The paper considers the maintenance of law and order as another way through which the economic growth of a country is fuelled. Laws relating to property laws are a major milestone to economic growth in India. The Indian contract law governs the contractual relationships of individuals very efficiently. Not only individuals but this elaborate mechanism suffices the call of many complicated contracts also. Another aspect of law and order is foreign policies that are undertaken by the state. Import and export laws of a country are a prominent determinant to a countries economic fate.

Tax as a method of economic growth has been the backbone of discussions from decades. States have this tendency to come up with major economic reforms to bring about economic turnarounds. Taxation is a brilliant method by which the economic growth can be propelled. Also it is a field that has to be very sensitively analyzed because small policy changes in the taxes can lead to metamorphosis on the economic front of the entire country. Also taxation determines the investments by international companies into a country. Major FDI policies are affected by taxation. Also MNCs look for favorable taxation policies while establishing themselves in any country.

Finally, the paper discusses how the state has it as a normative role to promote social welfare. Unless a socially healthy ambience is created no growth whatsoever is possible. Furthermore state policies that focus on welfare indirectly promote economic well being of the people also. Sustained growth is possible only when economic growth is oiled by welfare. The role of state today as a welfare state is gaining recognition steadily.

The assumptions of this paper are well settled with the view of enhancing the understanding on these three major issues in the economic growth of any country. A generalized view is taken which makes commentary on topics of economics that is easily interpretable.

 

LAW AND ORDER AS A METHOD OF ECONOMIC GROWTH

 The eminent jurist, Locke, put it succinctly, “wherever law ends, tyranny begins”. Law and order both are very essential for maintaining countries unity and integrity. If there is collapse of rule of law and public order on a large scale, it will very disastrous for a country because gradually people will lose faith from countries. Large scale violence and disruption can threaten a country’s social fabric, endanger national unity and destroy prospects for economic growth and development[1]. But various people a have so many questions like whether collapsing of law and order can have bad consequences on countries economy? What is the role of state in maintaining law and order to promote economic growth? What are the various policies of the government to maintain law and order which are related to economic growth of the country?

At the time of independence, the economic condition of our country is considered to be very bad. It is considered to be failed economy but with the passage of time, our country tries to fight with those problems with maintaining its democratic status by a combination of grit and determination, resilience and fortitude. Now, our country is trying to achieve long term stability in terms of economy for the betterment and safety of its citizens.  For the economic boom to be sustained, the country has to move not only to a trajectory of high and sustained growth but also to high levels of social stability and public tranquility. This aim can only be achieve if we have a proper administration and law and order[2].

Today, the relation between law and development is indispensable and is achieving importance when the policies are decided for economic growth. These policies are shifting to market oriented policies. Weber, the most influential of classical social theorists in terms of the relationship between law and development says that

 A rational system of law played a crucial role in the economic development of the Protestant West by allowing individuals to order their transactions with some predictability. The first generation of law and development scholars drew on Weber’s sociology to conclude that, because rational law played an important role in the early development of capitalism, modern-day policymakers concerned with sustaining the conditions of economic growth should promote the rule of law[3].

The first law and development movement was closely associated with modernization theory (Galanter 1966). Legal rules and modes of scholarship became technologies ex- ported wholesale to developing countries in the hope that they would stimulate broader socioeconomic change, but the focus was primarily cultural rather than institutional. One of the famous economic historian Douglass North has said that countries that secure property rights and have better laws to solve contract disputes are better in economic growth than those countries which do not have those laws. “How effectively agreements are enforced,” North asserts, “is the single most important determinant of economic performance. Thus, both Weber and North talk about relation of law and development in some and other way.

East Asian Countries have pursued the various instruments to cajole private sectors to led the process of growth. Government have led their policies and promote development which are in the interest of society as a whole such as cartelizing research, channeling capital, and structuring market share in declining industries. The law is implicated mainly by its absence in this story. Anti- trust rules had to remain unenforced to facilitate cartelization. Formally transparent import rules had to be manipulated to maintain high informal barriers. Formal rights of shareholders were rarely invoked to constrain management. The so-called developmental state therefore presents its own set of issues for understanding law and economic development. This is the role of state in promoting economic growth by applying law in Asian countries according to some scientists[4].

