Efficiency effectiveness and budgeting in fiscal outlay a comparative analysis of Indian states

Abstract

The present study is an attempt in the direction of devising a procedure to evaluate the performance of a decision making unit, say a government. This conceptualisation, named as budgeting efficiency effectiveness (BEE) Paradigm, proposes to combine various categories of fiscal inputs and outputs under window based three-stage output oriented non-radial nonconcave metafrontier network data envelopment analysis to evaluate the performance of Indian states in managing fiscal outlay quality (FOQ). The data related to 27 states of India is examined with 2011-12 as base year for the period of 2001-2015. The empirical analysis indicates that the group specific variations are statistically significant and hence the use of nonconcave metafrontier technique is justified. The Non-special category (NSC) and special category (SC) states differ significantly in terms of metafrontier network efficiency scores and the same is statistically tested by executing multilevel Tobit model, for its significance. The present study opens various avenues for future research, thereby, expanding the horizon and application of BEE Paradigm. newline