Current Developments in the Indian Economy with special reference to selected issues in Public Finance

1. Current Developments in the Indian Economy with special reference to selected issues in Public Finance Prof. CHARAN WADHVA E-mail: cdwadhva@gmail.com ICAI, New Delhi: May 14, 2013

2. Indian Economy: Selected issues in Public Finance • Organization of this presentation: • Module 1: Current developments in the Indian economy and Public Finance (Fiscal Health): Pivotal Role of Fiscal Policy (in conjunction with other instruments of Economic Policy) in achieving Major Objectives of National Economic Policy: Fiscal Marksmanship Quality • Module 2: Selected Focus on Public Finance issues and Accountability of the Govt. of India

3. Indian Economy: Selected issues in Public Finance • MODULE 1 : Current Developments in the Indian Economy and its fiscal health with special reference to the role of Fiscal Policy ( in conjunction with other instruments of Government’s Economic Policies/Public Policy) • Three major areas of Economic Policy: • Fiscal Policy; • Monetary Policy; and • Exchange Rate Policy

4. Indian Economy: Selected Issues in Public Finance • Comparative Advantage of Effectiveness of the three areas of National Economic Policy: • Fiscal Policy relating to the health of the public finances scores over Monetary Policy and Exchange Rate Policy in more effectively achieving the following policy objectives : (i) Accelerating Growth rate; Removing supply side constraints/bottlenecks; Counter-cyclical macro-economic stabilization; (ii) Employment generation; (iii) Social justice/reduction of inequalities in income; consumption; wealth; and regional disparities; and (iv)promoting “Inclusive growth” benefiting the poorer and deprived people and their “social empowerment” through Human Resource Development (improving quality of life reflected in the Human Development Index).

5. Indian Economy: Selected Issues in Public Finance • Monetary Policy is more effective in controlling inflation through interest rate policy, especially under demand pull inflation caused by excess liquidity (money supply). • Exchange rate Policy is more effective in achieving the Balance of Payments objectives relating to the external sector transactions of the economy like exports; imports; remittances; foreign investments (capital flows inwards and outwards)

6. Indian Economy: Selected Issues in Public Finance • Three major components of Fiscal Policy: • 1. Taxation and Subsidies Policies; • 2. Public Expenditure Policies; and • 3. Public Debt: Internal ; External Debt (serious) • Through each of these three areas, Fiscal policies have impact on crucial economic indicators of the current and future economic health and international sovereign credit ratings of the concerned country’s economy.

7. Indian Economy: Selected Issues in Public Finance • Illustrative use of instruments of Fiscal Policy for achieving selected economic objectives by influencing both macro-economic and business environment for decision makers in: (i) Household sector; (ii) Business sector and Not for Profit organizations; (iii) All levels of Government ; and (iv) Foreign entities doing business with the concerned country.

8. Indian Economy: Selected issues in Public Finance • Examples of Use of Fiscal Policy for achieving selected objectives: • For promoting economic growth: • (i) Tax incentives for increasing “Savings”; • (ii) Tax saving policies for promoting investment by business entities/entrepreneurs • (iii) Public Investment (Public expenditure) in infrastructure for removing supply side constraints to growth and inflation; Public enterprises; social services like health; education. • (iv) Avoiding excessive government borrowing which can “crowd out” private investment from the market

9. Indian Economy: Selected issues in Public Finance • Examples of use of Fiscal Policy for achieving macro-economic counter-cyclical stabilization: • Provision of Fiscal stimulus Packages through Public Expenditure and Tax holidays/reduction of tax liability for higher investment by businesses (generating fiscal deficits) in recessionary phase. • Raising taxes in times of boom to generate fiscal surplus for creating reserves for financing stimulus packages in times of recession

10. Indian economy: Selected issues in Public Finance • Examples of use of Fiscal Policy for promoting “Inclusive Growth”: • (i) Public Investment in Employment generation schemes (like MNREGA) through provisioning of training/skill development and capital/assets at affordable lower cost with fair opportunities for repayment of loans for productive purposes. • (ii) Public Investment in providing insurance policies to the poorer sections at affordable cost.

