Subnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu?
In the late 1990s the Indian state of Tamil Nadu experienced an unprecedented fiscal deterioration, which was part of the widespread fiscal deterioration in Indian states. This deterioration was troubling because current expenditure outgrew total revenue, leaving little fiscal space for infrastructu...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/06/6871766/subnational-fiscal-sustainability-analysis-can-learn-tamil-nadu http://hdl.handle.net/10986/8425 |
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okr-10986-8425 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
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ACCOUNTING AGRICULTURE BANK LENDING BORROWING BUDGET CONSTRAINT BUDGETARY SUPPORT CAPITAL EXPENDITURE CAPITAL MARKETS CAPITAL OUTLAYS CAPITAL SPENDING CENTRAL GOVERNMENTS CENTRAL TAXES CENTRAL TRANSFERS COMMERCIAL BANKS CONSOLIDATION CONSUMERS COUPONS CREDIT RISK CREDITWORTHINESS DEBT DEBT BURDEN DEBT SERVICE DEBT SUSTAINABILITY DECENTRALIZATION DEFICITS DEVOLUTION DOMESTIC BORROWING ECONOMIC GROWTH ECONOMIC PERFORMANCE ELECTRICITY EMPLOYMENT EVASION EXPENDITURE COMPOSITION FACTORING FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL PERFORMANCE FINANCIAL SECTOR FINANCIAL TRANSACTIONS FISCAL ACCOUNTS FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL BALANCE FISCAL BALANCES FISCAL BEHAVIOR FISCAL CRISES FISCAL CRISIS FISCAL DECENTRALIZATION FISCAL DEFICIT FISCAL DEFICITS FISCAL DISCIPLINE FISCAL FRAMEWORK FISCAL PERFORMANCE FISCAL POLICIES FISCAL POLICY FISCAL REFORM FISCAL REFORMS FISCAL RISKS FISCAL STRESS FISCAL SUSTAINABILITY FISCAL TRANSFERS FISCAL TRANSPARENCY FOREIGN EXCHANGE GDP GOVERNMENT BONDS GOVERNMENT BUDGET GOVERNMENT DEBT GOVERNMENT FINANCE GOVERNMENT GUARANTEES GOVERNMENT REVENUE GOVERNMENT SECURITIES GOVERNMENT SUBSIDIES GROWTH POTENTIAL GROWTH RATE GROWTH RATES HOUSING INFLATION INFLATION RATE INFLATION RATES INTEREST EXPENDITURE INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERGOVERNMENTAL REVENUE LAWS LEGAL FRAMEWORK LEGISLATION LOCAL GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC CONDITIONS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET DISCIPLINE MIDDLE INCOME COUNTRIES MONETARY POLICY MONOPOLY MOTOR VEHICLE TAXES NATIONAL POLICIES NET LOSS NET LOSSES NOMINAL INTEREST RATE NOMINAL INTEREST RATES PENSION LIABILITIES PENSIONS PRESENT VALUE PRIMARY BALANCE PRIVATIZATION PUBLIC PUBLIC DEBT PUBLIC ENTERPRISES PUBLIC SECTOR REAL INTEREST RATE RECURRENT EXPENDITURES RESERVE BANK OF INDIA RETIREMENT REVENUE REVENUE GROWTH REVENUE PERFORMANCE REVENUE SHARING REVENUE SOURCES RISK FACTORS SAVINGS SUBNATIONAL FINANCE SUBNATIONAL GOVERNMENTS TAX TAX REFORM TAX REVENUE TAX REVENUES TAXATION TOTAL REVENUE TRANSFERS TRANSPORT UTILITIES WAGES |
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ACCOUNTING AGRICULTURE BANK LENDING BORROWING BUDGET CONSTRAINT BUDGETARY SUPPORT CAPITAL EXPENDITURE CAPITAL MARKETS CAPITAL OUTLAYS CAPITAL SPENDING CENTRAL GOVERNMENTS CENTRAL TAXES CENTRAL TRANSFERS COMMERCIAL BANKS CONSOLIDATION CONSUMERS COUPONS CREDIT RISK CREDITWORTHINESS DEBT DEBT BURDEN DEBT SERVICE DEBT SUSTAINABILITY DECENTRALIZATION DEFICITS DEVOLUTION DOMESTIC BORROWING ECONOMIC GROWTH ECONOMIC PERFORMANCE ELECTRICITY EMPLOYMENT EVASION EXPENDITURE COMPOSITION FACTORING FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL PERFORMANCE FINANCIAL SECTOR FINANCIAL TRANSACTIONS FISCAL ACCOUNTS FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL BALANCE FISCAL BALANCES FISCAL BEHAVIOR FISCAL CRISES FISCAL CRISIS FISCAL DECENTRALIZATION FISCAL DEFICIT FISCAL DEFICITS FISCAL DISCIPLINE FISCAL FRAMEWORK FISCAL PERFORMANCE FISCAL POLICIES FISCAL POLICY FISCAL REFORM FISCAL REFORMS FISCAL RISKS FISCAL STRESS FISCAL SUSTAINABILITY FISCAL TRANSFERS FISCAL TRANSPARENCY FOREIGN EXCHANGE GDP GOVERNMENT BONDS GOVERNMENT BUDGET GOVERNMENT DEBT GOVERNMENT FINANCE GOVERNMENT