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

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Panchayati Raj

above points to a major problem in the debate on public expenditures. One expenditure is counterpoised against another whose choice is mostly arbitrary: It is argued on page 144 that subsidy on food should be targeted to the poor and scope of PDS ought to be limited. If the salaried employees are indexed fully as argued elsewhere, and PDS does not cover them then would that not lead to increased expenditures on account of salaries? It is not even clear that the salaried employees are responsible for inflation. Their salaries only respond to an ongoing inflation.

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