Fiscal Reforms and Consolidation in India Since 1991

Deepak Vats
2011 Indian Journal Of Applied Research  
In the second half of the 1980s, when the Government of India pursued its expansionary fiscal policies to support growth from the deficits, it contributed to the foreign exchange crisis in 1991. In the aftermath of the macroeconomic crisis of 1991, a comprehensive reform programme was launched in India. Since then, the goal of consolidating public finances has been high on the agenda of the Government of India. The structuring of the tax system constitutes major components of fiscal reforms
more » ... fiscal reforms apart from the measures to curb built-in growth in expenditure and to bring about structural changes in the composition of expenditure. Apart from it, Government has made special efforts to deal with the problem of growing fiscal liabilities in the form of internal and external debt. To address the structural issues and expedite the fiscal consolidation process, a concrete step was taken by the Government of India and it enacted the Fiscal Responsibility and Budget Management Act (FRBMA) in 2003. Against the backdrop of these reform measures and enactment of FRBMA, this paper aims at a closer examination of the fiscal health of the Government of India.
doi:10.15373/2249555x/june2014/175 fatcat:mtt7w6nsdbfhrmyngwpgamczsu