Dynamics of the relation between fiscal deficit, tax revenue and economic growth in Jharkhand

Abstract

Economic growth seems to be a prerequisite for any other progress in the economy. In the light of this fact it becomes imperative to isolate the factors which affect growth. In this direction the present paper attempts to trace the linkage between the fiscal position and the Domestic Product of a state with reference to the state of Jharkhand ever since its inception. The finances of the government are meant for both capital formation as well as current spending. It is the nature of expenditure determines the productivity of the spending which has been under taken in this study.