01193pab a2200157 454500008004000000100001600040245004800056260000900104300001500113362001000128520080300138650002400941650001600965700002000981773003401001180718b1999   xxu||||| |||| 00| 0 eng d  aJha, Shikha  aForeign aid to India: what does it finance?  c1999  ap.1142-146  a8 May  aThis article shows that foreign aid to India merely substitutes for spending that the government would have undertaken anyway; the funds freed by earmarked aid are spent elsewhere. Moreover, in passing external assistance earmarked for the states, the central government makes a reduction in transfers it would have otherwise made to the states. From the country's perspective these fungibility results could be good; domestic spending priorities - inter-sectoral and inter-regional - are unaffected by foreign aid. For the donors, however, the results indicate that success of their projects, as measured by the conventional benefit-cost analysis, does not tell the whole story; the marginal use of their money and its overall development impact could be different from that intended. - Reproduced  aForeign aid - India  aForeign aid  aSwaroop, Vinaya  aEconomic and Political Weekly