Has FRBM rule influenced fiscal deficit-growth nexus differently in India?

Sethi, Dinabandhu; Mohanty, Asit; Mohanty, Avipsa

doi:10.1080/17520843.2019.1677736

Cited by 3 publications

(2 citation statements)

References 31 publications

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“…It is evident from the study that the FRBM Act has had only a neutral impact on Central Government deficits and not played a positive role in bringing down the deficits. The results are consistent with the findings of Parul Jain (2013), Dinabandhu Sethi et al, (2019) and Santosh Kumar Bhashkar (2020).…”

Section: Discussionsupporting

confidence: 92%

An Economic Analysis on The Impact of the FRBM Act on Central Government Deficits in India

2023

IJFMR

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The major purpose of this paper is to analyze the deficits of the Central Government in India since the 1990s, that isduring the pre (1990-1991 to 2002-2003) and the post-FRBMAct period (2003-2004-2022-2023). It looks into the extent to whether the execution of the Fiscal Responsibility and Budget Management (FRBM) Act has played a positive role in bringing downthe overall deficits of the Government or not.The study is based on secondary data and employs Dummy Variable Model for analysis. It is found that the FRBMActwas not successful in minimizing the deficits of the Central Government in India. Thus, it is suggested that it would be advantageous if the Government complies with the targets put down by the FRBM Act as this in turn would help in achieving fiscal discipline, consolidation, growth and stability in the country.

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Section: Discussionsupporting

confidence: 92%

An Economic Analysis on The Impact of the FRBM Act on Central Government Deficits in India

2023

IJFMR

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“…Abbas and Choudhury (2013) found that growth in the agriculture sector is energy-dependent and energy sector demand comes from higher economic growth. According to Sethi et al (2019), India's fiscal deficit has a negative impact on GDP. They came to the conclusion that, for the years 1970 to 2016, the fiscal deficit had a detrimental effect on the nation's economic growth using the ARDL and FMOLS techniques.…”

Section: Studies At the National Levelmentioning

confidence: 99%

Nonlinear Dynamic Impact of Electricity Consumption on Economic Growth in Odisha: A Disaggregated Causality Analysis

Behera,

Mohanty

2024

IJEF

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The paper examines the causal link between electricity consumption and Odisha’s economic growth using linear and nonlinear causality tests in annual data from 1981 to 2020. The study uses both linear and non-linear causality on aggregate and sectoral data. Based on the empirical analysis, the study finds that electricity consumption strongly granger causes state’s economic growth. Further, sectoral-level analysis shows that electricity consumption exhibits a strong causal relationship with the primary, secondary, and tertiary sectors. This finding is consistent for both linear and non-linear granger causality tests. Moreover, the estimation of long-run elasticity reveals that both secondary and tertiary sectors have greater than unity elasticity whereas the primary sector has less than unity elasticity. The rolling elasticity shows that elasticity is increasing over time and across the sectors, barring the tertiary sector. More mechanized activities in the primary sector will increase the consumption of electricity and more value addition to the economic growth of the state. The policy intervention would be to reduce electricity losses (leakages) as well as increase the production of electricity to increase economic growth. Considering the greater role of electricity in the state’s economic progress, intervention from both the state government and the Odisha Electricity Regulatory Commission, the regulatory body of the state, is very much essential.

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Fiscal autonomy and public expenditure performance: Some panel‐data evidence from Indian states

Mohanty,

Sethi,

Mohanty

2024

Bulletin of Econ Res

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This study examines the impact of fiscal autonomy (FAP) on public expenditure performance across 18 Indian states from 2010–11 to 2019–20. We develop a measure of public expenditure performance using social indicators. We also measure FAP using revenue‐expenditure ratio. Based on system generalized method of moments, the empirical result confirms that a higher FAP given to Indian states is associated with greater fiscal performance. Further, the robustness check reveals that central transfer insignificantly affects the expenditure performance of Indian states.

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Has FRBM rule influenced fiscal deficit-growth nexus differently in India?

Cited by 3 publications

References 31 publications

An Economic Analysis on The Impact of the FRBM Act on Central Government Deficits in India

An Economic Analysis on The Impact of the FRBM Act on Central Government Deficits in India

Nonlinear Dynamic Impact of Electricity Consumption on Economic Growth in Odisha: A Disaggregated Causality Analysis

Fiscal autonomy and public expenditure performance: Some panel‐data evidence from Indian states

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