As we know that, the state forms large number of policies to promote economic growth. In almost all of these policies rules, regulations are also there which are to maintain law and so that there is not misuse of these policies and policies are used in proper way. Almost all the policies are to maintain law and order which have a direct relation to economic growth. Like if we say about foreign laws, in India, all the activities of foreign trade are done by Indian Import laws ; under the provisions of the Foreign Trade (Development and Regulations) Act. 1992. As we know that foreign trade is very essential for a countries economic growth. It has been stated in various politicians that a country without foreign relation cannot experience a good quality of economic growth[5]. Thus in India foreign laws are there to experience high growth which is very essential for India’s development. Similarly, the import of goods in India is strictly regulated by the domestic laws, rules, regulations and domestic socio-economic demands of the land at that particular period norms are applicable for the safety of the environment and the growth of the socio-economic standards. Further, The Customs Act of India, Foreign Trade (Exemption from Application of Rules in Certain Cases) Order 1993 and Notifications under Foreign Trade (Development & Regulation) Act 1992; regulate and act as the guidelines for all applicable taxes, levies and tariffs on the import of products[6].

 Apart from these, freely imported goods are those goods which can be easily imported without having major restrictions on their import and without license. There are also restricted import items or negative items which cannot be imported under the EXIM laws of foreign trade. There is a restriction on these goods from being importing because of safety-security to the land, ecology or the society. This law was introduced by the Government of India in the year 1993 and have since then been amended as required from time to time – best in the interest of India. All such policies are for the interest of the public and also for proper growth of the country[7]. From the policies which are discussed above, all are to be governing by Indian laws. The ultimate aim of the government while forming such policies is to promote economic growth. From all such policies it can be say that government plays a major role in promoting economic growth whether that role is to maintain law and order. Government maintains law and order in order to have proper economic systems. Strict interpretation of laws is necessary while forming any policy.

Tushar Poddar, chief India economist for Goldman Sachs has said that:-

“Under the Indian government, most of the executive responsibilities are with state governments, power distribution, land acquisition, law and order, irrigation, education. The ability of the central government to drive change at the state level can be very constructive for the economy[8].”

Above lines can be interpreted as that in India state plays a major role in the economic growth of the country. Not only in India, but also in other countries state plays a crucial while forming policies which are in the welfare of the people and which led to growth of the country.

As laws are necessary for an economy as well as order is also necessary for a country’s growth, for order, regulations are imposed by state government so that there are reasonable restrictions in the economy like state has imposed regulations over freedom of privatization and monopoly which can hamper economy’s growth. Along with regulations, there are certain legal prohibitions also imposed by state for proper order in the country like German railways, for example, are entirely state-owned, and the law not only prevents competing railroads but severely restricts coach services and limits competitive trucking. The dismantling of such restrictions is seen as one method of improving the efficiency of state concerns. One major function where state maintains law and order is by allocation of resources which is very crucial for functioning and growth of the economy[9]. As state have laws for free trade but in the functioning of the economy, reasonable restrictions are also necessary. Certain rules and regulations behind implementing any policy is needed to maintain order in the market and in the economy so that economy can grow in a smoother and proper way.

Maintaining law and order is one of the essential and sovereign functions of the state. The two things which have a vital role on the economic activity which state should exercise to maintain law and order is 1. State should use force in a rightful way which will not infringe fundamental rights of citizens. 2. Everyone should have access to speedy justice. If there is poor maintaining of law and order by state then it could be disastrous for a country. From this reason, state plays a very important role in economic activity of the country. These dimensions can be further elaborated into four points:-

1. Law & Order and Internal Security: 

This pertains to the basic function of the state – its raison d’etre – to ensure that law and order prevails and citizens live in an environment  wherein their lives and property are generally safe and secure.

1. Safeguarding of basic rights: 

This aspect relates to the ability of the state to protect the basic rights of the citizen, particularly those of poor, women and weaker sections.

iii.                Police Administration and Citizen‐friendliness of the Police: 

Police force is very necessary for the state to protect citizens and punish those who committed crime in the society so that there could be proper administration and terror free society be generated.

