Fiscal Responsibility Act (KFRA) was enacted in 2002 ...
India needs a ‘care economy’ policy
The ‘care economy’ is statistically invisible. No effective macro policy coherence is there to ensure and support care economy in India. More often, women as primary caregivers leave the job market to perform the responsibilities, at the peak of their career. This, in turn, can affect economic growth of the ...
Balancing uncompensated positive externalities and developmental needs of Himalayan States
Ten of the eleven Himalayan and north eastern states came together at a conclave in hill town of Uttarakhand with twin demands from the government of India viz., a separate ministry to deal with problems endemic to them and a ‘green bonus’ in recognition of their contribution to environmental conservation ...