fbpx

Publication

IDS Bulletin Vol. 27 Nos. 2

State Failure in India: Political?Fiscal Implications of the Black Economy

Published on 1 April 1996

Summary The underground or ‘black economy’ has been a source of considerable concern to Indian public policy analysts since the mid 1960s. In this article we argue that the black economy played a critical role in the softening of the government budget constraint in the 1980s. It, inter alia , reflects a decline in the fiscal surplus accessible to the state. The origins and disposition of black income are traceable, it is argued, to petty bourgeois groups rather than to direct ‘corruption’ of the type identified in the rent?seeking literature.

Cite this publication

Roy, R. (1996) State Failure in India: Political?Fiscal Implications of the Black Economy. IDS Bulletin 27(2): 22-30

Citation copied

Publication details

published by
Institute of Development Studies
authors
Roy, Rathin

Share

Related content