A Very Few States In India, Even After More Than Five Decades Of Planning For Development, Can Hardly Claim To Have Achieved The Path Of Self-Sustained Development. Inter-State Disparities Have Persisted In Spite Of Large Constitutionally Provided Statutory Transfers Through The Finance Commission And Non-Statutory Transfers Through The Planning Commission, Central Ministries And Financial Institutions. The Fiscal Disadvantaged States Have Lagged Behind So Much So That These Are Now Termed As Bimaru States Instead Of Backward States. But No One Has Ever Gone To The Genesis Of The Problem. Today There Is Even A Lurking Voice From The Developed States That The Issue Of Equity Should Be Bidden A Farewell And Instead They Should Be Rewarded For Their Better Fiscal Management. An Important Issue Before The Twelfth Finance Commission, Headed By Dr. C. Rangarajan, Is How To Weigh Equity Vs. Efficiency.In The Present Study The Development Of A State Does Not Represent Simply Its Per Capita Income. It Rather Refers To A Comprehensive Index Of Development Prepared By Simulating 18 Indicators Of Development. Then How Much Additional Public Expenditure Is Required For A State To Cross The Below Average Status Is Another Area Of Concern Of The Present Study. This Has Been Juxtaposed With Relative Fiscal Capacity Of The States To Finance The Required Level Of Public Expenditure. Therefore, The Study Is Useful For Instituting Special Fund For The Development Of States. Then How Has The Transfer Of Resources From The Finance Commission, Planning Commission And The Central Ministries Made Any Dent On The Inter-State Disparities? How Far Are The Different Criteria Adopted By The Finance Commission Responsible For The Unabated Growth Of Inter-State Disparities? Another Area Of Concern Of The Present Study Is The Transfer Of Financial Resources To Different States From The Non-Budgetary Sources Like Banks And The Other Financial Institutions.

The design of intergovernmental fiscal transfers has a strong bearing on efficiency and equity of public service provision and accountable local governance. This book provides a comprehensive one-stop window/source of materials to guide practitioners and scholars on design and worldwide practices in intergovernmental fiscal transfers and their implications for efficiency, and equity in public services provision as well as accountable governance.

This bookexamines inclusive growth in a range of social and economic areas in India, including physical infrastructure, vulnerable sections of the population and underdeveloped states. It provides a comprehensive study of disparity and deepens insight into understanding processes of economic and social development.

Contributed articles presented at the National Seminar on Recommendations of the Twelfth Finance Commission and their Implications for the State Finances, on 6th and 7th May 2005 at Giri Institute of Development Studies.

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Ever Since The Structural Adjustment Programme Of 1991, The Concern About The Ever Growing Size Of Fiscal Deficit Has Developed. In The Early Eighties It Was Only The Central Government Which Was Suffering From The Malaise Of Deficit Budget, But Since Then The States Have Also Gone Deeper And Deeper Into The Fiscal Crisis So Much So That The Revenue Expenditure Gap Which They Are Experiencing Now Has Become Unsustainable. The Book Provides Both A Theoretical Background And The Empirical Evidence Pertaining To Many States In The Country Insofar As Explicit Explanation Of A Deficit Budget Is Concerned. The Book Illustrates The Various Concepts Of Deficit Which Are Currently In Vogue, Viz., Revenue Deficit, Capital Deficit, Budget Deficit, Fiscal Deficit, Primary Deficit, Net Fiscal Deficit, Net Primary Deficit, Monetized Deficit, Structural Deficit, Etc. Each Concept Has Its Own Merits And Demerits And For The Sound Management Of State Finances, Their Proper Interpretation Is The Pre-Requisite. The Various Articles Published In This Book Have Been Written By Various Economists Working In The Various Universities And Research Institutes In Their Chosen Field Of Research.An Attempt Has Been Made In This Book To Identify Theoretically As Well As Empirically The Factors Which Have Led To The Present Stage Of Impasse In Fiscal Crisis Both At The Centre And At The Level Of Various States. Some Articles In The Book Go Even Beyond That And Try To Provide Useful Solutions Both In The Short-Run And In The Long-Run.

Chapter 1 INTRODUCTION -- chapter 2 The geography and the political economy of Punjab: an historical overview of Punjab-centre relations -- chapter 3 Federalism, nationalism and India's development strategy: an historical overview and analytical framework -- chapter 4 Federal financial relations in India and their implications for centre-Punjab financial relations -- chapter 5 CENTRE-STATE RELATIONS IN AGRICULTURE AND THEIR IMPLICATIONS FOR PUNJAB AGRICULTURE -- chapter 6 CENTRE-STATE RELATIONS IN INDUSTRY AND THEIR IMPLICATIONS FOR THE PATTERN OF INDUSTRIAL DEVELOPMENT IN PUNJAB -- chapter 7 SUMMARY AND CONCLUSIONS.

Traditionally The Term Public Finance Has Been Applied To The Package Of Those Policies And Operations Which Involve The Use Of Tax And Expenditure Measures, While Budgetary Policy Is An Important Part To Understand The Basic Problems Of Use Of Resources, Distribution Of Income, Etc. There Is A Vast Array Of Fiscal Institutions Tax Systems, Expenditure Programmes, Budgetary Procedures, Stabilization Instruments, Public Debt Policies, Level Of Government, Etc., Which Raise A Spectrum Of Issues Arising From The Operation Of These Institutions. Further, The Existence Of Externalities, Concern For Adjustment In The Distribution Of Income And Wealth, Removal Of Poverty, Etc., Require Political Process For Their Solutions In A Manner Which Combines Individual Freedom And Justice. The Problem Of Allocation Of Resources Between Public Goods And Private Goods Is A Perennial Problem. Then In A Democracy There Is A Political Process Of Voting To Decide About The Budgetary Policy To Be Adopted. Therefore, Now More Attention Is Paid To A Wider Coverage Of Government Activities Relating To Financial Aspects And The Subject Is Known As Public Economics .The Present Book Is An Excellent Presentation Of Fiscal Institutions And A Careful Analysis Of The Issues Underlining Budgetary Policies In General And Indian Experience In Particular. Based On The Curriculum Prescribed By The University Grants Commission (Ugc), It Ideally Caters To The Academic Needs Of Postgraduate Students Of Public Economics. Apart From The Traditional Topics Of Public Finance, I.E. Taxation, Public Expenditure, Public Debt, Fiscal Policy, Federalism, Etc., The Book Contains Chapters On Public Sector Vs. Private Sector, Theory Of Public Choice And Changing Perspective About The Role Of The Government. Special Focus Of The Book Is On Indian Public Finances Including The Fiscal Crisis Of 1991 And Fiscal Sector Reforms.

This book discusses various dimensions of Indian fiscal federalism, focusing on the current fiscal imbalances – both vertical and horizontal – and their correction. Throwing light on different angles of this subject, it presents well-researched papers, which are divided into three sections. The first section, ‘Fiscal federalism and resolving the fiscal imbalances’, includes five chapters that discuss this theme and also explain the various strategies to remove the existing imbalances in India. ‘Fiscal decentralization for high growth’ which is the second section, explains how decentralisation leads to high economic growth and showcases empirical evidence from a few Indian states that are flourishing due to this policy. The third section, ‘Emerging issues’ offers six chapters describing several existing key concerns in fiscal federalism that have a major impact on achieving India’s development goals. Including contributions from leading academics in this field, the book will be of great interest to research scholars and policy makers alike. “Besides addressing the core issue of fiscal imbalances and ways to correct them, the [chapters] touch on several issues confronting the Indian fiscal system at the centre , state and local levels. The [chapters] are well researched and well argued. The book is a valuable addition to the literature on Fiscal Federalism.” – Dr. C. Rangarajan, Ex-Governor of Reserve Bank of India; Chairman, Madras School of Economics, Chennai, India.

For many years, agricultural development in Punjab symbolised one of the most successful experiments in rural development. However, this success story seems to be going astray. The crux of the problem, this volume suggests, is that externally driven modernization to meet national food needs pushed Punjab into highly specialized production of wheat and rice, resulting in over-utilisation of natural resources with adverse environmental consequences that jeopardizing the long-term viability and sustainability of the agrarian economy. Stagnating productivity, reduced farm size, falling household incomes, depleting groundwater resources, are only a few of the problems that characterise Punjab’s agriculture today. The book establishes clearly that rural development implies more than transformation of traditional agriculture. Apart from ensuring efficient use of limited resources to sustain agricultural production, rural policy should encompass promotion of non-farm activities, investments in social and economic structure and civic amenities.