The 11th finance commission attributes 'unsustainable expenditure expansion' on three factors - government wage increases, interest burdens due to market bowworing, and growth in subsidies. It considers the second to be inevitable while the first and third are targeted for attack!
raja swamy's List: center state
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Apr 20, 09
strong neoliberal arguments for implementing debt swap scheme; blames states for unwillingness to use small savings to pay for swap, and blasts eagerness to go for increased market loans and calls for 'drastic' neoliberal measures to reduce state debt burden.
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additional market borrowings and up to 30 per cent of their net small savings proceeds at the prevailing (lower) interest rates
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Apr 20, 09
TN Small Savings website: has details of schemes, and basic stats on targets, collections and central loan contributions over 1991-2006 period
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Apr 20, 09
Point 68: State governments debt: announces the debt swap scheme
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Apr 20, 09
NSSF collections declined 68% between 2006-07 and 2007-08.
reasons: whole bunch of other options available, also some states (TN, Orissa, Delhi) pre-paid their loan debts to the NSSF cutting future interest earnings -
Apr 20, 09
Small savings scheme losing out to commercial banks in Nagai
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Apr 26, 09
Analysis of the 11th Finance commission
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Add Sticky NoteThus, the EFC identifies three reasons for unsustainable expenditure expansion : periodic upward revision of government wage bills because of "Pay Commissions"; increasing interest burden because of greater reliance on market borrowings by government; and growing explicit and implicit subsidies. It is interesting that the EFC questions - and even attacks - only the first and third factors, condemning them as populist and unnecessary, while accepting the inevitability of the second.
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basically resources that look at shift in center-state financial relationship in the 1990s,
Updated on Apr 26, 09
Created on Apr 20, 09
Category: Business & Finance
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