Abstract
We analyse the fiscal marksmanship of the macro-fiscal variables, ex-ante to the formulation of fiscal rules in India. The fiscal marksmanship is the accuracy of budgetary forecasting. The fiscal rules have been legally mandated in India in the form of fiscal responsibility and budget management Act (FRBM Act) in 2003, with a criteria of fiscal-deficit threshold ratio of 3 per cent of GDP and also phasing out of revenue deficit. Using Theil’s inequality coefficient (U) based on the mean square prediction error, the paper estimates the magnitude of errors in the budgetary forecasts in India during the period ex-ante to fiscal rules, and also decomposed the errors into biasedness, unequal variation and random components to analyze the source of error. The proportion of error due to random variation has been significantly higher (which is beyond the control of the forecaster), while the errors due to bias has been negligible in the period prior to fiscal rules in India. The analysis related to efficiency of forecasts also showed that no significant improvement in forecasts over time prior to fiscal responsibility and budget management (FRBM) Act.
Highlights
Sharing is a key component in building knowledge in organizations (Cabrera and Cabrera, 2005; Foss, Husted, and Michailova, 2010)
The results from table 2 indicate we find that knowledge sharing and HR practices (HRP) have a strong correlation with individuals’ work performance
The results suggest that individuals will adopt knowledge sharing more if they know that it has an impact on their work performance and having better work performance leads to a higher knowledge sharing creating a virtuous spiral
Summary
Sharing is a key component in building knowledge in organizations (Cabrera and Cabrera, 2005; Foss, Husted, and Michailova, 2010). Foss et al (2010) show that the knowledge sharing literature is preoccupied with constructs, processes, and phenomena defined at a macro level and pay comparatively little attention to the micro level. Knowledge is one of the most important resources in modern firms, the research contains a wide range of definitions on knowledge management. Teece (2000) describes knowledge management as a set of procedures and techniques used to create, transfer, use, and protect the organization’s knowledge. As a result, controlling knowledge is critical and can be the source of an organization’s power (Carrión, Gonzáles and Leal, 2004) and competitive advantage (Nonaka, 1994)
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