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Building a Fit for Purpose Fiscal Architecture for India

The state of State finances lies at the center of the public policy discourse in India. However, they rarely receive adequate consideration especially in debates on designing public finance management, fiscal rules and on the nature of planning and budget in 21st-century policymaking. This session will seek to dive into these questions through a focus on State finance. It will traverse questions of fiscal federalism and shifts that have occurred in state finances on account of GST. Crucially, it will focus on the challenge of fiscal management at the State level. While the debate on fiscal rules and the macro fiscal framework find significant place in debates at the national level, the role of state governments and specifically the need to design an appropriate, decentralised framework for fiscal management has less discussion at the State level. This panel will seek to touch upon these issues. The panel will begin with a presentation on the findings from the India Manifesto Project that maps out Lok Sabha election manifestos of the Congress, the BJP and the CPI(M) since 1952. The three parties represent the ideological spectrum of Indian politics, and the study maps the evolution of issues that matter to Indian democracy.