11. Indian Economy: Selected issues in Public Finance • Fiscal “Marksmanship”: This term is used by the Government in the Economic Survey(s) to denote the quality of the management of the budgetary process in the limited sense of ensuring minimum divergence between Budgeted estimates and the Actual outcomes (Revised estimates) of the resource allocations • Government of India’s welcome initiative to shift focus from financial “Outlays” to physically measurable “Outcomes” announced in the 2005-06 Budget speech by then Finance Minister Mr. P. Chidambaram. • Fiscal Marksmanship needs to incorporate “Outcomes” approach outlined in the Budget speech of 28-02-2005

12. Indian Economy: Selected Issues in Public Finance • Classical “Cannons” of Public Finance Policy: • Selected Principles of ideal “Taxation Policy”: • (i) Progressive Taxation according to “Capacity/Ability” to pay; (ii) ChanakyaNeeti: The King (Government) ought to tax its subjects in the manner in which the bee collects “honey” from flowers without adversely affecting their quality/inner strength

13. Indian Economy: Selected issues in Public Finance • Principles of ideal Public Expenditure for developing countries like India: • Efficiency in Public Expenditure to fully reach beneficiaries without any undesirable “leakages”; favors/ corruption etc. with time bound delivery. • Tailoring Public Expenditure (including social sector schemes) to Public Revenues/Resources in a prudent manner so as to avoid “Revenue Deficits” and to avoid at all costs unsustainable “Fiscal Deficits” as a proportion of Gross Domestic Product with several adverse effects on the current and the future health of the economy (explained below):

14. Indian Economy: Selected Issues in Public Finance • The notable major adverse effects of “Unsustainably high Fiscal Deficit as a proportion of GDP”: • 1. Lowering prospects for sustainable high growth • 2. Adding to inflationary pressures which beyond a socially acceptable level act as the most regressive tax on the fixed income and poor and vulnerable sections of the society. • 3. Spilling over to unsustainable Current Account Deficit/BOP problems forcing depreciation of the currency and taking last recourse to IMF borrowings with austerity conditionalities lowering growth/worsening unemployment • 4. Reducing inflows of foreign investment and remittances • 5. Lowering international credit rating for the country making external borrowings costlier.

15. Indian Economy: Selected issues in Public Finance • Touchstone of Prudent Fiscal Marksmanship: • Transparency and Accountability in Fiscal Policy and public delivery systems to achieve “maximum good of the maximum people” ( for “Inclusive Growth” and Human Development) and ensuring: • (i) Higher growth with low inflation; • (ii) Sustainable Balance of Payments; • (iii) Sustainable developmt.(Ecological balance) • (iv) Inter-generational and gender equity. • The art of striking socially acceptable BALANCE for delivering good governance in a true democracy.

16. Indian Economy: Selected issues in Public Finance • INDIA GROWTH STORY: Rise and Fall: • India attracted world wide attention as a fast rising emerging economy, next only to China among the BRICS (Brazil, Russia, India, China and South Africa) and as an attractive destination for Foreign Direct Investment (FDI) for achieving avg. 9.0 % per annum growth rate during the years 2003-08 but growth rate has substantially decelerated since 2011-12 (lowest growth estmtd. by C.S.O. for 2012-13 at 5.0 % during last decade. • Uncomfortably high inflation in last 3 years: Highest CPI inflation among BRICS countries Dec. 2012 over Dec 2011: China: 5.84%; India: 11.17%; Russia: 6.54%; S. Africa: 5.47%. • Uncontrolled high inflation creating macro-economic and social distortions: Main causes: (i) Unsustainable high Fiscal deficit due to excessive public expenditure on social welfare schemes; (ii) Food; fuel; and wage push inflation and (ii) Supply side bottlenecks/constraints.

17. Indian Economy: Selected Issues in Public Finance • India Recent Growth Story: Adding dynamism and attracting global attention: but losing shine in recent years: • Years GDP growth rate real (%) S/Y(%) I/Y %) Forgn Inv/Y % • 2005-06 9.5 • 2006-07 9.6 34.6 35.7 1.1 • 2007-08 9.3 36.8 38.1 1.3 2008-09 6. 7 32.0 34.3 2.3 • 2009-10 8.6 33.8 36.5 2.8 • 2010-11 9.3 34.0 36.8 2.8 • 2011-12 6.2 30.8 35.0 • 2012-13 (<7.6 est.) 5.0 N.A. N.A. • FY12-13 % change (prev. yr.): Agl: 1.8%(3.6);Ind.0.7%(2.9); Srvces: 6.6%(8.2) • FY11/12/13: % change: Inv: 14/4.1/5.1; Consumption: 8.1/8.1/4.1 • Source: Govt. Of India, Economic Survey 2009-10 , 2011-12 and 2012-13 • Note: Consequence: Rising Incremental Capital-Output Ratio (ICOR) in lower growth years. • Tainted higher growth under permissive corrput regime? : Increasing role of black money??

