Political Economy of Infrastructure Spending in India

This paper examines a puzzle in the political economy of infrastructure in India -- the co-existence of relatively low shares of capital spending in public budgets alongside evidence of large demand for village infrastructure from poor voters. It a...

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Main Author: Khemani, Stuti
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
TAX
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100916114657
http://hdl.handle.net/10986/3907
id okr-10986-3907
recordtype oai_dc
spelling okr-10986-39072021-04-23T14:02:13Z Political Economy of Infrastructure Spending in India Khemani, Stuti ACCOUNTABILITY ACCOUNTING ANTI-CORRUPTION BENEFICIARY BUDGET CONSTRAINT BUDGET CONSTRAINTS CAPITAL PROJECTS CHECKS CITIZEN ENGAGEMENT CITIZENS COALITION GOVERNMENTS CONSTITUENCIES CONSTITUENCY CONSTITUENTS CORRUPTION DEBT DEBT SERVICING DECENTRALIZATION DECISION-MAKING DECISION-MAKING POWER DEMOCRACIES DEMOCRACY DISCLOSURE DISCLOSURE OF INFORMATION ECONOMIC ELITES ECONOMIC GROWTH ECONOMIC PERFORMANCE ELECTION ELECTORAL COMPETITION ELECTORAL PERFORMANCE ELECTRICITY ENABLING ENVIRONMENT EVASION FINANCES FISCAL POLICIES FISCAL POLICY FISCAL RESOURCES GOVERNMENT BUDGET GOVERNMENT EMPLOYEES GOVERNMENT EXPENDITURES GOVERNMENT PERFORMANCE GOVERNMENT POLICY GOVERNMENT PROGRAMS GOVERNMENT SPENDING GOVERNOR HOLDING HOUSING HUMAN DEVELOPMENT INCOME TAX INFORMATION DISSEMINATION INSTITUTIONAL REFORM INSTITUTIONAL REFORMS INTEREST PAYMENTS INTERNATIONAL BANK INVESTMENT PROJECTS INVESTMENT SPENDING LABOR MARKETS LEGISLATOR LEGISLATORS LEVY LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL INFRASTRUCTURE LOCAL LEVEL LOCAL REVENUE MASS MEDIA MAYORS MUNICIPAL CORPORATIONS MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPAL INFRASTRUCTURE MUNICIPALITIES NATIONAL ELECTIONS PARLIAMENT POLICY MAKERS POLITICAL ECONOMY POLITICAL INSTITUTIONS POLITICAL MOBILIZATION POLITICAL PARTICIPATION POLITICAL PARTIES POLITICAL PARTY POLITICIANS POOR GOVERNANCE POPULISM POVERTY REDUCTION PRIVATE INVESTMENTS PRIVATE INVESTORS PROPERTY TAXES PUBLIC PUBLIC ACTION PUBLIC ADMINISTRATION PUBLIC AGENCY PUBLIC BENEFITS PUBLIC BUDGETS PUBLIC CHOICE PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC GOOD PUBLIC GOODS PUBLIC HEALTH PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC MANAGEMENT PUBLIC OFFICIALS PUBLIC POLICIES PUBLIC POLICY PUBLIC PROGRAMS PUBLIC PROVISION PUBLIC RESOURCES PUBLIC SCHOOLS PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING PUBLIC UTILITIES RESERVE RESERVE BANK RESOURCE ALLOCATION RETURN RETURNS REVOLUTION ROADS SAVINGS SOCIAL CAPITAL SOCIAL COST SOCIAL PROGRAMS SOCIAL SECTORS STATE ADMINISTRATION STATE BUDGETS STATE EMPLOYEES STATE GOVERNMENTS STATE INCOME STATE OWNED ENTERPRISES SUFFRAGE TAX TAX BURDEN TAX RATE TAX REVENUE TAX REVENUES TAX SYSTEM TAXATION URBAN AREAS URBAN INFRASTRUCTURE USER CHARGES UTILITIES VOTER PARTICIPATION VOTER TURNOUT VOTERS VOTING This paper examines a puzzle in the political economy of infrastructure in India -- the co-existence of relatively low shares of capital spending in public budgets alongside evidence of large demand for village infrastructure from poor voters. It argues that this pattern is due to infrastructure projects being used at the margin for political rent-seeking, while spending on employment and welfare transfers are the preferred vehicles to win votes for re-election. New suggestive evidence on the variation of public spending composition across states, and within states over time is offered that is consistent with this argument. This evidence underscores a growing argument in the development literature that the level and composition of public spending per se may not be sufficient metrics to assess the quality of public goods policies -- greater infrastructure spending in some contexts may go to political rents rather than to the actual delivery of broad public goods for growth and poverty reduction. 