Title: Fiscal implications of special economic zones in India: a study of Noida SEZ

Authors: Narendra Kumar Bishnoi; Babita

Addresses: Haryana School of Business, GJUST, Hisar, India ' School of Business and Management, CHRIST (Deemed to be University), Delhi NCR, India

Abstract: This paper analyses the fiscal implications of Noida Special Economic Zones (NSEZ) on government budget. The analysis is based on the aggregated data collected form NSEZ and taking 2009-2010 to 2015-2016 as reference period. The study reveals that government incurred a lot of expenditure and costs for successful running of the zone and option to earn revenue is foregone because payment of various taxes and duties is not applicable to SEZs. This, in turn has affected both revenue and expenditure of the government budget and it raises the questions about actual contributions of such enclaves to national fiscal health and supports the arguments of opponents regarding discontinuation of scheme. It is suggested that government should lessen these effects either by withdrawing fiscal incentives fully or partially or through exploring some constructive ways.

Keywords: budget; fiscal; special economic zones; net present value; NPV; benefit cost ratio; BCR; India.

DOI: 10.1504/IJEME.2021.120080

International Journal of Engineering Management and Economics, 2021 Vol.6 No.4, pp.259 - 271

Received: 07 Apr 2018
Accepted: 14 May 2019
Published online: 07 Jan 2022 *