The Union Finance Minister on 20 September 2019 announced the highest corporate tax rate cuts in the last 28 years as a level-playing field for both the existing and green-field firms for turning around the sluggish economy. The stimulus package, notwithstanding, has likely to accelerate the demand in the short run, but to increase the fiscal deficit inasmuch, the government would increase its spending through borrowings, which could lead to fiscal slippage. Instead of excessive dependence on the fiscal measures, the government should initiate economic and judicial reforms for accelerating the growth and improving doing business in the country.
AbbasS. M. A.KlemmA. (2013). A partial race to the bottom: Corporate tax developments in emerging and developing economies. International Tax Public Finance, 20, 596–617.
AcemogluD.RobinsonJ. (2012). Why nations fail: The origins of power, prosperity, and poverty. Crown Business.
4.
AcharyaS. (2002). Macro-economic management in the nineties. Economic and Political Weekly, 37(16), 1515–1538.
5.
AcharyaS. (2019, October 10). Corporate tax cuts and growth. The Business Standard, p. 9.
6.
AdamC. S.BevanD. L. (2005). Fiscal deficits and growth in developing countries. Journal of Public Economics, 89(4), 571–597.
7.
AfonsoA. (2005). Fiscal sustainability: The unpleasant European case. Finanz Archiv, 61(1), 19–44.
8.
Anantha RamuM. R. (2017). Twin deficits hypothesis: An assessment of relationship and transmission mechanism in India. Foreign Trade Review, 52(1), 15–29.
9.
AndrewsD. (1994). Capital mobility and state autonomy: Toward a structural theory of international relations. International Studies Quarterly, 38, 193–218.
10.
AuerbachA. J.GorodnichenkoY. (2011). Fiscal multipliers in recession and expansion[working paper no. 17447]. National Bureau of Economic Research.
11.
BagchiA.NayakP. (1994). A survey of public finance and the planning process: The Indian experience. In BagchiA.SternN. (Eds.), Tax policy and planning in developing countries. Oxford University Press.
12.
BalassoneF.FranceseM.PaceA. (2011). Public debt and economic growth in Italy [Paper presentation]. Conference Italy and the World Economy, 1861–2011, Rome, Banca d’Italia 12–15 October.
13.
BhattA. (2011). Revisiting indicators of public debt sustainability: Capital expenditure, growth and public debt in India[working paper no. 28289]. MPRA, University Library of Munich, Germany.
14.
BhattacharyaA. K. (2019, September 24). Underestimates and overreactions. The Business Standard, p. 8.
15.
BhoiB. K. (2019, October 14). Has India’s growth slowdown bottomed out? The Business Line, p. 12.
16.
BoseS.BhanumurthyN. R. (2015). Fiscal Multipliers for India. Margin—The Journal of Applied Economic Research, 9(4), 379–401.
17.
BradyG. L.MagazzinoC. (2019). The sustainability of Italian fiscal policy: Myth or reality. Economic Research Ekonomska Istraživanja, 32(1), 772–796.
18.
BuiterW.PatelU. (2006). Excessive budget deficits: A government-abused financial system and fiscal rules. India Policy Forum, NCAER and Brookings Institution, 1–54.
19.
ChakrabortyL. (2002). Fiscal deficit and rate of interest link in India: An econometric analysis of deregulated financial regime. Economic and Political Weekly, 37(19), 1831–1837.
20.
ChakrabortyP.ChakrabortyL. (2006). Is fiscal policy contracyclical in India: An empirical analysis[working paper]. MPRA, University Library of Munich, Germany.
21.
ChandrasekharC. P.GhoshJ. (2014, December 23). What fiscal deficit is all about? The Business Line, p. 9.
22.
ChelliahR. J. (1996). Towards sustainable growth: Essays in fiscal and financial sector reforms in India. Oxford University Press.
23.
ChenY.HuangW. H.RegisP. J. (2014). Do Asia and Pacific countries compete in corporate tax rates? Journal of the Asia Pacific Economy, 19(1), 25–51.
24.
Controller General of Accounts. (2020, June). www.cga.nic.in
25.
FiebigerB.LavoieM. (2017). The IMF and the new fiscalism: Was there a U-turn. European Journal of Economics and Economic Policies: Intervention, 14(3), 314–332.
26.
GhoshS. (2020, June 15). Bets, blames and blemishes. The Economic Times, p. 10.
27.
Gómez-PuigM.Sosvilla-RiveroS. (2015). The causal relationship between debt and growth in EMU countries. Journal of Policy Modeling, 37(6), 974–989.
28.
GuimarãesR. (2010). What are the effects of fiscal policy shocks in India. Retrieved 19 October 2019 from http://macrofinance.nipfp.org.in/PDF/06_6Pr_Guimaraes_Fiscal%20Multipliers%20in%20India_2010_Conference.pdf
29.
IlzetzkiE.MendozaE. G.VéghC. A. (2011, March). How big (small?) are fiscal multipliers? [working paper no. 1152]. International Monetary Fund.
30.
JhaR.SharmaA. (2004). Structural breaks, unit roots, and cointegration: A further test of the sustainability of the Indian fiscal deficit. Public Finance Review, 32(2), 196–219.
31.
KahnR. F. (1931). The relation of home investment to unemployment. The Economic Journal, 41(162), 173–198.
