Macroeconomic stability is an indispensable precondition for growth. Like most of the states of India the fiscal situation of Orissa deteriorated in the early 1980s and 1990s. The enactment of the Fiscal Responsibility and Budget Management (FRBM) Act in 2005 helped the Government of Orissa to...

India's fiscal problem has deep roots in its federal fiscal system where multiple players face the problem of co-ordination. The root causes of the endemic fiscal crisis by both centre and states are to be found in the simultaneous pursuit of fiscal objectives and policies which are in...