Indian Economy and Development - Assignment 3

Find the fiscal accounts of your country (summary tables will suffice). The ministry of finance generally reports them. 

• What is the coverage of these accounts in your country: does the definition of the Public Sector include Public Corporations, or only General Government?
• On which basis are these recorded? Cash or accrual?

Save these accounts and keep them for the next activity.

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Look again at the fiscal accounts of your country, which you used in the first activity of this module. Also, look at the fiscal accounts presented in the Government Finance Statistics Yearbook 2012, which you may also find in the Key Info of this module, or in Handouts and Resources. 

Compare the fiscal accounts in these two presentations.

·         What are the major differences?

·         Are revenue and expense the same? How about the net acquisition of nonfinancial asset?

·        In case the two presentations are different, are you able to map items in one presentations into items in the other presentation?

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Look at the fiscal accounts that you found about your country, including those presented in the Government Finance Statistics Yearbook 2012. 

·         Compute the major balances (Net Operating Balance, Net Lending/Borrowing, Overall Balance, and Primary Balance) in percent of GDP. How have these evolved over time in the past 6 years? What explains these developments?

•   How do the balances that you found above compare to those of comparable (peer) countries?
•   Has fiscal policy changed in 2008-2009 in response to the global financial crisis? In case it did change, has it gone back to pre-crisis levels? For this question you may also want to use the IMF World Economic Outlook Database, which present a series on the structural balance, a concept that is very similar in construction to the cyclically adjusted balance.

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Look at the fiscal accounts that you found about your country, including those presented in the Government Finance Statistics Yearbook 2012. 

·         Compute the major stock indicators in percent of GDP (debt, assets, liabilities, net worth, net financial worth). How have these evolved over time in the past 6 years? What explains these developments?

•   How do these indicators compare to those of comparable (peer) countries?
•   In case fiscal policy changed in 2008-2009 in response to the global financial crisis, what was the impact on the stock aggregates? Are these raising concern in your country?

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