Understanding the evolution of fiscal performance of Indian states

Vaseem Akram and Badri Rath

Growth and Change, 2021, vol. 52, issue 4, 2172-2193

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.

Date: 2021
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