The Indian Economy Since 1991, 2nd Edition

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Finances of the Central Government (1991–2010)

M. R. Anand*

Fiscal reforms have been an integral part of the economic reforms launched in India in the early 1990s. These reforms have impinged on all aspects of the fiscal policy and altered the pattern of revenues and expenditure of the government. The enactment of the Fiscal Responsibility and Budget Management Act (FRBMA) in 2003 was an important milestone in the area of fiscal reforms in India, as it provided a statutory basis for fiscal management.

This chapter aims at providing an expository account of the fiscal trends in India in the light of the policy changes since 1991. The scope of discussion is limited to analysing trends in the finances of the union government.¹ Further, the macroeconomic ...