Enhancing Fiscal Transparency and Reporting in India

22 Pages Posted: 5 Jan 2021

See all articles by Patrick Blagrave

Patrick Blagrave

International Monetary Fund (IMF)

Fabien Gonguet

International Monetary Fund (IMF)

Date Written: November 2020

Abstract

Current fiscal transparency and reporting practices in India place it behind most peer G20 economies, implying that policy makers are lacking critical data to ground their fiscal and other economic planning decisions. The increasing use of off-budget financing at the central government level in recent years represents one key example of reduced transparency-we provide estimates of the public sector borrowing requirement and an extended notion of the fiscal deficit, each of which shows a more expansionary stance in recent years than ‘headline' deficit figures presented in budget documents. We then investigate the current state of fiscal reporting practices in India and suggest areas for reforms-these include enhanced IT systems, stronger central-local coordination, and a gradual transition to accrual accounting.

JEL Classification: H10, H60, H83, H63, H61

Suggested Citation

Blagrave, Patrick and Gonguet, Fabien, Enhancing Fiscal Transparency and Reporting in India (November 2020). IMF Working Paper No. 20/250, Available at SSRN: https://ssrn.com/abstract=3758084

Patrick Blagrave (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Fabien Gonguet

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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