The Political Budget Cycle and Subnational Debt Expenditures in Federations: Panel Data Evidence from India

Saez, Lawrence

Abstract

What political variables explain variations in subnational fiscal expenditures on interest payments on the debt? The author argues that the political budget cycle and center‐right political party ideology—rather than the effective number of parties, alternation of power, ideological proximity between the central government and constituent units, or most forms of political party ideology—can help explain the level of expenditures on interest payment of subnational debt in India. The core empirical finding is that significant increases in expenditures on the debt occur the year in which a state assembly election is held in India.

Citation

Saez, L. (2016). The Political Budget Cycle and Subnational Debt Expenditures in Federations: Panel Data Evidence from India. Governance, 29(1), 47-65. https://doi.org/10.1111/gove.12130

• Journal Article Type: Article
• Online Publication Date: Dec 25, 2014
• Publication Date: Jan 1, 2016
• Deposit Date: Dec 17, 2015
• Journal: Governance
• Print ISSN: 0952-1895
• Electronic ISSN: 1468-0491
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 29
• Issue: 1
• Pages: 47-65
• DOI: https://doi.org/10.1111/gove.12130
• Additional Information: Additional Information : Published in advance online 25 December 2014