{
  "title": "India’s Experience with Fiscal Rules: An Evaluation and The Way Forward",
  "publication": "IMF Working Papers, August 1, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/indias-experience-with-fiscal-rules-an-evaluation-and-the-way-forward-23185",
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  "summary": "This paper examines India's experience with fiscal rules with a view to inform the design of a possible successor fiscal framework to the FRBMA.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- This paper examines India's experience with fiscal rules with a view to inform the design of a possible successor fiscal framework to the FRBMA.\n- Among several proposals to strengthen the FRBMA, a framework that focuses medium-term fiscal policy on debt sustainability by the use of a medium term debt target, and annual nominal expenditure growth rules is proposed.\n- This approach tackles the deficit bias at its core and enables countercyclical fiscal policy through automatic stabilizers.\n- Numerical targets should be supported by structural reform measures for both revenues and expenditures, while the coverage of the fiscal rules should be expanded."
    },
    {
      "heading": "Major findings and analysis",
      "content": "- Emphasis on debt sustainability as the central objective of medium-term fiscal policy.\n- Proposal to combine:\n  - a medium term debt target, and\n  - annual nominal expenditure growth rules.\n- The proposed framework is intended to:\n  - tackle the deficit bias,\n  - enable countercyclical fiscal policy through automatic stabilizers,\n  - require numerical targets to be supported by structural reform measures for revenues and expenditures,\n  - expand the coverage of the fiscal rules."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Adopt a medium-term debt target as the anchor of fiscal policy.\n- Implement annual nominal expenditure growth rules to control fiscal expansion.\n- Support numerical fiscal targets with structural reforms on both revenue and expenditure fronts.\n- Expand the coverage of fiscal rules to reduce scope for off-budget or circumventing measures.\n- Preserve scope for countercyclical policy via automatic stabilizers within the rules-based framework."
    },
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      "heading": "Publication and metadata",
      "content": "- Authors: Alejandro Simone, Petia Topalova\n- Date: August 1, 2009\n- Series: Working Paper No. 2009/175\n- Issue: 175\n- Volume: 2009\n- Pages: 40\n- DOI: https://doi.org/10.5089/9781451873221.001\n- Stock No: WPIEA2009175\n- ISBN: 9781451873221\n- ISSN: 1018-5941\n- Subject: Expenditure, Fiscal consolidation, Fiscal policy, Fiscal rules, Public debt\n- Keywords: borrowing regime, country, deficit, government, government finances, Includes, state government, WP\n\nIMF Working Paper — Alejandro Simone and Petia Topalova, \"India’s Experience with Fiscal Rules: An Evaluation and The Way Forward\", August 1, 2009.\n\n---\n\n Content in this bundle\n\n- wp09175\n  - wp09175 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp09175 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/indias-experience-with-fiscal-rules-an-evaluation-and-the-way-forward-23185"
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    "Authors: Alejandro Simone, Petia Topalova",
    "Published: August 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451873221.001",
    "This paper examines India's experience with fiscal rules with a view to inform the design of a possible successor fiscal framework to the FRBMA.",
    "Among several proposals to strengthen the FRBMA, a framework that focuses medium-term fiscal policy on debt sustainability by the use of a medium term debt target, and annual nominal expenditure growth rules is proposed.",
    "This approach tackles the deficit bias at its core and enables countercyclical fiscal policy through automatic stabilizers.",
    "Numerical targets should be supported by structural reform measures for both revenues and expenditures, while the coverage of the fiscal rules should be expanded.",
    "Emphasis on debt sustainability as the central objective of medium-term fiscal policy.",
    "Proposal to combine:",
    "The proposed framework is intended to:",
    "Adopt a medium-term debt target as the anchor of fiscal policy.",
    "Implement annual nominal expenditure growth rules to control fiscal expansion.",
    "Support numerical fiscal targets with structural reforms on both revenue and expenditure fronts.",
    "Expand the coverage of fiscal rules to reduce scope for off-budget or circumventing measures.",
    "Preserve scope for countercyclical policy via automatic stabilizers within the rules-based framework.",
    "Authors: Alejandro Simone, Petia Topalova",
    "Date: August 1, 2009",
    "Series: Working Paper No. 2009/175",
    "Issue: 175",
    "Volume: 2009",
    "Pages: 40",
    "DOI: https://doi.org/10.5089/9781451873221.001",
    "Stock No: WPIEA2009175",
    "ISBN: 9781451873221",
    "ISSN: 1018-5941",
    "Subject: Expenditure, Fiscal consolidation, Fiscal policy, Fiscal rules, Public debt",
    "Keywords: borrowing regime, country, deficit, government, government finances, Includes, state government, WP",
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