Debt Sustainability at the State Level in India
Published By: Reserve Bank of India | Published Date: July, 01 , 2014The debt position of the state governments in India, which deteriorated sharply between 1997-98 and 2003-04, has witnessed significant improvement since 2004-05, reflecting the impact of both favourable macroeconomic conditions and policy efforts by the Central and state governments. The debt sustainability analysis carried out in the paper, based on empirical estimation of inter-temporal budget constraint and fiscal policy response function in a panel data framework, covering 20 Indian states for the period 1980-81 to 2012-13, indicates that the debt position at the state level is sustainable in the long run.
Author(s): Atri Mukherjee, Balbir Kaur, Neeraj Kumar, Anand Prakash Ekka | Posted on: Aug 19, 2014 | Views(775) | Download (106)