Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 11
First page : ( 17) Last page : ( 31)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2014.00970.0

Understanding Constitutional Framework of Inter-Governmental Borrowing in India

Dr. Sharma Aribam. Devidas

Assistant Professor, Department of Economics, Manipur College, Imphal, India.

Abstract

In the literature of public debt we find a fairly developed theoretical framework of public debt in general. The general theory of public debt has given considerable importance to the burden of public debt i.e. the burden of interest on loans and repayments of principal on the economy and people of present as well as future generations. Many of these generalizations have been empirically tested and certain broad guidelines for government public debt policy are recommended. However we do not have economic theory of intergovernmental public debt as yet. Though the theory of fiscal federalism has developed to a high level of sophistication, theory of intergovernmental debt remains neglected. Hence it is necessary to have a closer look into intergovernmental debt operations, based on the general theory of public debt on the one hand and theory of fiscal federalism on the other.

Top

Keywords

Fiscal Federalism, Union Loans, intergovernmental public debt, borrowing cap.

Top