Divy Rangan

The empirical evidence of flypaper effects in the ecological fiscal spending in India is examined. Using the panel data models, it is analysed whether the intergovernmental fiscal transfers, or the states’ own income, determine the expenditure commitments on ecology at the state level. The econometric results show that the intergovernmental fiscal transfers rather than the states’ own income determine ecological expenditure at subnational levels in India. The results hold when the models are controlled for ecological outcomes and demographic variables.

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COVID-19 Economic Stimulus and State-level Performance of Power Distribution Companies

Vol. 56, Issue No. 43, 23 Oct, 2021

Amandeep Kaur, Lekha Chakraborty, Divy Rangan

As part of the COVID-19 economic stimulus package, the Government of India increased the borrowing limit of the states from 3% to 5% of the gross state domestic product. The power sector reform at the state level is one of the criteria to avail this extra borrowing. The efficiency parameters of the power sector are analysed here, and it is observed that there are statewise differentials in the financial and operational parameters. The average aggregate technical and commercial losses that should have been 15% by 2018–19, presently, on average, stand at 26.15%. The average cost of supply–average revenue realised has also widened. The operational parameters indicate widening inefficiencies across states in the power infrastructure.