2012-03-19T18:41:56Z 2012-03-19T18:41:56Z 2010-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100916114657 http://hdl.handle.net/10986/3907 English Policy Research working paper ; no. WPS 5423 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper South Asia South Asia South Asia Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTABILITY
ACCOUNTING
ANTI-CORRUPTION
BENEFICIARY
BUDGET CONSTRAINT
BUDGET CONSTRAINTS
CAPITAL PROJECTS
CHECKS
CITIZEN ENGAGEMENT
CITIZENS
COALITION GOVERNMENTS
CONSTITUENCIES
CONSTITUENCY
CONSTITUENTS
CORRUPTION
DEBT
DEBT SERVICING
DECENTRALIZATION
DECISION-MAKING
DECISION-MAKING POWER
DEMOCRACIES
DEMOCRACY
DISCLOSURE
DISCLOSURE OF INFORMATION
ECONOMIC ELITES
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ELECTION
ELECTORAL COMPETITION
ELECTORAL PERFORMANCE
ELECTRICITY
ENABLING ENVIRONMENT
EVASION
FINANCES
FISCAL POLICIES
FISCAL POLICY
FISCAL RESOURCES
GOVERNMENT BUDGET
GOVERNMENT EMPLOYEES
GOVERNMENT EXPENDITURES
GOVERNMENT PERFORMANCE
GOVERNMENT POLICY
GOVERNMENT PROGRAMS
GOVERNMENT SPENDING
GOVERNOR
HOLDING
HOUSING
HUMAN DEVELOPMENT
INCOME TAX
INFORMATION DISSEMINATION
INSTITUTIONAL REFORM
INSTITUTIONAL REFORMS
INTEREST PAYMENTS
INTERNATIONAL BANK
INVESTMENT PROJECTS
INVESTMENT SPENDING
LABOR MARKETS
LEGISLATOR
LEGISLATORS
LEVY
LOCAL GOVERNMENT
LOCAL GOVERNMENTS
LOCAL INFRASTRUCTURE
LOCAL LEVEL
LOCAL REVENUE
MASS MEDIA
MAYORS
MUNICIPAL CORPORATIONS
MUNICIPAL GOVERNMENT
MUNICIPAL GOVERNMENTS
MUNICIPAL INFRASTRUCTURE
MUNICIPALITIES
NATIONAL ELECTIONS
PARLIAMENT
POLICY MAKERS
POLITICAL ECONOMY
POLITICAL INSTITUTIONS
POLITICAL MOBILIZATION
POLITICAL PARTICIPATION
POLITICAL PARTIES
POLITICAL PARTY
POLITICIANS
POOR GOVERNANCE
POPULISM
POVERTY REDUCTION
PRIVATE INVESTMENTS
PRIVATE INVESTORS
PROPERTY TAXES
PUBLIC
PUBLIC ACTION
PUBLIC ADMINISTRATION
PUBLIC AGENCY
PUBLIC BENEFITS
PUBLIC BUDGETS
PUBLIC CHOICE
PUBLIC ECONOMICS
PUBLIC EXPENDITURE
PUBLIC EXPENDITURES
PUBLIC GOOD
PUBLIC GOODS
PUBLIC HEALTH
PUBLIC INFRASTRUCTURE
PUBLIC INVESTMENT
PUBLIC MANAGEMENT
PUBLIC OFFICIALS
PUBLIC POLICIES
PUBLIC POLICY
PUBLIC PROGRAMS
PUBLIC PROVISION
PUBLIC RESOURCES
PUBLIC SCHOOLS
PUBLIC SECTOR
PUBLIC SERVICES
PUBLIC SPENDING
PUBLIC UTILITIES
RESERVE
RESERVE BANK
RESOURCE ALLOCATION
RETURN
RETURNS
REVOLUTION
ROADS
SAVINGS
SOCIAL CAPITAL
SOCIAL COST
SOCIAL PROGRAMS
SOCIAL SECTORS
STATE ADMINISTRATION
STATE BUDGETS
STATE EMPLOYEES
STATE GOVERNMENTS
STATE INCOME
STATE OWNED ENTERPRISES
SUFFRAGE
TAX
TAX BURDEN
TAX RATE
TAX REVENUE
TAX REVENUES
TAX SYSTEM
TAXATION
URBAN AREAS
URBAN INFRASTRUCTURE
USER CHARGES
UTILITIES
VOTER PARTICIPATION
VOTER TURNOUT
VOTERS
VOTING
spellingShingle ACCOUNTABILITY
ACCOUNTING
ANTI-CORRUPTION
BENEFICIARY
BUDGET CONSTRAINT
BUDGET CONSTRAINTS
CAPITAL PROJECTS
CHECKS
CITIZEN ENGAGEMENT
CITIZENS
COALITION GOVERNMENTS
CONSTITUENCIES
CONSTITUENCY
CONSTITUENTS
CORRUPTION
DEBT
DEBT SERVICING
DECENTRALIZATION
DECISION-MAKING
DECISION-MAKING POWER
DEMOCRACIES
DEMOCRACY
DISCLOSURE
DISCLOSURE OF INFORMATION
ECONOMIC ELITES
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ELECTION
ELECTORAL COMPETITION
ELECTORAL PERFORMANCE
ELECTRICITY
ENABLING ENVIRONMENT
EVASION
FINANCES
FISCAL POLICIES
FISCAL POLICY
