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UTTAR PRADESH-Political Games

of the returns from equities; in fact a large number of cash scrips continue to languish for want of investor support. Finally, the availability of easy foreign exchange from portfolio investment has caused a series of distortions: massive liquidity in the system giving rise to anxiety about inflation; large borrowing by the government from the money market, far beyond the budgeted levels, to finance current expenditure; large subventions to the export sector by holding the exchange rate of the rupee at an artificially depreciated level; and, above all, scant concern for augmenting domestic saving, say, to a minimum incremental saving-to- GDP ratio of one-third so as to make possible a significant rise in domestic investment even as public expenditure on the social . and economic infrastructure is simultaneously stepped up. These vital issues of sound economic management, alas, continue to get short shrift at the hands of the government.

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