
doi: 10.2139/ssrn.1282267
handle: 10419/83868 , 10419/64113
This paper surveys the state of fiscal federalism in India, in the broader context of decentralization. We begin with an overview of the basic features and recent developments in the intergovernmental fiscal relations, including the role of political institutions, the specifics of legislative and budgetary autonomy, assignments of expenditure responsibility and revenue authority, revenue collection mechanisms, the system of intergovernmental transfers, and institutions and mechanisms for borrowing by subnational units. We then provide a diagnosis of accountability mechanisms, examining their quality of functioning and distortions and constraints. In particular, we analyze to what extent, and through what mechanisms, lower-level governments are held accountable to higher-level governments, the extent to which policies of subnational governments to credit ratings and bond yields, and the accountability in the provision of subnational public goods. Next, we review the implications of the intergovernmental system and accountability mechanisms on the cooperation of subnational governments and the quality of service delivery. We examine the resources and capacity of the subnational entities that are responsible for key services such as water, sanitation, education and health care, and the impacts of decentralization of service quality and the distribution of benefits among elected officials, citizens and interest groups. Finally, we offer a concluding assessment with suggestions for reform priorities.
Property Rights, Finanzföderalismus, decentralization, H4 - Publicly Provided Goods, service delivery, Intergovernmental Relations, intergovernmental, P26, P26 - Political Economy, federalism; decentralization; intergovernmental relations; economic reform; accountability; service delivery, federalism, economic reform, Indien, P35 - Public Economics, and Revenue, Dezentralisierung, H2 - Taxation, Subsidies, ddc:330, Wirtschaftsreform, P35, accountability, H1, H7 - State and Local Government, federalism, decentralization, intergovernmental relations, economic reform, accountability, service delivery, intergovernmental relations, H7, H1 - Structure and Scope of Government, jel: jel:P26, jel: jel:H1, jel: jel:H2, jel: jel:H4, jel: jel:H7, jel: jel:P35
Property Rights, Finanzföderalismus, decentralization, H4 - Publicly Provided Goods, service delivery, Intergovernmental Relations, intergovernmental, P26, P26 - Political Economy, federalism; decentralization; intergovernmental relations; economic reform; accountability; service delivery, federalism, economic reform, Indien, P35 - Public Economics, and Revenue, Dezentralisierung, H2 - Taxation, Subsidies, ddc:330, Wirtschaftsreform, P35, accountability, H1, H7 - State and Local Government, federalism, decentralization, intergovernmental relations, economic reform, accountability, service delivery, intergovernmental relations, H7, H1 - Structure and Scope of Government, jel: jel:P26, jel: jel:H1, jel: jel:H2, jel: jel:H4, jel: jel:H7, jel: jel:P35
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