Practising subnational public finance in an emerging economy - Fiscal Marksmanship in Kerala
- Ruzel Shrestha & Lekha Chakraborty
- Apr 2019
- National Institute of Public Finance and Policy (NIPFP)
- India
Kerala, though well known for its achievements in human development outcomes, is facing fiscal stress within the rule-based fiscal framework and innovating policy tools to achieve a revenue-led fiscal consolidation. After examining the Budget Estimates, Revised Estimates and Actuals for macro-fiscal variables from Kerala State Budgets for the period from 2011-12 to 2016-17, we found that the magnitude of forecasting errors was significant in case of tax revenue. The macro fiscal implications point towards three important steps that states must take to balance growth and the stability of finances.
