The post reform period in Indian fiscal system needed to assess the impact of reforms as regards tax buoyancy and elasticity of Indian tax system in pre GST exercise. This paper studies the variation in buoyancy of the following taxes: Corporation Tax, Income Tax, Customs tax, Union Excise Duty. It also attempts to study the elasticities of the above mentioned taxes by eliminating the impact of discretionary changes.
This paper assesses the effects of Tax elasticity on Government Spending state wise from 2001-2010 for five major states in terms of population. OLS Regression model is used where the relationships are assumed to be linear. The variables used in the regression model are: G t = the government spending at the state level, the dependent variable Y t = the Gross Domestic Product (GDP) of the state C t = the central assistance to the state , E t = the elasticity variable, The subscript 't' refers to the corresponding year of analysis and b 0, b 1, b 2, b 3, b 4, b 5 are regression coefficients. In most of the cases, elasticity bore a positive and significant relation to the level of government spending except in the case of Bihar, where the coefficient was negative and insignificant.
Large banks and small banks can impact agency costs differently. The current study considers a panel data of 30 Indian banks before the merger to reveal the relationship between agency cost and board composition using panel regression models. The agency cost is reflected in three measures: Asset turnover ratio, free cash flow and leverage ratio. Board composition is sub-divided into three groups: board structure, board independence and board diversity. The finding of the study for large banks shows that former CEO, number of employee representatives on board, independent chairperson, CEO duality, bank age and size impacts agency cost. On the other hand, for small banks, results prove that bank age, employee representative on board and CEO duality significantly affects agency cost. Therefore, in the current Indian context of banking merger and governmental directives to increase lending to micro, small and medium enterprises, the focus should be shifted more on increasing managerial productivity and increasing leverage. Hence, the emphasis should not be on increasing governmental representatives on the banking board but to enhance bank governance quality and its monitoring. To this end, the current article can potentially provide valuable insights for sustainable and real economic outcomes.
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