Structural changes in the government sector of the Indian states, 1955–70

Abstract

This paper makes an analysis of the budgets of Indian state governments from 1955 to 1970. Its purpose is to discover the major changes that occurred at this time in the structure both of states’ revenues and of states’ expenditure. It attempts to relate these changes to each other and the wider economic context of India. The issues involved in deciding whether these structural changes are desirable or otherwise are set out. But as some of these issues are themselves unresolved, the conclusions are more positive than normative.

Notes

The author is Research Fellow in Economics, with reference to India, at the School of Oriental and African Studies, University of London. He is particularly grateful to Terry Byres who inspired this paper, and indeed much other recent work on the Indian States. He also wishes to acknowledge the help received from the Royal Institute of International Affairs* India Group who criticized an earlier unpublished paper, covering somewhat similar ground, presented to them on November 12th, 1970. Michael Lipton's editorial criticism overpowered a number of errors. Those still alive and well are the author's responsibility alone.