GUARANTEES GOVERNMENT REVENUE GOVERNMENT SECURITIES GOVERNMENT SUBSIDIES GROWTH POTENTIAL GROWTH RATE GROWTH RATES HOUSING INFLATION INFLATION RATE INFLATION RATES INTEREST EXPENDITURE INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERGOVERNMENTAL REVENUE LAWS LEGAL FRAMEWORK LEGISLATION LOCAL GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC CONDITIONS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET DISCIPLINE MIDDLE INCOME COUNTRIES MONETARY POLICY MONOPOLY MOTOR VEHICLE TAXES NATIONAL POLICIES NET LOSS NET LOSSES NOMINAL INTEREST RATE NOMINAL INTEREST RATES PENSION LIABILITIES PENSIONS PRESENT VALUE PRIMARY BALANCE PRIVATIZATION PUBLIC PUBLIC DEBT PUBLIC ENTERPRISES PUBLIC SECTOR REAL INTEREST RATE RECURRENT EXPENDITURES RESERVE BANK OF INDIA RETIREMENT REVENUE REVENUE GROWTH REVENUE PERFORMANCE REVENUE SHARING REVENUE SOURCES RISK FACTORS SAVINGS SUBNATIONAL FINANCE SUBNATIONAL GOVERNMENTS TAX TAX REFORM TAX REVENUE TAX REVENUES TAXATION TOTAL REVENUE TRANSFERS TRANSPORT UTILITIES WAGES Ianchovichina, Elena Liu, Lili Nagarajan, Mohan Subnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu? |
| relation |
Policy Research Working Paper; No. 3947 |
| description |
In the late 1990s the Indian state of Tamil Nadu experienced an unprecedented fiscal deterioration, which was part of the widespread fiscal deterioration in Indian states. This deterioration was troubling because current expenditure outgrew total revenue, leaving little fiscal space for infrastructure spending. The paper presents a framework for subnational fiscal sustainability analysis and applies it to Tamil Nadu where subsequent fiscal adjustment has been ambitious and politically challenging, but has promised to put state finance on a sustainable path and create fiscal space for infrastructure investment. The paper emphasizes the differences between fiscal sustainability analysis at the national and subnational levels, attempts to take into account uncertainty, and discusses the key components of the state's fiscal accounts and how they respond to reforms and shocks. Risks to Tamil Nadu's fiscal outlook include interest rate shocks, pressures on the primary balance, and contingent liabilities. Though the state's efforts to remove constraints to economic growth, minimize recurrent expenditures and maximize its revenue potential will be critical for fiscal sustainability, national policies feature prominently in subnational fiscal adjustment. Tamil Nadu's quest for fiscal sustainability is relevant for other countries. Decentralization has given subnational governments in developing countries significant spending and taxation responsibilities, and the capacity to incur debt. The fiscal stress of the Indian states echoed the fiscal crises of subnational governments in several other major emerging economies. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Ianchovichina, Elena Liu, Lili Nagarajan, Mohan |
| author_facet |
Ianchovichina, Elena Liu, Lili Nagarajan, Mohan |
| author_sort |
Ianchovichina, Elena |
| title |
Subnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu? |
| title_short |
Subnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu? |
| title_full |
Subnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu? |
| title_fullStr |
Subnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu? |
| title_full_unstemmed |
Subnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu? |
| title_sort |
subnational fiscal sustainability analysis : what can we learn from tamil nadu? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/06/6871766/subnational-fiscal-sustainability-analysis-can-learn-tamil-nadu http://hdl.handle.net/10986/8425 |
| _version_ |
1764406242194751488 |
| spelling |
