A+| A| A-

Off with Deficits

Off with Deficits! IN what the finance minister has in his budget speech described as a historic step, the government has agreed to accept a ceiling on its borrowing from the Reserve Bank against ad hoc treasury bills in 1994-95 and to altogether phase out such borrowing by 1997-98. This decision has, however, to be viewed against the series of measures taken as part of fiscal adjustment and financial sector reform. The notion of an absolute limit on, and eventual elimination of, the budget deficit as conventionally understood would have had some credibility when the government was still in control of a wider revenue base. Now, after the fiscal distortions introduced in the name of tax reform and opening of the economy to international competition, it is unlikely for some years to come at least that the government will be capable of sustaining any fiscal discipline.

To read the full text Login

Get instant access

New 3 Month Subscription
to Digital Archives at

₹826for India

$50for overseas users

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

EPW hopes the list is complete and apologises if the name of any referee has been excluded. Errors will be corrected on the web site.

NEGOTIATIONS arc under way between some leading units in the soap industry, the Government of India and an American firm, Atlantic Richfield, for...

The idea of a national interlinking of rivers needs to base itself on the past six decades' experience of river and fl ood control measures. A...

The Supreme Court's verdict directing the Government of India to implement the interlinking of rivers seems to have overlooked the regional and...

Kalyan Sanyal was trained as a trade theorist in the mid-1970s and initially made many signifi cant contributions in the fi eld. But he later...

Kalyan Sanyal's magnum opus, Rethinking Capitalist Development, can be seen as a contribution to the project of reimagining political economy in a...

The proposal for addressing the twin problems of fl oods and water scarcity by interlinking rivers is based on an outdated and dangerous idea of...

The Government of India, acting through the human resource development ministry, is actively considering a series of drastic changes to the...

Looking ahead, the big macroeconomic policy question for India is whether or not it should emphasise greater self-insurance with a necessarily...

Back to Top