18. Indian Economy: Selected issues in Public Finance • Major Driving Forces of India’s Recent Higher Growth: • Economic Reforms since 1991 (uneven contents and pace for political economy reasons) • Big Rise in Savings & Investment Rates; contribution of Foreign Investment. • Changing Composition of GDP: Shift to faster growing tertiary & secondary sectors; • Likely DEMOGRAPHIC DIVIDEND for raising future growth rate • Education and Skill development through planned development and Public Sector institutions of higher learning with foundations in Science & Technology and R&D like: IISc; CSIR; IITs/ IIMs: Building blocks for Capital Goods industries and Knowledge Economy: IT and IT-es; Pharm; Biotech etc.. utilizing the dynamism of the private sector and leadership of selected PSUs like the HMT; BHEL; & NTPC in building k-goods industries and others in building infrastructure. • Dynamism of Private Enterprise supported by Liberalization; Globalization; and reforms; and expanding richer middle class and rural consumption exp • Participation and increasing Integration of Indian economy with global market economy: Look East; FTAs; Rise of Indian Multinational Enterprises and acquisitons overseas (like Tatas acquiring Corus and JLR and PIOs like LakhsmiMittalaquiringArcer(Arcer-Mittal). • MAJOR THREATS TO GOWTH: List Major (A) “Domestic Risks”; (B)“External Risks” (A): Contd. Inv. Slowdown; Contd. High volatile inflation; Populist Fiscal expansion; NPAs of PSU banks Note: Role of Complacency/Ignoring weakening eeconomy Signals; Policy Paralysis of the Government and lack of further necessary economic reforms under coalition Government form. (B): US slow growth/Fiscal cliff; No early Euro-zone revival; World Oil price movemts; Currency wars? Continuing unfavorable external environment.

19. Indian Economy: Selected issues in Public Finance World Output and trade: Projections: P. (% change) Group/Country 2011 2012 2013 P. 2014 P. Advanced economies 3.9 3.2 3.5 4.1 • U.S.A. 1.6 1.3 1.4 2.2 • Euro Area 1.4 -0.4 -0.2 1.0 Emerging & Devg. Econ. 6.3 5.1 5.5 5.9 • China 9.3 7.8 8.2 8.5 • India 7.9 4.5 5.9 6.4 World Trade(g&s) volume 5.9 2.8 3.8 5.5 Source: IMF: World Economic Outlook, January 2013

20. Indian Economy: Selected issues in Public Finance • To tackle their economic and financial crises, USA and the Euro Zone concerned countries (along with other affected developing countries including India) have resorted to Keynsian formula of fiscal stimulus packages with very high public expenditure and monetary easing and inducing exchange rate depreciation. These measures have led to sovereign debt crisis in USA and several Euro Zone countries and to potential inflation due to excess liquidity and impending threats of creating asset bubbles (property/other assets) • USA and the EU in particular have been exerting pressure on China to revalue its significantly “undervalued” currency Yuan (Renminbi) as a step towards rebalancing global growth with stability. China is unwilling to drastically revalue its currency or to quickly give up its link to US$ in favor of floating exchange rate of Yuan. • Meanwhile fears of “currency wars” (competitive devaluations) are on the rise since latest Japan government interventions to stop Yen appreciation & ensure actual depreciation of yen/$ to spur growth.

21. Indian Economy: Selected issues in Public Finance • An objective and Realistic Assessment of India’s worsening economic performance since 2008: • We should not exaggerate the adverse impact of global slowdown since 2008. Indian economy started slowing down even before eruption of Lehman bankruptcy in USA in 2008. Examine the major role played by India’s domestic policy paralysis (deferring new economic reforms; infra constraints; over-spending on social welfare programs; and obstacles created in India’s growth due to lack of clearances to industrial projects in mining; infrastructure projects (esp. roads); delays in approved government project expenditures; high interest rate regime due to compulsions to control inflation; corruption/scams increasingly noticed:2G; C-W Games; mining/coal; unwise proposed retrospective GAAR (General Anti Avoidance Rules introduced in the Budget for 2012-13 (now deferred for 3 years); and obstacles created both by coalition partners ofUPA-2 ;and the opposition parties: There is a return of License permit raj in required environmental clearances; adverse effect on investment climate, both domestic and FDI. : Case Study: POSCO’s $ 12 billion investment in steel project in Orissa awaiting all clearances for more than 7 years: Other examples of stalled investment projects.