1. Access  to  Justice  and  Judicial  Accountability:

Lastly, in a state, for proper governance, there should be justice to all and everyone has right to demand justice and justice should be deliver at proper manner and in proper time.

These are the four points which are essential for the governance of a country. If country is governed by good and justified laws then it will achieve a high level of economic growth but all these laws are made by state which is responsible for the making of laws and maintaining order for these reasons, state has vital role in promoting economic growth[10].

TAX AS A METHOD OF ECONOMIC DEVELOPMENT

Taxation as a policy measure has been very effective in bringing about economic growth. It is the only way by which huge amount of revenue can be generated. This revenue can be used to spend on goods and services that can fetch our demands. It is however important to construct a well-structured tax regime. Only an efficient tax system can aid a country to become a part of an international economy. Taxation is a very good measure to avoid government loaning from international loners. Tax systems are also a major source of public expenditure finances. One important function of the tax system is to promote equity on the economic front. Taxes have a cumulative effect on the household and the industry. They affect the decision to save or invest in human capital on both the fronts. This results in influence over the overall living standard of the people.[11]

However, there are several challenges that countries have to face when they attempt to construct a good taxation system. These problems are enumerated below –

1. INVOLVEMENT IN SMALL ENTERPRISES –

The major employment in developing countries is that the workers there are involved in small scaled mostly agro based industries. In these industries the incomes are never fixed. Therefore the income tax is never accurately sketched up. It keeps fluctuating. One major issue is that these workers involved in small scale industries do not go to large stores that keep a record of their sale; as a result of this the consumer taxes do not play a great role in these economies.[12]

2. EDUCATION –

For the creation of an efficient administrative system for the management of taxes what is needed is an educated and skilled workforce. In developing countries education is an unresolved issue and therefore the availability of skilled workers is a problem area. Also limited resources to make sufficient payments to the employees aggravate the problem. Governments thus have to resort to the establishment of a workable mechanism that is not very rational or modern.

3. GENERATION OF STATISTICS –

Reliable statistics cannot be generated unless there is a formal structure of economy which is generally absent in developing countries. Also the limits of finance make it difficult for officials to draw up accurate statistics. The uncertainty of these statistics makes it difficult for policy makers to come up with decisive changes.

4. UNEVEN DISTRIBUTION OF INCOME –

Although in ideal situation the rich should be taxed more heavily than the poor this is not the scenario in developing countries. The situation in developing countries provides an atmosphere conducive to high political influence of the rich which allows them to alter policies in their favor and evade their share of taxes. This is an excellent explanation to the fact that developing countries are not able to fully exploit their property taxes and income taxes.

Therefore it can be inferred that though tax is a very good incentive to economic growth it can only be effective if its implementation is to the optimal level.[13]

GROWTH ORIENTED TAX SYSTEM

“…a growth-oriented tax reform would shift part of the tax burden from income to consumption and residential property and would broaden the tax base…”

1. A growth-oriented tax system will try to stabilize the market while side by side it also creates limits to investment, innovation and entrepreneurship. A good taxation system would be efficient in putting more burden on consumption and property and less on income.
2. The base of the tax should be broad although the rate need not be high. The prominent tax categories are – property, personal, consumption and corporate income tax. All these taxes can be incurred by levying them on a lower rate but a broader base.[14]
3. The tax system should be such that it aids research and development. This would lead to a great amount of innovation which will directly fuel the economy.
4. Also a reduction in the tax on personal income should be the criteria if such taxes appear to diminish the human capital and entrepreneurship.
5. Taxational reforms should have a strong background of research and analysis. Only a well analyzed and practically feasible reform will enjoy consensus of the people which will further its implementation.
6. Policy makers, i.e., politicians have the tendency to bring in appropriate reforms at the time of elections. However the time when reforms are brought is also very critical to the case because changes in the business ambience might affect the revenue generation through taxation.

These are the few broad ways in which a growth oriented tax system can be formed.

