Our studies on State finances in Reserve Bank of India give grounds for optimism in regard to their fiscal health. From 2003-04, there has been a sharp correction both in the revenue and fiscal deficits; and the process of correction is primarily due to buoyancy in revenue receipts, States’ own tax revenue as well as transfer and devolution of resources from Centre.
Experience has shown that the SROs enable market participants to mobilize themselves to exercise self discipline, help the transformation of government functions, make the regulation more responsive to market demand, and promote market innovation and development in a market-based approach. In recent years, a lot of achievements have been made in China’s financial market development. However, the financial sector has its problems.