ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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The 1984-85 Budget-Gathering Fiscal Crisis

Gathering Fiscal Crisis Prabhat Patnaik The 1984-85 Budget appears rather bemusing at first sight. The Central Plan outlay is to be stepped up by as much as 25 per cent, but no major tax efforts have been made, And yet the magnitude of deficit financing is estimated not to exceed Rs 1,762 crore, which is less than Rs 200 crore in excess of what was proposed in last year's budget. What then has happened to the fiscal crisis which even the Economic Survey had hinted at? How has the Finance Minister managed his sums so that so much seems achievable with so little effort? The simple answer to this is that there is a great deal of 'window dressing. The impression of fiscal soundness which the Budget exudes is altogether misleading.

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