The reformation of the tax system is an uphill task and policy makers have to weigh the pros and cons of a reform very cautiously because taxation is a very volatile area of public policy. The major areas that have to be kept in mind are –

1. Revenue
2. Tax avoidance and evasion
3. Tax compliance
4. Enforcement cost
5. Administrative and institutional factors

TAX AND GDP

Let now see how tax reforms can affect the different determinants of GDP-

1. LABOUR –

To raise participation of the labour force it would be preferable to reduce average labour taxes, on the other hand to increase the work hours marginal rates can be lowered. But reduction in the latter might lead to great income inequalities among the workers. However the overall impact should be estimated keeping in mind the wage system, minimum wages, etc. it is also possible that excessively progressive tax measures might lead to both lower labour utilization and lower productivity.[15]

2. INVESTMENT –

There are two main principles on which the entire physics of tax incentives is based. These are –

1. Additional investment is needed for speedy economic growth.
2. Investment can be encouraged with the help of tax break.

ADVANTAGES OF TAX INCENTIVES[16]–

1. Investments can be assured a return through tax incentives.
2. They are more structured and fine tuned.
3. They are viewed as an encouragement to private investment.
4. Tax competitions from other entities can be combated through tax incentives.
5. Other defects in the market can be overcome by their help.
6. The linkage effect accounts for other taxable income that can be generated through the revenue increment by the way of tax incentives.
7. Malaysia, Ireland and Mauritius are success stories of successful tax incentive programs.
8. PRODUCTIVITY – There are many ways in which taxation can affect productivity –
9. By reducing marginal statutory rate on personal income –

This will increase innovation and improve the quality of human capital by encouraging entrepreneurship. Therefore this may lead to increase in productivity and also increase the entire level of economic well being of the country by corroborating with industries with high potential of enterprise creation.

1. By reforming corporate taxes –

Dynamic and modern firms will boast their production if given a tax incentive in the form of decrease in the corporate taxes. This will lead to high increase in the GDP. In profitable and established firms it is noted that high corporate taxes will inevitably decrease productivity. However this may not be the case with less profitable firms.

1. Stimulating private sector innovation –

This can be done by giving tax incentives to Research and Development sector. R&D intensive industries flourish more profusely when given tax incentives. Their growth and productivity increases more than any other industry. Also it is found that R&D is more sensitive to tax incentives than direct investment and bloom more when the former is given.

1. Lower corporate and labour taxes are also instrumental in endorsing FDI, which inevitably increases productivity of domestic firms. Moreover MNCs are also attracted towards countries that have a stable and transparent taxation system.
2. TAX AND GROWTH: A THEORETICAL PERSPECTIVE

Let us consider the equation

yi = aiki + bimi + u_i[17]

here,

y = output

k= technological productivity of capital stock

m= size and skills of its workforce

u_{i =} economy’s overall productivity growth

Coefficients;

a = marginal productivity of capital

b = output elasticity of labour Second, taxes may attenuate

The above equation helps us to draw out five ways in which tax affect GDP –

1. High taxes can diminish the technological productivity of capital stock (k).
2. High taxes can also discourage labor force participation and decrease the hours of work.
3. Taxes would discourage productivity growth (_I ) by assuaging R&D.
4. Taxes will discourage investments from highly taxed sectors with lower productivity.
5. Heavy taxes on labor supply can disturb the flow of labor.

[18]

 

WELFARE AND ECONOMIC GROWTH

There is a growing tendency on the part of the modern states to claim themselves to be ‘welfare states’. Writers and thinkers differ in their opinions regarding the definition and functions of the welfare state. Still, a welfare state is commonly understood as an agency of social service than as an instrument of power.

1. D.L. Hob man in his The Welfare State defines welfare state as “a compromise between the two extremes of communism on the one hand and unbridled individualism on the other”.
2. Herbert H. Lehman opines that “the welfare state is simply a state in which people are free to develop their individual capacities, to receive just awards for their talents, and to engage in the pursuit of happiness, unburdened by fear of actual hunger, actual homelessness or oppression by reason of race, creed or colour.”

A welfare state is a concept of government where the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions for a good life. The general term may cover a variety of forms of economic and social organization^[19].

There are two main interpretations of the idea of a welfare state:

A model in which the state assumes primary responsibility for the welfare of its citizens. This responsibility in theory ought to be comprehensive, because all aspects of welfare are considered and universally applied to citizens as a “right”.

Welfare state can also mean the creation of a “social safety net” of minimum standards of varying forms of welfare[20].

