Vol. 3, Issue 7, Part L (2017)

Abstract
This paper is an effort to study the fiscal situation in Karnataka before the implementation of Karnataka Fiscal Responsibility Act, 2002 of and how the implementation of this act has affected the fiscal parameters of the state. Karnataka is one of the progressive states which have initiated many reforms for the fiscal progress of the state. The main reform initiated is the Karnataka Fiscal Responsibility Act (KFRA), which was a major and very important reform initiative. After the implementation of the KFRA, Karnataka has been able to adhere to the fiscal and revenue deficit targets and has improved the performance for development and capital expenditure. This paper examines the impact of fiscal reforms on selective fiscal indicators of Karnataka and the results show that the fiscal situation of Karnataka has improved after the implementation of Karnataka Fiscal Responsibility Act.