Skip to content Skip to navigation

Fiscal Policy in India: Lessons and Priorities

Feb 2004
Stanford King Center on Global Development Working Paper
By  Nirvikar Singh, T. N. Srinivasan

This paper assesses India's current fiscal situation, its likely future evolution, and impact on the economy. We examine possible reforms of macroeconomic policy (including fiscal, monetary and exchange rate policy) and broader institutional reforms that will bear on the macroeconomic situation. We also consider the political feasibility of possible reforms. We examine both medium and longer run scenarios, and fiscal sustainability and adjustment going beyond conventional government budget deficits, to include off-budget liabilities, both actual and contingent. We conclude with our assessment of reforms focused on improving the fisc.