22. Indian Economy: Selected issues in Public Finance • The continuous eruption of corruption based business and other scandals in the Indian governance system involving certain Ministers; influential and powerful politicians in power in Centre and the States; and non-cordial Centre-State economic relations have led bureaucrats and the Ministers not making quick decisions in the interests of reviving the Indian economic growth quickly and believing that they are doing their best under their constraints has not helped solving the problems .

23. Indian Economy: Selected issues in Public Finance • New Policy Initiatives taken by new Finance Minister Mr. P. Chidambaram to revive growth; improve investment sentiment: FDI • Recognizing the gravity of the deteriorating economic conditions affecting growth and investment climate esp. FDI, Chidambaram has activated government in 2012 to take several new policy initiatives to revive growth and to improve its electoral prospects. • These include, among others: (i) Acceptance of reduction of Fiscal deficit proposed by Kelkar committee (Diesel price hike ); (ii) Deferment of GARR up to March 2015; (iii) Liberalization of FDI in multi-brand retail; and (iv) Road shows in selected countries to attract FDI on liberal terms; (iv) A pro-investment and pro-growth Budget formulated for 2013-14. • Recognizing that a beginning has been made to improve economic Performance, the big question is on the effective implementation of the policy pronouncements and response of the investors and undertaking further required economic/governance reforms or their wait and watch attitude towards investment decisions pending results of 2014 elections?

24. Indian Economy: Selected issues in Public Finance • Suggested Readings: • Govt. of India, Economic Survey 2012-13 • International Monetary Fund, World Economic Outlook, January 2013. • Jagdish BHAGWATI and Arvind PANAGARIYA: India: Emerging Giant, Oxford University Press, 2005. (See also full Bibliography) • Arvind PANAGARIYA (Co-author), India: Tryst with Destiny, 5 volumes, Same Publishers (OUP?), 2012 (See also full Bibliography)

25. Indian Economy: Selected issues in Public Finance • MODULE 2: SELECTED FOCUS ON PUBLIC FINANCE ISSUES AND ACCOUNTABILITY OF THE GOVERNMENT OF INDIA: • Government’s Accountability for fiscal prudence and improved fiscal marksmanship • Fiscal Responsibility and Budget Management Act and Revised Roadmap for fiscal consolidation

26. Indian Economy: Selected issues in Public Finance • 3. The Conceptual Shift from Fiscal “ Outlays” to Fiscal “Outcomes” in fiscal management. • 4. The setting up of “Independent Evaluation Office” (IEO). • 5. The most significant reform move towards launching all-India “Goods and Services Tax” under our Federal structure sharing tax revenues by the Union with the States.

27. Indian Economy: Selected issues in Public Finance • 6. Reforming Direct Taxes by the proposed “Direct Taxes Code” (DTC). • 7. Fiscal Implications of eliminating import tariffs by extensions of India’s Free Trade Areas (FTAs); Comprehensive Economic Cooperation Agreements (CECAs); and Comprehensive Economic Partnership Agreements (CEPAs).

28. Indian Economy: Selected issues in Public Finance • 8. Fiscal Policy for controlling misuse of the so-called “Mauritius Route” (“Round Tripping” of Indian Investment as FDI) and non-resident foreign entities under Bilateral Tax Treaties). • 9. Fiscal Policy for controlling “Black Money”. • 10. Fiscal Policy for bringing back illegally stashed Indian money in foreign “Tax Havens”. • 11. Flagging Other issues in Fiscal Policy.

29. Indian Economy: Selected issues in Public Finance • 1. Government’s Accountability for fiscal prudence and improving fiscal marksmanship. Crucial Question: Who will regulate government for “government failures” and with what corrective mechanism and penalties for accountable Ministers/officials operating the system of governance ? • Transparency and Accountability are the prime responsibilities of the fiscal authority in the Govt.. The present system has serious weaknesses. Need for changing the “mindset” of concerned decision makers in governance. • Catalytic role of Public Action: Bhagidari in governance . • The concept/quality of “Fiscal Marksmanship” as articulated in the latest Economic Survey is “narrow” in its coverage and needs broadening.

