Open Access Open Access  Restricted Access Subscription or Fee Access

The Global Financial Crisis And India’s Policy Development For Public Expenditure Management

Mithun Barua

Abstract


The global financial crisis started in the USA and then gradually affected the entire world with a major effect on the Euro zone economies. The Asian economies also came under the influence of the global financial crisis. The Indian economy, considered the fastest growing economy of the world was not severely affected by the global financial crisis. The Government of India and various State governments came up with austerity measures in order to manage and curb public expenditure. A new policy initiative and push was witnessed in India with regard to the public expenditure management. But the policy initiatives for public expenditure management would be successful only when these are properly and effectively managed and implemented by the government organizations. In this paper, ten questions/ areas contributing towards public expenditure management are identified. Than the responses of the Financial Advisors & Chief Accounting Officers (FA&CAO) of different organizations of Government of India and nine State governments are collected. The responses of FA&CAO are than analyzed and concluded. It is found that the various orders and circulars of the Government advocated for measures which would bring efficiency and prudence in public expenditure management. But the ground reality of their implementation is still far behind than designed and anticipated. 


Keywords


Public Expenditure Management (PEM), Global financial crisis, Government of India (federal government), State Governments (Government of federal units), FA&CAO.

Full Text:

PDF

References


Bajpai, N. (2011). Global Financial Crisis, its Impact on India and the Policy Response, Working Paper No. 5. Columbia Global Centre/South Asia, Columbia University, Mumbai.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2008) Expenditure Management: austerity measures with respect to foreign travel. New Delhi, Order No. F.No.23(2)/E.Coord./2008, dt 13th June, 2008.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2008) Expenditure Management: Economy Measures and Rationalization of Expenditure. New Delhi, Order No. F.No.7(1)/E.Coord./2008, dt 1st October, 2008.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2008) Expenditure Management - Economy Measures and Rationalization of Expenditure – guidelines related to LTC. New Delhi, Order No.7(1)/E.Coord./2008, dt 10th November, 2008.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2009) Expenditure Management. New Delhi, Order No. F.No.66(16)/PF- II./2009, dt 24th July, 2009.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2009) Expenditure Management: Economy Measures and Rationalization of Expenditure in autonomous bodies-reg. New Delhi, Order No. F.No.7(1)/E.Coord./2009, dt 8th September, 2009.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2011) Expenditure Management: Economy Measures and Rationalization of Expenditure. New Delhi, Order No. F.No.7(1)/E.Coord./2011, dt 11th July, 2011.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2011) Expenditure Management: Economy Measures and Rationalization of Expenditure in Autonomous Bodies. New Delhi, Order No. F.No.7(1)/E.Coord./2011, dt 2nd August, 2011.

GOVERNMENT OF INDIA. PLANNING COMMISSION. MINISTRY OF FINANCE (2011) Report of the High level Expert Committee on Efficient Management of Public Expenditure. New Delhi.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2012) Expenditure Management: Economy Measures and Rationalization of Expenditure. New Delhi, Order No. F.No.7(1)/E.Coord./2012, dt 31st May, 2012.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2012) Expenditure Management: Economy Measures and Rationalization of Expenditure. New Delhi, Order No. F.No.7(1)/E.Coord./2012, dt 12th July, 2012.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2012) Expenditure Management: Economy Measures and Rationalization of Expenditure. New Delhi, Order No. F.No.7(1)/E.Coord./2012, dt 1st November, 2012.

GOVERNMENT OF INDIA. DEPARTMENT OF EXPENDITURE. MINISTRY OF FINANCE (2012) Expenditure Management: Economy Measures and Rationalization of Expenditure. New Delhi, Order No. F.No.7(1)/E.Coord./2012, dt 14th November, 2012.

JBIC (2001). India: Fiscal Reforms and Public Expenditure Management. Japan Bank for International Cooperation (JBIC), September 2001, Paper No. 11.

Premchand, A (2009). Control of Public Money: The Fiscal machinery in developing countries. Oxford.

Rajya Sabha. Parliament of India (2009). Global Economic Crisis and its Impact on India, Rajya Sabha Secretariat, New Delhi, June 2009, Occasional Paper Series 4.

Ramji, V, Sujatha, Suresh and V.K Srinivasan (2001). A Study on Management of Public Expenditure by State Governments in India. The Indian Institute of Economics, Hyderabad, India.


Refbacks

  • There are currently no refbacks.


Print Version ISSN 0975-3931

Online Version ISSN 2278-1277