Fiscal Consolidation in Chhattisgarh: An Analytical Study

Abstract

The process of fiscal consolidation has become a burning issue among the developing countries from last few decades. On the one hand, governments have limited source of income, while on the other hand they have to maintain a large number of public expenditure. FRBM Act provides a legal institutional framework for fiscal consolidation. Chhattisgarh has experienced a downward trend in his fiscal deficit-to-GSDP ratio, except in the starting years. The burden of the public debt-to-GSDP ratio is also downwards. In this context, an attempt is made in the paper to know the fiscal consolidation strategy of the Chhattisgarh state, using different fiscal indicators.