30. Indian Economy: Selected issues in Public Finance • 2. Fiscal Responsibility and Budget Management (FRBM) Act and the Revised Roadmap for Fiscal Consolidation (as per Vijay Kelkar chaired Committee). • While there had been some notable progress towards fiscal consolidation in the first few years of the enactment of the FRBM Act, the slippages have been generally widening in the proportion of Fiscal Deficit to GDP in India since the global financial crisis that originated from Lehman bankruptcy in USA in 2008. The Reasons. • Financial Engineering: New concept: Effective Rev. Dfct.

31. Indian Economy: Selected issues in Public Finance: Deficits of “Central” Govt. as % of GDP

32. Indian Economy: Selected issues in Public Finance: Deficits of “Central” Govt. as % of G.D.P.

33. Indian Economy: Selected Issues in Public Finance • Structural Problems/Current unsustainable High Twin Deficits (High Fiscal Deficit and more seriously High Current Account Deficit) in Public Finances of India: Threat: downgrade crdt. Rating. • Despite “Tax Buoyancy”, higher Expenditure Buoyancy. • Revenue deficits (“undesirable”) growing and increasing as proportion of Gross Fiscal Deficit in several years. • Current levels of unsustainably Fiscal Deficit accentuating Inflationary pressures under lower growth profile leaving little elbow room for the RBI to lower key interest rates for supporting higher growth possibilities. • Foreign Inv. flows affecting Sensex/Exch. Rate movements depicting volatility

34. Indian Economy: Selected issues in Public Finance • The current Finance Minister Mr. P. Chidambaram has shown serious interest in controlling Fiscal Deficit as a proportion of GDP in 2012-13 by bringing it to R.E. of 5.2% against target of 5.3% by mostly curtailing or deferring plan expenditure (“ anti-growth”?). He has also given signals to foreign investors and international credit rating agencies of his commitment to adhere to the revised roadmap of fiscal consolidation up to 2015 recommended by the Kelkar Committee. • Efforts are being made to reduce CAD by policy liberalization to attract inward inflows of FDI and FII as prospects for raising export growth currently are low. • Forthcoming 2014 General Elections may raise Fiscal Dfct.

35. Indian Economy: Selected issues in Public Finance • 3. Shift from Fiscal “Outlays” to “Outcomes” • Announced launching of this conceptual shift in fiscal management and budget orientation in the Budget speech of the then Finance Minister Mr. P. Chidambaram on 28 Feb. 2005. • “outcome Budgets” process launched with the help of Planning Commission. Guidelines issued. • The first “Outcome Budget” for 2005-06 was presented on 25 August 2005 and are being presented thereafter. • Purposeful initiative envisaging participation by the civil society: Problems have come in implementation by the concerned Ministries

36. Indian Economy: Selected issues in Public Finance • Anand P. Gupta after studying the “Outcome Budgets” (OB) and conducting case studies concludes that the “OB has failed”. He has opined that the guidelines do not go far enough in ensuring the achievement of the envisaged objectives of such budgets. There is both a capacity gap in the concerned bureaucrats in several Ministries as also lack of effective interest in improving the quality of such outcome budgets. So, “OB has failed”.

37. Indian Economy: Selected issues in Public Finance • The apparent failure of OB initiative has been explained by Mr. Chidambaram as follows: • “the Government of India has substantially expanded outlays in sectors like irrigation, education and health, but kept on following the existing ‘tried and tested’ system, as a result of which the outcome of these enhanced outlays is not visible at the ground level” (As reported in the Times of India dated December 3, 2007).

38. Indian Economy: Selected issues in Public Finance • 4. The setting up of “Independent Evaluation Office” (IEO). • Allied to the conceptual innovation of launching “Outcome Budgets”, the then Finance Minister, Mr. PranabMukherjee in his speech for the Budget 2010-11 announced the setting up of an Independent Evaluation Office (IEO). • The IEO was tasked to undertake “impartial and objective assessments of the various public programmes and improve the effectiveness of the public interventions. It has been decided that it would be an independent entity under a Governing Board chaired by the Deputy Chairman, Planning Commission. The IEO would evaluate the impact of the flagship programmes and place the findings in the public domain. It would be funded by the Planning Commission”.