The genesis and development of the concept of the welfare state lay in the interaction of ideas, mainly, conservatism, liberalism and socialism, in the unique British historical setting of a qualitative change from administrative to ameliorative legislation. The welfare state, conceived within the liberal framework, involved a social consensus on a wide spectrum of socio economic policies. Two sociological factors largely contributed to the growth of the concept: first, increasing prosperity that produced a revolution of rising expectations; and second, the hope and the fear generated by the newly acquired manhood franchise. The faith in piecemeal social engineering, bereft of dogma, set the precedent forexpanding municipal activity and government’s interest in social reform. This, indeed, was an ominous beginning^[21].

When India attained independence, it had innumerable problems and challenges. The social and economic inequality was all pervasive. Economically, India’s situation was miserable. Socially also India was having a number of problems. There were social inequalities and all the vulnerable sections of the society such as women, dalits, and children were deprived of basic means of living. The Constitution makers were very much aware of the problems. That is why; they decided that India would be a welfare state. As you must have seen, India is described as a “sovereign socialist secular democratic republic” in the Preamble of the Indian Constitution. Accordingly, the Constitution has extensive provisions to ensure social and economic welfare of the people of India. In this regard two specific provisions have been made, one in the form of Fundamental Rights and the other as Directive Principles of State Policy.

Health Sector

Public health has been high-powered in India, and has undergone countless barriers in its attempt to change the lives of the people of this country for better. Major public health problems like malaria, tuberculosis, leprosy, high maternal and child mortality and HIV AIDS have been addressed by conjunctive actions of the government. Social development coupled with scientific advances and health care has led to a decrease in the mortality rates and birth rates[22].

Health systems are scuffling with the accouterments of existing communicable and non-communicable diseases and with the rising burden of emerging and re-emerging diseases (drug-resistant TB, malaria, SARS, avian flu and the current H1N1 pandemic).Incongruous financial resources for the health sector and inept utilization result in inequalities in health.

Health inequalities arise due to the social, economic and political mechanisms that promote the social division or stratification based on income, education, occupation, gender and race or ethnicity[23].Lack of ample progress on the above mentioned underlying social determinants of health have been identified and acknowledged as anobtrusive failure in public health.

To beat the formidable problems mentioned earlier, the need of the hour is revitalizing primary health care based on the principles outlined at Alma-Ata in 1978: Universal access and coverage, equity, community participation in defining and implementing health agendas and intersectoral approaches to health. These principles remain valid, but must be reinterpreted in light of the dramatic changes in the health field during the past 30 years. Attempts to achieve “Health forall” have been carried forward in the form of “Millenium Development Goals[24].”

Public health is primarily concerned with prevention of diseases and control at the population level, with organized efforts and informed choices in society, organizations, public and private communities and individuals. The Ministry of Health and Family Welfare (MOHFW) plays a vital role in forming India’s public health system.

“Contribution to health of a population derives from systems outside the formal health care system, and this potential of intersectoral contributions to the health of communities is increasingly recognized worldwide. Thus, the role of government in influencing population health is not limited within the health sector but also by various sectors outside the health systems”[25].

ROLE OF GOVERNMENT WITHIN THE HEALTH SECTOR

The National Rural Health Mission (NRHM) launched by the Indian government is a dive forward in building effective integration and convergence of health services and affecting structural corrections in the Indian health care delivery system.

The Integrated Disease Surveillance Project was set up to lay down a dedicated path of information related to occurrence of a disease, its prevention and containment at community level. But the slow pace of integration directly means poor health system. Health profiles printed by the government should be employed to help communities prioritize their health issues and to inform local bodies.

In an attempt to improve the health system, the government also needs to improve other sectors like nutrition, sanitation, housing etc as they are directly or indirectly related.

Employment

Providing employment is the most crucial function as well as the most debated and discussed problem of the state. The state plays a major role in employing people and in formulation policies responsible for the same. Appropriate policies have to be incorporated to felicitate the employment rate. And if the state is not able to provide employment than it leads to many crimes as people who are unable to sustain themselves legally will try to do that illegally like theft, robbery and also child labor which one of the most increasing social evil in our country and if the state is not successful providing jobs than it has to take some  stringent measures to control the problems resulting out of another problem that is unemployment.

ROLE OF GOVERNMENT WITHIN EMPLOYMENT

The government has introduced schemes which provide guaranteed 100 days of work to people below poverty line and if not work, then equivalent wages.[26]

It has also introduced various other schemes like Swarnajayanti Gram SwarojgarYojana, Prime Minister’s Employment Generation Programme, SamagraAwasYojana, Pradhan MantriGramodayaYojana, Rural housing scheme, etc for improving the employment ratio.

The State and Education

The state plays an essential and crucial role in promoting the cause of education and formulating policies to increase the same which have always been in the favored topic of debate amongst intellectuals, education and state is mutually related. There is no doubt in the fact that the state plays a fundamental and basic role in providing primary education[27], which is easily accessible[i] and provided equally. Education is considered to be the solid foundation for a society that is knowledgeable and sound by the neo-liberal democratic system. The constitutional or the basic objective of laying down an egalitarian society accentuates free and compulsory education for everybody up to a specific age limit at least.

A state plays a definitive, constructive and well defined role in providing not only education but also in founding a qualitative system of education. It shouldn’t limit its activities to providing economic benefits of funds for promotion of education but it should take upon itself the responsibility of organizing the education system to meet with the demands of changing moods of the society and nature and work according to the needs in the current scenario.

A state is the basic institution and is Omni present throughout the length and the breadth of the territory and so it can take upon the task with universally with the boundaries. Regulatory framework of government institutions should be revised it a way to accommodate both autonomy and accountability together which would thereby result in fulfilling the educational as well as the social obligations.

Education thus forms the basic structure of the most important of all resources, the humans and it is thereby not just an essential function but also the DUTY of a state to promote, encourage and advocate it.

CONCLUSION

In an ideal world, two roles of state would emerge, first is what the state should do and second is what the state actually does. State should do what it is expected to do from it and should reform all its policies which promote welfare and should maintain taxation, law and order so that it can enhance its economic growth. The normative role of the state defines what the government should do to correct market imperfections and to complement the market in other ways to promote and maximize social welfare. Further behind every role, the important role is of policy makers who make decisions and are responsible for promoting role of the state.

The 20^th century saw a gradual but large expansion in the role of the state in the economy. Such expansion is particularly evident from data on the growth of public spending as a share of GDP. For the new industrialized countries, that share grew, on average, from about 12% in 1913 to about to about 45% in 1995. Both political and ideological factors contributed to this growth[28].

Although government plays many role in promoting economic growth but in this research paper we have discussed three major roles of government that is to maintain law and order, to maintain taxation and to promote welfare. If we see all these three major roles of Government than we can state that firstly the major role of Government is to maintain law and order and Government do this by forming proper laws and providing regulations to follow these laws. Taxation is also done by Government by proper rules and by right laws. Apart from this, the Government aims to promote welfare of people. Laws and taxation on policies all are framed in such a way that people do not find difficult to obey such laws and policies and all such are for the welfare of the society as a whole. Unless or until there is no welfare of people by Government laws and policies, no country can flourish and experience economic growth. Hence, both proper law and order and proper taxation is requires for a country to experience effective growth.

[1] Government of India, Second Administrative Reform Commission, Fifth Report, Public Order/ arc.gov.in/5th%20REPORT.pdf

[2] Government of India, Second Administrative Reform Commission, Fifth Report, Public Order/ arc.gov.in/5th%20REPORT.pdf

[3] Tom Ginsburg/ Does Law Matter for Economic Development? /http://www.jstor.org/stable/3115145

[4] Tom Ginsburg/ Does Law Matter for Economic Development? /http://www.jstor.org/stable/3115145

[5] :  The Impact Of Global Trade On Economic Growth Economics Essayhttp://www.ukessays.com/essays/economics/the-impact-of-global-trade-on-economic-growth-economics-essay.php#ixzz3mNlMWtog

[6] : The Impact Of Global Trade On Economic Growth Economics Essayhttp://www.ukessays.com/essays/economics/the-impact-of-global-trade-on-economic-growth-economics-essay.php#ixzz3mNlMWtog

