We examine how the source of foreign aid affects the composition of the recipient government's spending. Does the source of aid--bilateral or multilateral--influence recipient policy-makers' choice between development and nondevelopment expenditure? We depart from previous literature by...

This paper underscores the substantial spatial disparities across India and evaluates the case for putting together (various versions) of the Goods and Service Tax (GST) and also indicates the risks involved in the process. This paper argues that, on balance, there is a case for an appropriately...

Revenue generation is an important goal of tax reform. The built-in responsiveness of revenues to changes in income, tax elasticity, provides very critical information for tax policy formulation. This paper utilises a time series approach to empirically estimate tax elasticities for India for...

By providing a conducive policy environment in the early days, the Government tried to build a base for the fertilizer industry by encouraging fertilizer products' consumption and distribution. But all these caused a high cost on Government as the subsidy out goes to the sector was mounting....

Domestically manufactured mobile handsets would attract Excise duty of 1% along with 1% of NCCD (in case no CENVAT credit on inputs or capital goods or input services used was availed) as against the imported mobile handsets which would attract a levy of 12.5% CVD. Accordingly, mobile phones...

The objective of this essay is to examine and explain possible drawbacks of the goods and services tax (GST) introduced in India on July 1, 2017. To get a comparative picture of its vulnerability to tax evasion, data for the OECD countries in the 1990s and also the Indian state VAT earlier this...

Global experience shows that GST serves as a best tax system that contributes towards the revenue generating activities of the government; which might be one of the possible reason for being implemented in India. As implementation of GST is getting momentum in India. This study is attempts to...

Recently, the Empowered Committee of State Finance Ministers released the First Discussion Paper on Goods and Services Tax in India. This discussion paper is the result of three years of deliberations between policy makers of the Central Government and State Governments to herald the Indian...

Uttar Pradesh most populous State experienced almost the same pattern of fiscal deterioration as did the other States. In the beginning of the nineties all the fiscal parameters were showing the deficit of significant magnitude. As there was no effort on the part of the State such imbalances...

Using a new tax on fringe benefits initiated in India in 2005, this paper seeks evidence for the hypothesis that the difference in higher marginal tax rates on wages, relative to lower rates on fringe benefits, induces a reallocation of the total compensation package toward fringe benefits....