Enhancing Fiscal Transparency and Reporting in India

Author/Editor:

Patrick Blagrave ; Fabien Gonguet

Publication Date:

November 13, 2020

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Current fiscal transparency and reporting practices in India place it behind most peer G20 economies, implying that policy makers are lacking critical data to ground their fiscal and other economic planning decisions. The increasing use of off-budget financing at the central government level in recent years represents one key example of reduced transparency—we provide estimates of the public sector borrowing requirement and an extended notion of the fiscal deficit, each of which shows a more expansionary stance in recent years than ‘headline’ deficit figures presented in budget documents. We then investigate the current state of fiscal reporting practices in India and suggest areas for reforms—these include enhanced IT systems, stronger central-local coordination, and a gradual transition to accrual accounting.

Series:

Working Paper No. 2020/250

Subject:

Frequency:

regular

English

Publication Date:

November 13, 2020

ISBN/ISSN:

9781513559599/1018-5941

Stock No:

WPIEA2020250

Format:

Paper

Pages:

21

Please address any questions about this title to publications@imf.org