The Budget Lengthening Shadows

The Budget: Lengthening Shadows Bhabatosh Datta If one were to discern a direction which central budgets seem to be taking it would be as follows. Total government expenditure will increase, the non-plan component increasing faster and the non-developmental part increasing faster still Large loans will be taken not for creating productive assets but for revenue expenditure. The overall deficit financed by Reserve Bank credit will increase. If availability of foodgrains and other essentials do not rise at the desired rate, the result will be inflationary pressures. Mounting debt service charges wilt put severe pressure on the balance of payments. The state governments will be hamstrung by shortage of financial resources, after meeting their own debt service charges.