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SSRN Electronic Journal
Article . 2007 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2007
Data sources: EconStor
EconStor
Research . 2007
Data sources: EconStor
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Fiscal Federalism and Decentralization in India

Authors: Singh, Nirvikar;

Fiscal Federalism and Decentralization in India

Abstract

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.

Countries
United States, Germany
Keywords

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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    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    8
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
8
Average
Average
Average
Green
bronze