The Government of India has recently announced that Kerala, Punjab, and West Bengal are fiscally unsound at the level of general category states. The study reviews this projection and assesses their financial stability and sustainability along the debt-deficit spiral over time. [IEG Working...

Fiscal health of subnational governments is a priority area of concern in the contemporary policy debate in India. The central government has recently announced that Kerala, Punjab and West Bengal are fiscally unsound at the level of general category states. The study reviews this projection by...