The primary objective of rule-based fiscal legislation at the subnational level in India is to achieve debt sustainability by placing a ceiling on borrowing and the use of borrowed resources for public capital investment by phasing out deficits in the budget revenue account. This paper examines...

This paper reviews the debate over fiscal rules and specifically balanced-budget requirements with regards to sub-national (state/regional) government. It will be argued that fiscal rules, if properly designed, can play an important role in balancing the relations between central and...