Do fiscal rules promote fiscal performance and economic growth?
By: Irsad, Malik, Mohd Yousuf and Jafar, Syed Hasan
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Material type: 
BookPublisher: Economic & Political Weekly Description: 61(20), May 16, 2026: p.36-44.
In:
Economic & Political WeeklySummary: The relationship between fiscal rules, fiscal performance, and economic growth in India and its sub-national economies from 1991 to 2022 is examined. Over the period observed, the fiscal performance index increased from 50.5 to 60.5, while state-level fiscal performance remained stable, deteriorating during the COVID-19 recession, and improving thereafter. The findings reveal that economic growth contributes more significantly to fiscal performance at the national level than at the state level. Fiscal rule has a positive impact on fiscal discipline for India; however, at the state level, it has a negative coefficient, suggesting that stricter rules might constrain flexibility, leading to adverse effects on fiscal performance as well as economic growth.- Reproduced
https://www.epw.in/journal/2026/20/insight/do-fiscal-rules-promote-fiscal-performance-and.html
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
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Indian Institute of Public Administration | 61(20), May 16, 2026: p.36-44 | Available | AR139201 |
The relationship between fiscal rules, fiscal performance, and economic growth in India and its sub-national economies from 1991 to 2022 is examined. Over the period observed, the fiscal performance index increased from 50.5 to 60.5, while state-level fiscal performance remained stable, deteriorating during the COVID-19 recession, and improving thereafter. The findings reveal that economic growth contributes more significantly to fiscal performance at the national level than at the state level. Fiscal rule has a positive impact on fiscal discipline for India; however, at the state level, it has a negative coefficient, suggesting that stricter rules might constrain flexibility, leading to adverse effects on fiscal performance as well as economic growth.- Reproduced
https://www.epw.in/journal/2026/20/insight/do-fiscal-rules-promote-fiscal-performance-and.html
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