FISCAL RESOURCES
GOVERNMENT BUDGET
GOVERNMENT EMPLOYEES
GOVERNMENT EXPENDITURES
GOVERNMENT PERFORMANCE
GOVERNMENT POLICY
GOVERNMENT PROGRAMS
GOVERNMENT SPENDING
GOVERNOR
HOLDING
HOUSING
HUMAN DEVELOPMENT
INCOME TAX
INFORMATION DISSEMINATION
INSTITUTIONAL REFORM
INSTITUTIONAL REFORMS
INTEREST PAYMENTS
INTERNATIONAL BANK
INVESTMENT PROJECTS
INVESTMENT SPENDING
LABOR MARKETS
LEGISLATOR
LEGISLATORS
LEVY
LOCAL GOVERNMENT
LOCAL GOVERNMENTS
LOCAL INFRASTRUCTURE
LOCAL LEVEL
LOCAL REVENUE
MASS MEDIA
MAYORS
MUNICIPAL CORPORATIONS
MUNICIPAL GOVERNMENT
MUNICIPAL GOVERNMENTS
MUNICIPAL INFRASTRUCTURE
MUNICIPALITIES
NATIONAL ELECTIONS
PARLIAMENT
POLICY MAKERS
POLITICAL ECONOMY
POLITICAL INSTITUTIONS
POLITICAL MOBILIZATION
POLITICAL PARTICIPATION
POLITICAL PARTIES
POLITICAL PARTY
POLITICIANS
POOR GOVERNANCE
POPULISM
POVERTY REDUCTION
PRIVATE INVESTMENTS
PRIVATE INVESTORS
PROPERTY TAXES
PUBLIC
PUBLIC ACTION
PUBLIC ADMINISTRATION
PUBLIC AGENCY
PUBLIC BENEFITS
PUBLIC BUDGETS
PUBLIC CHOICE
PUBLIC ECONOMICS
PUBLIC EXPENDITURE
PUBLIC EXPENDITURES
PUBLIC GOOD
PUBLIC GOODS
PUBLIC HEALTH
PUBLIC INFRASTRUCTURE
PUBLIC INVESTMENT
PUBLIC MANAGEMENT
PUBLIC OFFICIALS
PUBLIC POLICIES
PUBLIC POLICY
PUBLIC PROGRAMS
PUBLIC PROVISION
PUBLIC RESOURCES
PUBLIC SCHOOLS
PUBLIC SECTOR
PUBLIC SERVICES
PUBLIC SPENDING
PUBLIC UTILITIES
RESERVE
RESERVE BANK
RESOURCE ALLOCATION
RETURN
RETURNS
REVOLUTION
ROADS
SAVINGS
SOCIAL CAPITAL
SOCIAL COST
SOCIAL PROGRAMS
SOCIAL SECTORS
STATE ADMINISTRATION
STATE BUDGETS
STATE EMPLOYEES
STATE GOVERNMENTS
STATE INCOME
STATE OWNED ENTERPRISES
SUFFRAGE
TAX
TAX BURDEN
TAX RATE
TAX REVENUE
TAX REVENUES
TAX SYSTEM
TAXATION
URBAN AREAS
URBAN INFRASTRUCTURE
USER CHARGES
UTILITIES
VOTER PARTICIPATION
VOTER TURNOUT
VOTERS
VOTING
Khemani, Stuti
Political Economy of Infrastructure Spending in India
geographic_facet South Asia
South Asia
South Asia
Asia
India
relation Policy Research working paper ; no. WPS 5423
description This paper examines a puzzle in the political economy of infrastructure in India -- the co-existence of relatively low shares of capital spending in public budgets alongside evidence of large demand for village infrastructure from poor voters. It argues that this pattern is due to infrastructure projects being used at the margin for political rent-seeking, while spending on employment and welfare transfers are the preferred vehicles to win votes for re-election. New suggestive evidence on the variation of public spending composition across states, and within states over time is offered that is consistent with this argument. This evidence underscores a growing argument in the development literature that the level and composition of public spending per se may not be sufficient metrics to assess the quality of public goods policies -- greater infrastructure spending in some contexts may go to political rents rather than to the actual delivery of broad public goods for growth and poverty reduction.
format Publications & Research :: Policy Research Working Paper
author Khemani, Stuti
author_facet Khemani, Stuti
author_sort Khemani, Stuti
title Political Economy of Infrastructure Spending in India
title_short Political Economy of Infrastructure Spending in India
title_full Political Economy of Infrastructure Spending in India
title_fullStr Political Economy of Infrastructure Spending in India
title_full_unstemmed Political Economy of Infrastructure Spending in India
title_sort political economy of infrastructure spending in india
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100916114657
http://hdl.handle.net/10986/3907
_version_ 1764388957631545344