okr-10986-84252021-04-23T14:02:41Z Subnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu? Ianchovichina, Elena Liu, Lili Nagarajan, Mohan ACCOUNTING AGRICULTURE BANK LENDING BORROWING BUDGET CONSTRAINT BUDGETARY SUPPORT CAPITAL EXPENDITURE CAPITAL MARKETS CAPITAL OUTLAYS CAPITAL SPENDING CENTRAL GOVERNMENTS CENTRAL TAXES CENTRAL TRANSFERS COMMERCIAL BANKS CONSOLIDATION CONSUMERS COUPONS CREDIT RISK CREDITWORTHINESS DEBT DEBT BURDEN DEBT SERVICE DEBT SUSTAINABILITY DECENTRALIZATION DEFICITS DEVOLUTION DOMESTIC BORROWING ECONOMIC GROWTH ECONOMIC PERFORMANCE ELECTRICITY EMPLOYMENT EVASION EXPENDITURE COMPOSITION FACTORING FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL PERFORMANCE FINANCIAL SECTOR FINANCIAL TRANSACTIONS FISCAL ACCOUNTS FISCAL ADJUSTMENT FISCAL ADJUSTMENTS FISCAL BALANCE FISCAL BALANCES FISCAL BEHAVIOR FISCAL CRISES FISCAL CRISIS FISCAL DECENTRALIZATION FISCAL DEFICIT FISCAL DEFICITS FISCAL DISCIPLINE FISCAL FRAMEWORK FISCAL PERFORMANCE FISCAL POLICIES FISCAL POLICY FISCAL REFORM FISCAL REFORMS FISCAL RISKS FISCAL STRESS FISCAL SUSTAINABILITY FISCAL TRANSFERS FISCAL TRANSPARENCY FOREIGN EXCHANGE GDP GOVERNMENT BONDS GOVERNMENT BUDGET GOVERNMENT DEBT GOVERNMENT FINANCE GOVERNMENT GUARANTEES GOVERNMENT REVENUE GOVERNMENT SECURITIES GOVERNMENT SUBSIDIES GROWTH POTENTIAL GROWTH RATE GROWTH RATES HOUSING INFLATION INFLATION RATE INFLATION RATES INTEREST EXPENDITURE INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERGOVERNMENTAL REVENUE LAWS LEGAL FRAMEWORK LEGISLATION LOCAL GOVERNMENT LOCAL GOVERNMENTS MACROECONOMIC CONDITIONS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET DISCIPLINE MIDDLE INCOME COUNTRIES MONETARY POLICY MONOPOLY MOTOR VEHICLE TAXES NATIONAL POLICIES NET LOSS NET LOSSES NOMINAL INTEREST RATE NOMINAL INTEREST RATES PENSION LIABILITIES PENSIONS PRESENT VALUE PRIMARY BALANCE PRIVATIZATION PUBLIC PUBLIC DEBT PUBLIC ENTERPRISES PUBLIC SECTOR REAL INTEREST RATE RECURRENT EXPENDITURES RESERVE BANK OF INDIA RETIREMENT REVENUE REVENUE GROWTH REVENUE PERFORMANCE REVENUE SHARING REVENUE SOURCES RISK FACTORS SAVINGS SUBNATIONAL FINANCE SUBNATIONAL GOVERNMENTS TAX TAX REFORM TAX REVENUE TAX REVENUES TAXATION TOTAL REVENUE TRANSFERS TRANSPORT UTILITIES WAGES In the late 1990s the Indian state of Tamil Nadu experienced an unprecedented fiscal deterioration, which was part of the widespread fiscal deterioration in Indian states. This deterioration was troubling because current expenditure outgrew total revenue, leaving little fiscal space for infrastructure spending. The paper presents a framework for subnational fiscal sustainability analysis and applies it to Tamil Nadu where subsequent fiscal adjustment has been ambitious and politically challenging, but has promised to put state finance on a sustainable path and create fiscal space for infrastructure investment. The paper emphasizes the differences between fiscal sustainability analysis at the national and subnational levels, attempts to take into account uncertainty, and discusses the key components of the state's fiscal accounts and how they respond to reforms and shocks. Risks to Tamil Nadu's fiscal outlook include interest rate shocks, pressures on the primary balance, and contingent liabilities. Though the state's efforts to remove constraints to economic growth, minimize recurrent expenditures and maximize its revenue potential will be critical for fiscal sustainability, national policies feature prominently in subnational fiscal adjustment. Tamil Nadu's quest for fiscal sustainability is relevant for other countries. Decentralization has given subnational governments in developing countries significant spending and taxation responsibilities, and the capacity to incur debt. The fiscal stress of the Indian states echoed the fiscal crises of subnational governments in several other major emerging economies. 2012-06-19T15:47:40Z 2012-06-19T15:47:40Z 2006-06 http://documents.worldbank.org/curated/en/2006/06/6871766/subnational-fiscal-sustainability-analysis-can-learn-tamil-nadu http://hdl.handle.net/10986/8425 English Policy Research Working Paper; No. 3947 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |