Pradeep Chauhan

When India's economy faced an unprecedented macroeconomic crisis in 1991, fiscal consolidation constituted a major objective of the policy response. For this purpose, it became necessary to enhance tax and non-tax revenue, curtail current expenditure growth, restructure public sector undertakings, improve fiscal-monetary co-ordination, and deregulate financial system. The need for improvements in budgetary practices led to the enactment of the Fiscal Responsibility and Budget Management Act, 2003, which ushered the Indian economy into an era of fiscal consolidation based on fiscal policy rules. The passage of the Constitution (Seventy-Third Amendment) Act, 1992 marked a watershed in the history of modern India. With this amendment, a uniform structure of panchayats (village councils) emerged throughout the country. Similarly, the passage of the Constitution (Seventy-Fourth Amendment) Act, 1992 was a landmark in the history of municipal administration in India. As a result, panchayats and municipalities are now constitutional bodies which form the third tier of the federal polity of India. This decentralization initiative poses challenges and offers opportunities. This book provides an account of the fiscal developments in India during the post-liberalization period, with particular emphasis on decentralization initiatives. It also examines prospects and challenges facing the Indian economy. An appendix included in the book contains the Fiscal Policy Strategy Statement presented to Parliament by Shri Pranab Mukherjee, Minister of Finance, on February 26, 2010.

Reflecting the diversity of economies and their histories, regional integration follows markedly different patterns across the world. In Asia, trade integration has progressed at a rapid pace, based on the exploitation of intra-regional comparative advantages. This book analyzes the nature of Asia's merging regionalism, which can have a significant impact in an increasingly globalized world. Regionalism can be a stabilizing factor when economic shocks arise, whether regional-based or externally-imposed. The book examines these global economic and monetary integration processes. What is the status of Asian integration in monetary, financial, trade, and production networks? These aspects are discussed and compared with successful European economic and monetary integration. To give a more extensive view to the readers, separate chapters have been included on the North American Free Trade Agreement, Latin America's Mercado Commum de Sur, and the African Economic and Monetary Integration. The book will benefit students, researchers, policy makers, and all others who want to understand and assess the status, processes, and challenges of economic and monetary integration.