How Quality of Expenditure in State Finances Impacts State Economy

27th May, 2016 – By Reserve Bank of India, Mumbai

1. Shri. B.M.Mishra, Prinicipal Adviser, Fiscal Analysis Division (FAD), Department of Economic and Policy Research (DEPR)
2. Shri, Indranil Bhattacharya, Director, Fiscal Analysis Division (FAD), Department of Economic and Policy Research (DEPR)

The Reserve Bank of India brings out a report as an annual publication entitled State Finances: A Study of Budgets, which analyses the fiscal position of state governments on the basis of primary disaggregated state-wise data. In 2015-16, this research study was structured on a special theme ‘Quality of Sub-national Public Expenditure’.

The speakers spoke at length about the significance of the unique report which is the primary source of information on disaggregated state-wise fiscal data. A detailed analysis of the major deficit indicators of the state and an analysis of the causes driving the same were discussed. Trends in expenditure were looked at and cross-state comparisons were made on the basis of expenditure on social and physical expenditure. And finally, select indicators that comprised the Quality of Expenditure were closely studied.

The seminar was greatly appreciated for its rich content. The platform was a valuable confluence of the academicians, policy-makers and regulators. Such sessions are instrumental in coming up with more valuable research.