An anaysis of sub national public expenditure in India pre and post FRBMA

Abstract

The current study is a sub-national study of public expenditure of the selected Indian states, in the pre and post FRBMA period from 1990- 91 till 2018-19. Findings of the study indicate an expansion in both revenue and capital expenditure in the post FRBMA period as compared to the pre FRBMA period for the selected states. Granger causality results reveal the existence of Wagner s Hypothesis in Haryana, no causality in Andhra Pradesh and bidirectional causality between economic growth and public expenditure in Bihar. Quality of public expenditure including its efficiency in the Indian states leaves much to be desired. newline