ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Mihir RakshitSubscribe to Mihir Rakshit

Puzzles in Budgetary Policies

Mihir Rakshit This paper identifies the more glaring puzzles and contradictions in the policy instruments embodied in the budget, seeks to locate their sources in terms of macro-economic models and examines the efficacy of alternative policies. The analysis leads to the conclusion that there is substantial scope for public investment without adding to inflationary pressures. Such investment would in fact raise the overall saving ratio of the economy and reduce the investment- saving gap in the public sector. Also missing in the budgetary measures is a rational system of tariffs, taxes and subsidies based on considerations of both comparative advantage in production and comparative benefits from domestic absorption of goods and services.

Issues in Financial Liberalisation

Issues in Financial Liberalisation Mihir Rakshit The basic questions relating to financial liberalisation may be grouped under two broad categories. First and the most important for developing countries, to what extent has private initiative to be supplemented by state intervention for creating an efficient financial structure? Second, given the structures of the financial system, is there any scope for public authorities to influence or suspend the operation of market forces in order to promote saving, investment, and allocative efficiency in the system?

Money and Public Finance under Structural Adjustment-The Indian Experience

The Economic Survey 1993-94 and the Budget papers for 1994-95 display inadequate appreciation of the macro- economic mechanism giving rise to a series of paradoxes which have characterised the Indian economy since the initiation of the Structural Adjustment Programme in July 1991, and during 1993-94 especially.

Balanced and Pragmatic

Balanced and Pragmatic Mihir Rakshit India's Economic Crisis: The Way Ahead by Bimal Jalan; Oxford University Press, Delhi, 1991; pp ix + 251, Rs 250.

The Macroeconomic Adjustment Programme

The Macroeconomic Adjustment Programme A Critique Mihir Rakshit The government has chalked out a programme for macroeconomic adjustment over the short and the medium run in order to resolve the fiscal crisis and tackle the problems of inflation and the balance of payments. Our primary focus in this paper will be on the macroeconomic adjustment policies embodied in the union budget, though we have also to consider the medium run macro implications of the exim policy, delicensing of industries and financial liberalisation.

On the Inflationary Impact of Budget Deficit

Mihir Rakshit There is no simple rule to assess the impact of deficit financing. A good deal regarding the scale and composition of the Budget must be known before its inflationary potential can be analysed. The paper examines the complexities of assessing the impact of deficit financing in the Indian context, and is intended to serve as a guide for such exercise.

The Budget and Plan Priorities

Mihir Rakshit The 1985-86 Budget proposals appear to have little link with the major findings and perceptions of the 'Economic Survey': in fact the former often stand opposed to the latter.

On Assessment and Interpretation of Saving-Investment Estimates in India

Saving-Investment Estimates in India Mihir Rakshit For analytical purposes it is useful to distinguish among three (often overlapping) sources of shortcomings in the Report of the Working Group on Savings: first, an inadequate appreciation of the implications of the CSO method of measurement; second, confusion in respect of the nature of the concepts used in national income accounting; and third, lack of a coherent macroeconomic framework for assessing and interpreting the data for capital formation and related aggregates. The issues thrown up by the Report are accordingly divided in to four groups in this paper.

Income, Saving and Capital Formation in India-A Step towards a Solution of the Saving-Investment Puzzle

The remarkable ruse in the net domestic saving and investment ration in the seventies has not been accompanied by any increase in the average growth rate of NDP during this period. The purpose of this paper is to indicate how puzzling this puzzle is.


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