Twenty five years ago, I argued in my doctoral thesis that fiscal policy could be used to map changes in state objectives. In essence that is what I am doing in this column. I contend that the Indian State, at both the central and state levels, is transitioning from …

The second theorem of welfare economics posits that any desired income distribution can be achieved when an economy is at full potential by taxing those who earn more than society wishes and transferring these to those who earn less. I have previously argued that universal basic income proposals essentially …

Election year should be a time when we seriously reflect on the medium term structure of fiscal policy. But election year also involves an interim budget which, by definition, should not take up much analytical space. But unfortunately, it does, distracting attention from medium term fiscal issues. 

 

Volatility in intergovernmental fiscal transfers has had significant impact on the forecasts of public deficits by state governments.

 

Does the ministry of finance produce biased budget forecasts in India? Does the electoral cycle predominantly determine the fiscal behaviour of the Centre? The answers …

Several commentators and economists have expressed concerns about the arithmetic underlying the government’s fiscal deficit calculations, spurred by a recent report by the Comptroller and auditor general (CAG). 

 

The report points out that 1) government has not reimbursed the Food Corporation of India and fertiliser companies …