Analysis Of Fiscal Health Of Congress-Governed States

Abstract

The research examines the economic challenges and structures of Congress-ruled states, focusing on Himachal Pradesh, Karnataka, Jharkhand, and Telangana. By focusing on the governing strategies and decisions, the paper explores the difference between Congress in the Central government and Congress in the State government and how the fallacies in the economic policies have affected the State.  Through a comparative analysis of key financial metrics such as GDP growth and welfare distribution, the paper highlights both the short-term successes and long-term issues that arise from the governance models employed. The research also emphasises the socio-political dynamics, including regional pressures, which drive the distinct policy-making approaches between the Congress-led central government and state governments. Lastly, the paper explores a top-down model of redevelopment to reverse the effects of the fallacious policies implemented during the Congress-term period, to even out economic growth and provide stabilisation between welfare schemes and revenue generation. 

1. Introduction

1.1. Overview of Economic Trends in India  

India has seen significant growth in its economy, rising exponentially in the past decade. Surpassing some of the major European powers, India has secured its place in the Global economy. However, the major problem is the unequal distribution and factorial inconsistency in the distribution of the growth among the states. The difference in industrial, agricultural and overall economic growth is notable and often concerning. 

After the pandemic, India’s economy slowed down, but this was followed by explosive post-pandemic growth. In a deep and slow stabilisation period in 2022, many welfare schemes were initiated by the central government to maintain uniform economic outcomes throughout the country. 

Despite the efforts for uniformity of economic growth and stability, the impact on states has been unequal due to different governments, fiscal policies, sectoral politics and economic needs and sources.  

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