Growth Convergence And Public Finances Of India And Its States

Download or read book Growth Convergence and Public Finances of India and Its States written by Mr. Rajan Govil and published by International Monetary Fund. This book was released on 2024-11-15 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Lack of convergence in per capita income across Indian states requires greater resources for lower-income states for investment and improved public services. Central and state governments need to raise revenue (both tax and non-tax), dismantle the administered pricing mechanism, reduce subsidies, and reorient expenditure toward national and state-level priorities. This is essential to ensure India remains on a sustainable fiscal path with higher growth, given the high public debt at the centre and state level. The observed wide differences in fiscal parameters across states require a tailored policy for each state. The large stock of debt of several states puts at risk the adequate financing of growth-enchancing expenditures.