TITLE

PUBLIC EXPENDITURE, PRIVATE INVESTMENT AND INCOME: EVIDENCE IN INDIAN STATES

AUTHOR(S)
Mallick, Jagannath
PUB. DATE
March 2013
SOURCE
Journal of Developing Areas;Spring2013, Vol. 47 Issue 1, p181
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The Fiscal Responsibility and Budget Management (FRBM) Act 2003 was introduced in India in order to reduce revenue deficit by curtailing revenue expenditure. This paper examines the impact of public expenditure by type and nature on the income by constructing new data on combined capital expenditure and combined revenue expenditure of Centre and State governments of 15 major States during the period 1993-94 to 2004-05. This paper finds that, though public expenditure crowds-out private investment, public expenditure of all types and nature positively contributes to state income due to the inclusion of some productive expenditure in the revenue account. All revenue expenditures are not growth retarding, and specifically, infrastructure investment may be used as an instrument by the Central and State governments directly for equitable allocation of private investment to achieve balanced income across states and higher economic growth as a whole.
ACCESSION #
89484628

 

Related Articles

  • A New Crop Of Consumers. Thottam, Jyoti // Time International (Asia Edition);5/23/2011, Vol. 177 Issue 21, p43 

    The article reports on the increased effort exerted by India to improve the income of the rural poor. According to the author, despite an eight percent economic growth recorded by the country in the early part of 2011, the income gap between urban and rural residents continues to widen. He...

  • A STUDY OF DRIVERS, IMPACT, AND PATTERN OF FOREIGN DIRECT INVESTMENT IN INDIA. Khan, Mohammad Iftekhar; Banerji, l. Amit // Journal of Developing Areas;Fall2014, Vol. 48 Issue 4, p327 

    Till 1991, there was excessive control of Government over economy with inward looking policies leading to over protection of economy leading todeterioration of trade, economic growth and large fiscal deficits financed by external borrowings. Foreign currency reserves plummeted to very low...

  • Fears over Yuan exaggerated.  // India Today;8/31/2015, p1 

    The article discusses economic condition of India and the impact of global recessions on it and offers suggestion regarding economic policy. Topics include the attempt of Chinese authorities for allowing Chinese currency the Yuan to fall; the macro-economic indicators which shows the growth in...

  • INTERROGATING INCLUSIVE GROWTH: SOME REFLECTIONS ON EXCLUSIONARY GROWTH AND PROSPECTS FOR INCLUSIVE DEVELOPMENT IN INDIA. Kannan, K. P. // Indian Journal of Labour Economics;Jan-Mar2007, Vol. 50 Issue 1, p17 

    Despite the high growth performance of the Indian economy in recent years, the continuing high incidence of poverty and other forms of deprivation as well as a slowdown in agriculture resulting in despair and the death of farmers has prompted the planners in India to advocate 'inclusive growth'....

  • Economic Policy: Fiscal Situation - Recent Developments.  // India Country Monitor;Jan2012, p16 

    The article reports on the developments economic policy in India particularly on fiscal situation. It notes that the United Progressive Alliance (UPA) has passed a budget which tightens fiscal policy and avoid bold statements. It cites several of the policies including lower taxes for the middle...

  • From the Editor's Desk... Sethi, Nandita // Journal of International Economics (0976-0792);Jan-Jun2012, Vol. 3 Issue 1, p2 

    The article describes the growth of the Indian economy, which continues to prevail from 2012 through 2013 despite recessions in Europe and the U.S. According to the International Monetary Fund (IMF), the economy will be able to achieve a 6.9% growth in 2012 if key economic reforms are...

  • Central Government Revenue and Expenditure Relationship in Indian Economy: An Alternative Approach Based on Beveridge-Nelson Decomposition. Sikdar, Suman; Mukhopadhyay, C. K. // IUP Journal of Public Finance;Feb2012, p46 

    This paper examines the Granger causal relation between government revenue and expenditure over the period 1971-2010. The study emphasizes on the idea that the relationship can truly be captured when the relation between anticipated parts and that between unanticipated parts of the variable are...

  • e-Choupal: Hope or Hype? Dangi, Neeraj; Singh, Harjit // American Journal of Economics & Business Administration;2010, Vol. 2 Issue 2, p179 

    The article presents a study which examines the cost-benefit factor of the e-Choupal model in rural India. It seeks to identify the role of information and communication technologies (ICT) and government policies from the context of rural India through a socio-economic analysis. It also compares...

  • ASEAN TAKES OFF WITH INDIA. Swartzentruber, David // ASEANAffairs;Jul/Aug2010, Vol. 4 Issue 4, p36 

    The article focuses on the economic development of India. It discusses the country's business opportunities particularly the India-Asean trade and investment linkages wherein the said linkages will increase in number and scope in 2015 with the start of the Asean Economic Community. It also...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics