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

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Macroeconomic Impact of Public Sector Enterprises-Comment

Macroeconomic Impact of Public Sector Enterprises Comment S Mohanan Pillai THE operational inefficiencies of Public Sector Enterprises (PSEs) and their impact on government finances have been much- debated issues in the policy circles. Though rhetoric very often gains currency, hardly any concerted effort has so far been made to empirically quantify the implication of public sector units on the fiscal crisis. R Nagaraj ('Macroeconomic Impact of Public Sector Enterprises; Some Further Evidence', EPW, January 16-23). has raised a few issues, viz, whether the deficit of the PSEs has increased over the years, whether the financial burden of the PSEs on the government budget increased over the period, whether the internal resource generation of PSEs has been lower than that of private corporate sector and whether there is any observed improvement in resource generation by PSEs in the 80s, and if so, whether it is on account of increase in administered prices.

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