39. Indian Economy: Selected issues in Public Finance • As Anand Gupta has observed, the IEO, welcome and needed intervention, is yet to be set up? However, Gupta is skeptical on the likelihoood of the IEO to fulfill its designated role. And for the same reasons too. The lack of culture in our system of governance and the mindset of those who wield power and are the decision makers is the biggest obstacle to make the IEO effective. The concerned decision makers in their heart do not wish to be evaluated. They are unwilling to provide whole-hearted cooperation to such unwelcome interventions in their entrenched way of work. The political will and the effective leadership in our governance system are absent. Who will bell the cat? • Some critics also question the “independence” of the IEO on ground reality.

40. Indian Economy: Selected issues in Public Finance • 5. Replacing existing system of indirect taxes on the domestically produced goods and services by the All India Goods and Services Tax (GST) as per international norms modified to suit the Indian federal structure under our Constitution. • The GST is the single most important reform in the Indian Public Finance that will transform the presently fragmented Indian market to a truly functioning “Single common market”. This reform alone, when effected, has the potential to generate an additional 2.0 to 3.0 per cent of GDP.

41. Indian Economy: Selected issues in Public Finance • The proposed GST has been under negotiation between the Union Government and the State Governments for last several years. Since it plans to change the entrenched existing complex system of indirect taxation of domestically produced goods and services and involves the consensus of the Union Government and all State Governments (currently ruled by different political parties or coalition governments), getting complete consensus on this complex issue, requiring some Constitutional Amendments, is proving to be a more difficult task than imagined earlier and taking more time. • Despite, the Union Government making some concessions to allay the fears of the concerned State governments on the likely loss of revenues to them from some proposals, efforts are continuing to so re-design the structure of the GST that consensus will emerge fairly soon that will make it acceptable to all parties involved.

42. Indian Economy: Selected issues in Public Finance • 6. Reforming the current Direct Taxes regime by the proposed “Direct Taxes Code” (DTC). • The proposed “Direct Taxes Code” (DTC) replacing the provisions of the Income Tax Act of 1951 as modified from time to time has been there with the nation for some years now. The DTC aims to rationalize the system of direct taxes to bring it to the prevailing international standards for delivering a better system meeting international benchmarks. It is also designed to remove certain anomalies in the existing provisions of the Income Tax.

43. Indian Economy: Selected issues in Public Finance • The draft of the DTC has already gone through several revisions. These have been agreed to by the concerned stake holders. However, there are still some unresolved issues under “Exempt, Exempt, Exempt” at three stages of certain types of incomes from assets (like the Public Provident Fund) which need to be resolved for the final adoption of the DTC. • It is difficult to explain the further delay in striking full agreement on a welcome reform under DTC.

44. Indian Economy: Selected issues in Public Finance • 7. Fiscal Implications of eliminating import tariffs by extensions of India’s Bilateral and Regional “Free Trade Areas” and related arrangements to reap advantages of closer integration with the target country/countries. India has emerged as a more confident economic power to shed fears of further reduction in tariff rates on imports and from the countries with whom it has signed or is in the process of signing agreements involving free trade area in goods and/or services (FTAs); comprehensive economic cooperation agreements (CECAs); and comprehensive economic partnership agreements (CEPAs).

45. Indian Economy: Selected issues in Public Finance • 8. Discussion on: • Fiscal Policy for controlling misuse of the so-called “Mauritius Route” (e.g. for “Round Tripping” of Indian Investors disguised as Foreign Direct Investment) and misuse by the non-functional foreign entities claiming to be residents in Mauritius for claiming tax exemption benefits under bilateral treaty. • Some of the contentious issues relating to FDI using the Mauritius route have now been resolved by mutual India-Mauritius agreement.

46. Indian Economy: Selected issues in Public Finance • Issues flagged for Discussion(time permitting): • 9. Fiscal Policy for controlling “Black Money” • 10. Fiscal Policy for bringing back to India illegally stashed Indian money in foreign “tax havens” (like Switzerland; the Bahamas; etc.). • 11. Any Other related issues to be raised by the viewers/listners.

47. Indian Economy: Selected issues in Public Finance • Selected References to Module-2: • 1. Government of India, Economic Survey 2012-13. • 2. Anand P. Gupta, “Evaluation of Governance: A Study of the Govrnment of India’s Outcome Budget”, Journal of Development Effectiveness December 2010, pp. 566-573 (Routledge: Taylor & Francis Group Publication). • VinodVyasulu, Reflections on Budgets and Governance of India, New Delhi: Centre for Budget and Governance Accountability, July 2012. • Mahesh Purohit, Book on Goods and Servies Tax. __________________________________________