32.
KhundrakpamJ. K.PattanaikS. (2010). Fiscal stimulus and potential inflationary risks: An empirical assessment of fiscal deficit and inflation relationship in India. Journal of Economic Integration, 25(4), 703–721.
33.
KrugmanP. (2018). Good enough for government work? Macroeconomics since the crisis. Oxford Review of Economic Policy, 34(1–2), 156–168.
34.
KumarM. S.WooJ. (2010). Public debt and growth[working paper no. 10/174]. International Monetary Fund.
35.
KurzerP. (1993). Business and banking: Political change and economic integration in Western Europe. Ithaca, NY: Cornell University Press.
36.
LinH. Y.ChuH. P. (2013). Are fiscal deficits inflationary? Journal of International Money and Finance, 32, 214–233.
37.
LittleI. M. D.JoshiV. (1994). India: Macroeconomics and political economy1964–1991. Oxford University Press.
38.
MadhavanN. (2019, September 27). How to make the corporate tax cuts work. The Business Line, p. 6.
39.
MathurB. P. (2014). India’s financial crisis and mounting public debt-need to restore fiscal balance. Indian Journal of Public Administration, LX(4), 755–775.
40.
McCallumB. J. (1977). Price-level stickiness and the feasibility of monetary stabilization policy with rational expectations. Journal of Political Economy, 85, 627–634.
41.
McCallumB. J.WhitakerJ. K. (1979). The effectiveness of fiscal feedback rules and automatic stabilizers under rational expectations. Journal of Monetary Economics, 5, 171–186.
42.
MookimS.GuptaN.GuptaS. (2019, September 24). Corp tax cuts will drive private capex. The Financial Express, p. 8.
43.
NayarA. (2020, July 21). The slipped fisc. The Indian Express, p. 9.
44.
NguyenV. B. (2015). Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia. Journal of Economics, Finance and Administrative Science, 20, 49–53.
45.
OoT. L. (2019). The effect of fiscal policy on economic growth in Myanmar. East Asian Community Review, 2(1–2), 101–124.
46.
PanizzaH.PresbiteroA. F. (2014). Public debt and economic growth: Is there a causal effect? Journal of Macroeconomics, 41, 21–41.
47.
ParikhA.RaoB. (2006). Do fiscal deficits influence current accounts? A study of India. Review of Development Economics, 10(3), 492–505.
48.
RaniR.KumarN. (2017). Does fiscal deficit affect interest rate in India? An empirical investigation. Jindal Journal of Business Research, 5(2), 87–103.
49.
RaoM. G. (2018). Public finance in India: Some reflections. Decision, 45(2), 113–127.
50.
RaoM. G. (2002). State finances in India: Issues and challenges. Economic and Political Weekly, 37(31), 3261–3271.
51.
Reserve Bank of India. (2012). Fiscal and monetary coordination. Report on Currency and finance 2009–2012, RBI, Mumbai.
52.
RoyR. (2019, October 11). Fiscal policy and the growth slowdown. The Business Standard, p. 9.
53.
SawhneyU. (2018). An analysis of fiscal policy in an emerging economy: Innovative and sustainable fiscal rules in India. Millennial Asia, 9(3), 295–317.
54.
SchaechterA.KindaT.BudinaN.WeberA. (2012). Fiscal rules in response to the crisis-toward the ‘next-generation’ rules. A new dataset[working paper no. 12/187]. International Monetary Fund.
55.
SenguptaD. P.RaoK. (2012). Direct taxes code and taxation of agricultural income a missed opportunity. Economic and Political Weekly, XLVII(15), 51–60.
56.
SharmaV.MittalA. (2019). Fiscal deficit, capital formation, and economic growth in India: A nonlinear ARDL model. Decision, 46(4), 353–363.
57.
ShenW.YangS. C. S.ZannaL. F. (2018). Government spending effects in low-income countries. Journal of Development Economics, 133, 201–219.
58.
SinghA. K. (2004). Fiscal reforms in India since 1991: A critical assessment. Indian Journal of Public Administration, L(3), 733–745.
59.
SinghN. (2019, October 11). Rescuing India’s economy. The Financial Express, p. 8.
60.
SinhaS. (2019, September 21). Fiscal deficit likely to widen by 30–40 basis points. The Business Line, p. 1.
61.
SlemrodJ. (2004). Are corporate tax rates, or countries, converging? Journal of Public Economics, 88, 1169–1186.
62.
SrivastavaS. K.SharmaP.BhatnagarV. K. (2010). Impact of changing scenario of taxation in India on tax revenue and GDP. Journal of Accounting and Finance, 24(2), 104–112.
63.
ThomasE.ChakrabortyL. (2019, September 24). Paying attention to tax buoyancy. The Financial Express, p. 9.
64.
VanV. B.SudhipongprachaT. (2015). Exploring government budget deficit and economic growth: evidence from Vietnam’s economic miracle. Asian Affairs: An American Review, 42(3), 127–148.
65.
ZareenS.QayyumA. (2015). An analysis of the impact of government size on economic growth of Pakistan: An endogenous growth. Research Journal of Social Science, 4(1), 61–80.
66.
ZotoO.BerishaM. (2016). Budget deficit and economic growth in Albania. International Journal of Engineering Sciences and Research Technology, 5(9), 333–340.
