Keynes and Fiscal Federalism in India: History, Ideology and Practice

RBI organises 4 memorial lectures:

NK Singh delivered the 17th LK Jha Memorial lecture.

It is interesting and odd how all of these lectures have been given by scholars and policymakers based elsewhere. All these years, there has not been a single lecture from an academic/policymaker based in India.

N.K. Singh happens to be the first speaker in these lectures who is currently serving as the chair of the 15th Finance Commission. Not surprisingly, Mr Singh chooses to speaks on fiscal federalism (Sharing of financial resources between Central Government, State Governments and Local governments). Fiscal federalism has become an important topic of late given the late addition to its terms of reference.

At the end of his lecture, Mr Singh quotes Keynes which sums up the evolution of fiscal federalism in India:

In the context of remark that markets may remain irrational longer than I can remain solvent, John Maynard Keynes is reported to have remarked that when facts and circumstances change, I change my mind – what do you do?

The facts and circumstances on Fiscal Federalism have changed. Time to change our mind.

The lecture points to some of these changes. Read the whole thing…

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: