Intergovernmental Transfers: Rationale, Design and Indian Experience
نویسندگان
چکیده
Intergovernmental transfers have been employed in all federations to achieve a variety of political and economic objectives. However, an emphasis on economic objectives helps to focus the analysis on the ideal design of the transfer schemes and the departures from this can then be analysed in terms of various non-economic (political) objectives. In this paper, we present the economic rationale for transfers, analyse their appropriate design to fulfil the stated economic objectives and, within this conceptual framework, evaluate some aspects of the prevailing transfer systems in India. We highlight some of the vertical and horizontal fiscal imbalances in the Indian federal system, and discuss how a transfer system might deal with them. * This paper is part of a larger, ongoing study of Indian federalism. The second author would like to gratefully acknowledge the hospitality and support of the Research School of Pacific and Asian Studies at the Australian National University (Summer 1997), and the Center for Research on Economic Development and Policy Reform at Stanford University (Fall 1998), where his stays as Visiting Fellow have provided congenial environments for the research reported here. We are also grateful for financial support from our respective institutions, ANU and UCSC. Finally, we benefited greatly from the detailed comments of Nick Hope, though he is blameless for remaining shortcomings. + Respective affiliations: Rao Australia South Asia Research Centre, Research School of Pacific and Asian Studies, Australian National University, and (from Dec. 22) Director, Institute for Social and Economic Change, Bangalore, India; Singh Department of Economics, University of California at Santa Cruz, and Visiting Fellow, Center for Research on Economic Development and Policy Reform, Stanford University.
منابع مشابه
Intergovernmental Fiscal Transfers in Asia 2 Intergovernmental Fiscal Transfers : Concepts , International Practice , and Policy Issues
There is a large conceptual and empirical literature on intergovernmental fiscal transfers. Drawing on this work and examples from various countries, we provide in this chapter a broad overview of the theory and practice of intergovernmental transfers, with particular focus on developing countries. We begin with a review of the main objectives of intergovernmental transfers and the criteria use...
متن کاملبررسی انواع کمکهای بودجهای دولت به شهرداریها (دولتهای محلی) در ایران
Central governments finance local government's expenditures in different ways. These different ways of financing emerge different types of intergovernmental grants that have special effect discussed in the literature. Non Earmarked grants, Earmarked grants, matching and none matching grants are some kinds of these grants. Central governments commonly have used these kinds of grants to access ...
متن کاملAn Analysis of Explicit and Implicit Intergovernmental Transfers in India
In this paper, we provide a critical overview of central-state transfers in India. In addition to examining explicit transfers through the Finance Commission, Planning Commission and central ministries, we also analyze implicit transfers that operate through inter-state tax exportation and subsidized lending to the states. We quantify equity impacts of these transfers, finding that formula-base...
متن کاملFiscal Federalism in Russia: a Canadian Perspective
This paper considers the key instrumental components of intergovernmental fiscal relations in the Russian Federation – expenditures, revenues, transfers, borrowing, and institutional arrangements – in comparison both to Canada’s lengthy experience with federalism and to a framework developed on the basis of previous work on fiscal federalism in a variety of transitional and developing countries. .
متن کامل