[7]Neha Thirani Bagri/ Analysts Have High Hopes for Big Economic Changes Under Modi/ http://india.blogs.nytimes.com/2014/05/19/analysts-have-high-hopes-for-big-economic-changes-under-modi/?_r=0

[8]Neha Thirani Bagri/ Analysts Have High Hopes for Big Economic Changes Under Modi/ http://india.blogs.nytimes.com/2014/05/19/analysts-have-high-hopes-for-big-economic-changes-under-modi/?_r=0

[9]: Assar Lindbeck/ Government economic policy/ http://www.britannica.com/topic/government-economic-policy

[10] State of Governance A framework forassessment/darpg.gov.in/darpgwebsite_cms/Document/file/sogr_framework.pdf

[11]  Åsa Johansson, Christopher Heady, Jens Arnold, Bert Brys and Laura Vartia Tax and Economic growth, Summary and main findings, MENA-OECD investment program,

 www.oecd.org/eco/working_papers.

[12] Vito Tanzi, Howell Ze Tax Policy for Developing Countries, Economic Issues No. 27, International Monetary Fund, www.imf.org/external/pubs/ft/issues/issues27

[13] Vito Tanzi, Howell Ze Tax Policy for Developing Countries, Economic Issues No. 27, International Monetary Fund, www.imf.org/external/pubs/ft/issues/issues27

[14] Tax Policy Reform and Economic Growth, OECD Tax Policy Studies No. 20, http://dx.doi.org/10.1787/9789264091085-en

[15] Michael Wasylenk, Taxation and Economic Development:The State of the Economic Literature, New England Economic Review, March/April 1997, ideas.repec.org/a/fip/fedbne/y1997imarp37-52.html

[16] Nathan−MSI Group, Effectiveness and Economic Impact of Tax Incentives in the SADC Region, USAID/RCSA SADC Tax Subcommittee, SADC Trade, Industry, Finance and Investment Directorate, http://r.search.yahoo.com/_ylt=A86.J3VMJgRWp0IAsLknnIlQ;_ylu=X3oDMTByb2lvbXVuBGNvbG8DZ3ExBHBvcwMxBHZ0aWQDBHNlYwNzcg/RV=2/RE=1443141324/RO=10/RU=http%3a%2f%2fwww.nathaninc.com%2fsites%2fdefault%2ffiles%2fEffectiveness_and_Economic_Impact_of_Tax_Incentives_in_the_SADC_Region_0.pdf/RK=0/RS=MB7zCOUNzWQ.5qTEHtaBOpQ5KOo-

[17] ERIC ENGEN & JONATHAN SKINNER, TAXATION AND ECONOMIC GROWTH, National Tax Journal Vol 49 no. 4 (December 1996) pp. 617-42, ideas.repec.org/p/nbr/nberwo/5826.html

[18] ERIC ENGEN & JONATHAN SKINNER, TAXATION AND ECONOMIC GROWTH, National Tax Journal Vol 49 no. 4 (December 1996) pp. 617-42, ideas.repec.org/p/nbr/nberwo/5826.html

[19]Available at http://en.wikipedia.org/wiki/Welfare_state visited on September 10, 2010.

[20]Available at http://en.wikipedia.org/wiki/Welfare_state visited on September 10, 2010.

[21]M.M. Sankhdher/ the Welfare State/ (Delhi: Deep and Deep Publications) p 17.

[22]Government of India.National Health Policy. Ministry of Health and Family Welfare/ Government of India, New Delhi: 2002.

[23] Geneva: World Health Organization; 2008. Report of the Commission on Social Determinants of Health.

[24]Regional Conference proceedings at Djakarta, Indonesia. Revitalizing Primary Health Care. 2008.

[25]Park/ Textbook of Preventive and Social Medicine. Jabalpur: BanarsidasBhanot Publishers; 2007.

[26] MANREGA, 2005

[27]Yashpal Committee report

[28] Tenzi Veto/ The Changing Role of the State in the Economy: A Historical perspective/ .

 http://www.imf.org/external/pubs/ft/wp/wp97114.pdf

Author: Renuka Jain & Sakshi Singh, students, INSTITUTE OF LAW, Nirma University.

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