Intergovernmental transfers and fiscal equalization across the north‐eastern states of India
Evidence from panel data
Bibliographic Data
| ID | 12706200 |
|---|---|
| Authors | Gargee Sarmah (0000-0003-4314-4234, Department of Economics Central University of Tamil Nadu Thiruvarur India, corresponding author), Prasant Kumar Panda (0000-0002-2637-4073, Department of Economics Pondicherry University Puducherry India) |
| Year | 2023 |
| Volume | 23 |
| Issue | 4 |
| Publication date | 2023-06-04 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Public Affairs (JOURNAL) |
| Journal identifiers | ISSN: 1472-3891 • E-ISSN: 1479-1854 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/pa.2872 |
| OpenAlex | W4379798309 |
| Language | EN |
| Citations received | 1 |
| References cited | 16 |
While numerous studies have tried to analyze the impact of intergovernmental transfers in fostering fiscal equalization in India, there need to be more studies in the context of north‐eastern (NE) states. Situating in a geographically isolated and economically backward region, the states of NE India depend heavily on central fiscal transfers to meet expenditures and to promote various economic activities in the region. One of the essential objectives of these transfers is to achieve fiscal equity. Hence, the study attempts to analyze the fiscal equalizing nature of the intergovernmental transfers across NE India during 1991–2019. The coefficient of variation (CV) analysis results indicates that although fiscal transfers reduced the magnitude of disparity in the own‐source revenue across the NE states, a significant amount of disparity still exists in the resource base across these states. The regression analysis findings suggest that the transfers across these states need to be more fiscal equalizing. The per capita gross state domestic product emerges as a positive and significant in predicting per capita transfers, and hence it questions the progressivity of central transfers. When assigning the interstate share of transfers, more weight should be placed on fiscal equalizing factors such as per capita income. The Finance Commission of India should emphasize fiscal equalizing criteria when allocating weights and recommending transfers to the NE States. Additionally, states with low incomes should be recognized in plan schemes
Context (archaeology · Decentralization · Econometrics · Economics · Equity (law · Fiscal capacity · fiscal federalism · Fiscal imbalance · Fiscal policy · Fiscal union · Geography · Gross domestic product · Macroeconomics · Panel data · Per capita · Per capita income · Political science · Population · Revenue · Transfer payment · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Finance
Fully modified OLS for heterogeneous cointegrated panels
Statistical Inference in Instrumental Variables Regression with I(1) Processes
Testing for unit roots in heterogeneous panels
An Essay on Fiscal Federalism
An Evaluation of the Stabilization Properties of Equalization in Canada
Incentivizing Fiscal Transfers in the Indian Federation
The political economy of Canadian constitution-making
| Citations per year | 0.33 |
|---|---|
| Citation span | 2023 - 2023 (1) |
| Highly cited | No |