Understanding the evolution of fiscal performance of Indian states

Akram, V. and Rath, Badri Narayan (2021) Understanding the evolution of fiscal performance of Indian states. Growth and Change, 52 (4). pp. 2172-2193. ISSN 0017-4815

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Abstract

This study investigates the fiscal performance of 21 Indian states for the period 1980–81 to 2017–18. To do so, this study first applies a widely used multidimensional composite index. Second, this study implements data envelopment analysis (DEA) to assess the fiscal performance. The findings reveal that among Indian states, Odisha achieves the first rank and is found to be the best fiscal performing state in recent years. On the contrary, our results indicate that Punjab is the least performing state during 2015–16 to 2017–18. From the policy perspective, least performing states should get more attention from the central government and can adopt the policies of other best performing states, which may improve their fiscal performance. © 2021 Wiley Periodicals LLC.

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