Fiscal Responsibility Index

The Fiscal Responsibility Index (FRI) project is a comprehensive analysis aimed at quantifying the fiscal responsibility of a government by creating an index that evaluates how well a government manages its monetary resources. Developed as part of a B.Tech Economics project, the FRI considers various parameters such as fiscal deficit, revenue deficit, primary deficit, and their impact on the overall economy. The project involves extensive data collection from sources like the RBI and World Bank, and uses MATLAB for modeling these parameters to derive a mathematical formula that represents fiscal responsibility. The index helps in assessing the government’s efficiency in balancing developmental expenditures with debt management, ensuring sustainable growth. By analyzing historical data and incorporating factors like GDP growth rate and total outstanding liabilities, the FRI provides a nuanced report card of a government’s fiscal discipline, offering valuable insights for policy-making and economic planning.

A brief report of the project can be found here.