Assam Governance and Public Resource Management Sector Development Program

The active involvement of state government officials is a must for institutionalization of fiscal reforms. The commitment depends not only on the macroeconomic situation but also on the external and internal push for reform, preferably expressed in fiscal responsibility legislation, government's tenure in terms of the electoral cycle, and on the need to maintain social cohesion. Sufficient time and resources need to be devoted to cultivating dialogue and building consensus among all stakeholders in designing, formulating, and implementing long-term fiscal reforms.