Volume-XI, Issue-II, March 2025 |
FRBM Act and Fiscal Performance: A case study of Assam State Finance Ms. Durga Devi, Asst. Prof, Dept. of Economics, Doomdooma College, Rupai Siding, Tinsukia District, Assam, India |
Received: 20.02.2025 | Accepted: 20.03.2025 | Published Online: 31.03.2025 | Page No:282-292 | ||||
DOI: 10.29032/ijhsss.vol.11.issue.02W.026 | |||||||
ABSTRACT | ||
Deteriorating fiscal indicators at both central and state level during 1990s has been a major cause of concern for both policy makers and researchers in India. The states have initiated fiscal reforms to bring fiscal discipline at the state level. Similarly, Assam has also initiated a series of fiscal reform measures. In this back drop the paper examines the fiscal performance of Assam after the implementation of the Fiscal Responsibility and Budget Management (FRBM) Act with the help of a Composite Index called the Assam Fiscal Performance Index (AFPI), as a metric. The study evaluates the period from 2000-2001 to 2021-22 to analyze the impact of fiscal reforms. The findings suggest an overall improvement in fiscal discipline post the FRBM Act. However, the study emphasizes the continued necessity for Assam to prioritize deficit management and enhance its revenue sources for sustained financial stability. The paper highlights the significance of striking a balance between expenditure and revenue for long-term fiscal health. Key words: Fiscal Consolidation, Composite Fiscal Performance Index, FRBM Act |