Publication:
Subnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu?

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dc.contributor.authorLiu, Lili
dc.contributor.authorIanchovichina, Elena
dc.contributor.authorNagarajan, Mohan
dc.date.accessioned2012-06-19T15:47:40Z
dc.date.available2012-06-19T15:47:40Z
dc.date.issued2006-06
dc.description.abstractIn the late 1990s the Indian state of Tamil Nadu experienced an unprecedented fiscal deterioration, which was part of the widespread fiscal deterioration in Indian states. This deterioration was troubling because current expenditure outgrew total revenue, leaving little fiscal space for infrastructure spending. The paper presents a framework for subnational fiscal sustainability analysis and applies it to Tamil Nadu where subsequent fiscal adjustment has been ambitious and politically challenging, but has promised to put state finance on a sustainable path and create fiscal space for infrastructure investment. The paper emphasizes the differences between fiscal sustainability analysis at the national and subnational levels, attempts to take into account uncertainty, and discusses the key components of the state's fiscal accounts and how they respond to reforms and shocks. Risks to Tamil Nadu's fiscal outlook include interest rate shocks, pressures on the primary balance, and contingent liabilities. Though the state's efforts to remove constraints to economic growth, minimize recurrent expenditures and maximize its revenue potential will be critical for fiscal sustainability, national policies feature prominently in subnational fiscal adjustment. Tamil Nadu's quest for fiscal sustainability is relevant for other countries. Decentralization has given subnational governments in developing countries significant spending and taxation responsibilities, and the capacity to incur debt. The fiscal stress of the Indian states echoed the fiscal crises of subnational governments in several other major emerging economies.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/06/6871766/subnational-fiscal-sustainability-analysis-can-learn-tamil-nadu
dc.identifier.doi10.1596/1813-9450-3947
dc.identifier.urihttps://hdl.handle.net/10986/8425
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3947
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAGRICULTURE
dc.subjectBANK LENDING
dc.subjectBORROWING
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGETARY SUPPORT
dc.subjectCAPITAL EXPENDITURE
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL OUTLAYS
dc.subjectCAPITAL SPENDING
dc.subjectCENTRAL GOVERNMENTS
dc.subjectCENTRAL TAXES
dc.subjectCENTRAL TRANSFERS
dc.subjectCOMMERCIAL BANKS
dc.subjectCONSOLIDATION
dc.subjectCONSUMERS
dc.subjectCOUPONS
dc.subjectCREDIT RISK
dc.subjectCREDITWORTHINESS
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEBT SERVICE
dc.subjectDEBT SUSTAINABILITY
dc.subjectDECENTRALIZATION
dc.subjectDEFICITS
dc.subjectDEVOLUTION
dc.subjectDOMESTIC BORROWING
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PERFORMANCE
dc.subjectELECTRICITY
dc.subjectEMPLOYMENT
dc.subjectEVASION
dc.subjectEXPENDITURE COMPOSITION
dc.subjectFACTORING
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL PERFORMANCE
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL TRANSACTIONS
dc.subjectFISCAL ACCOUNTS
dc.subjectFISCAL ADJUSTMENT
dc.subjectFISCAL ADJUSTMENTS
dc.subjectFISCAL BALANCE
dc.subjectFISCAL BALANCES
dc.subjectFISCAL BEHAVIOR
dc.subjectFISCAL CRISES
dc.subjectFISCAL CRISIS
dc.subjectFISCAL DECENTRALIZATION
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL FRAMEWORK
dc.subjectFISCAL PERFORMANCE
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFISCAL REFORM
dc.subjectFISCAL REFORMS
dc.subjectFISCAL RISKS
dc.subjectFISCAL STRESS
dc.subjectFISCAL SUSTAINABILITY
dc.subjectFISCAL TRANSFERS
dc.subjectFISCAL TRANSPARENCY
dc.subjectFOREIGN EXCHANGE
dc.subjectGDP
dc.subjectGOVERNMENT BONDS
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT DEBT
dc.subjectGOVERNMENT FINANCE
dc.subjectGOVERNMENT GUARANTEES
dc.subjectGOVERNMENT REVENUE
dc.subjectGOVERNMENT SECURITIES
dc.subjectGOVERNMENT SUBSIDIES
dc.subjectGROWTH POTENTIAL
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHOUSING
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectINFLATION RATES
dc.subjectINTEREST EXPENDITURE
dc.subjectINTEREST PAYMENTS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERGOVERNMENTAL REVENUE
dc.subjectLAWS
dc.subjectLEGAL FRAMEWORK
dc.subjectLEGISLATION
dc.subjectLOCAL GOVERNMENT
dc.subjectLOCAL GOVERNMENTS
dc.subjectMACROECONOMIC CONDITIONS
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC STABILITY
dc.subjectMARKET DISCIPLINE
dc.subjectMIDDLE INCOME COUNTRIES
dc.subjectMONETARY POLICY
dc.subjectMONOPOLY
dc.subjectMOTOR VEHICLE TAXES
dc.subjectNATIONAL POLICIES
dc.subjectNET LOSS
dc.subjectNET LOSSES
dc.subjectNOMINAL INTEREST RATE
dc.subjectNOMINAL INTEREST RATES
dc.subjectPENSION LIABILITIES
dc.subjectPENSIONS
dc.subjectPRESENT VALUE
dc.subjectPRIMARY BALANCE
dc.subjectPRIVATIZATION
dc.subjectPUBLIC
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC ENTERPRISES
dc.subjectPUBLIC SECTOR
dc.subjectREAL INTEREST RATE
dc.subjectRECURRENT EXPENDITURES
dc.subjectRESERVE BANK OF INDIA
dc.subjectRETIREMENT
dc.subjectREVENUE
dc.subjectREVENUE GROWTH
dc.subjectREVENUE PERFORMANCE
dc.subjectREVENUE SHARING
dc.subjectREVENUE SOURCES
dc.subjectRISK FACTORS
dc.subjectSAVINGS
dc.subjectSUBNATIONAL FINANCE
dc.subjectSUBNATIONAL GOVERNMENTS
dc.subjectTAX
dc.subjectTAX REFORM
dc.subjectTAX REVENUE
dc.subjectTAX REVENUES
dc.subjectTAXATION
dc.subjectTOTAL REVENUE
dc.subjectTRANSFERS
dc.subjectTRANSPORT
dc.subjectUTILITIES
dc.subjectWAGES
dc.titleSubnational Fiscal Sustainability Analysis : What Can We Learn from Tamil Nadu?en
dspace.entity.typePublication
okr.crossref.titleSubnational Fiscal Sustainability Analysis : What Can We Learn From Tamil Nadu ?
okr.date.doiregistration2025-04-10T10:30:30.719292Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/06/6871766/subnational-fiscal-sustainability-analysis-can-learn-tamil-nadu
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid648571468313860557
okr.identifier.doi10.1596/1813-9450-3947
okr.identifier.externaldocumentum000016406_20060621142125
okr.identifier.internaldocumentum6871766
okr.identifier.reportWPS3947
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/06/21/000016406_20060621142125/Rendered/PDF/wps3947.pdfen
okr.topicPublic Sector Economics
okr.topicBanks and Banking Reform
okr.topicMacroeconomics and Economic Growth::Fiscal Adjustment
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.topicFinance and Financial Sector Development
okr.topicPublic Sector Development
okr.unitEcon. Policy & Debt Dept (PRMED)
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication814995f9-044c-566a-9355-890a6ac260ae
relation.isAuthorOfPublication.latestForDiscovery814995f9-044c-566a-9355-890a6ac260ae
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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