"The Dynamics of Reform of India's Federal System"

Abstract

This paper analyzes the process of reform of India's federal system, with a focus on fiscal federalism. We first summarize the basic features of, and recent reforms in intergovernmental relations, including the role of political institutions, assignments of expenditure responsibility and revenue authority, the system of intergovernmental transfers, and institutions and mechanisms for government borrowing. We then discuss the institutional specifics of the reform process, to understand the dynamics of India's federal system. JEL codes: P26, P35, H1, H7

Federalism and Economic Development in India

“…These, recommendations, together with a process of political bargaining then influence the legislative agenda, often toward significant modification (Rao and Singh, 2006;Singh, 2007b). Fiscal responsibility legislation is an example of this process.…”