Fiscal Policy Reforms in India Since 1991

Contents: Preface. 1. Fiscal policy: an introduction. 2. Studies on fiscal policy: a review. 3. Role of fiscal policy in economic development. 4. Philosophy of fiscal reforms in India. 5. Fiscal reform measures in India. 6. Tax reforms in India. 7. Public expenditure reforms in India. 8. Evaluation of fiscal reforms in India. 9. Conclusions and suggestions. Bibliography. Index.

The external payments crisis of 1991 which led to the initiation of economic reforms in India was the result of deteriorating fiscal situation during the latter half of 1980s. Fiscal imbalance was identified as the underlying cause of the twin problems of inflation and the difficult balance of payments position. Hence, fiscal consolidation constituted a major objective of the policy response. This consolidation was planned to be achieved through reduction in the size of budget deficit and public debt in relation to Gross Domestic Product (GDP). (jacket)