An analysis of budgetary subsidies in Haryana

Abstract

In the present study, the estimates of budgetary subsidies were obtained for selected years during the post reform period for Haryana using Srivastava and Rao (2003) methodology. Reclassification of implicit budgetary subsidies according to externalities was also performed. Lastly, the relationship between state explicit subsidies and fiscal burden was studied along with relationship between state explicit subsidies with economic growth. The study revealed that the recovery rates, even for non-merit services were very low. An increase in user charges would substantially mitigate pressures on the fiscal deficit. newline