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Synopsis In spite of extensive fiscal reforms undertaken during the nineties, India’s public finance face numerous problems. While the taxation system remains distortionary and fragmented, government expenditures remain inefficient in providing public and merit goods to the desired extent. Vertical imbalance and horizontal disparities characterize the federal fiscal system. The fiscal reform years have witnessed a sharp rise in the fiscal imbalance and deterioration in state finances. This book undertakes a comprehensive review of the contemporary issues in India’s public finances within a long-term perspective tracing its evolution since 1950-51. it critically analyses the causes of fiscal imbalance, the tensions that prevail in center-state financial relations, the progress of decentralization, and issues related with the structure of taxation as well as government expenditures. It examines the impact of public finances on the macro economy and looks at fiscal policy options for growth, stability and poverty alleviation. The book is divided into six parts providing in the first part an overview followed by analysis of issues in taxation, expenditure, fiscal imbalance, government debt, fiscal federalism, and fiscal policy.