Economy and the Budget

Arun Ghosh This paper discusses (i) the state of the Indian economy as of mid-March 1995; (ii) the extent to which the union budget for 1995-96 may he expected to restore balance in the economy; (iii) some specific aspects and implications of the revenue raising and expenditure thrusts of the budget; (iv) the extent to which the budget may be expected to stimulate the economy; and (v) the devolution of resources from the centre to the states in 1995-96 and the implications thereof THE Economic Survey, presented a day before the annual union budget this year, gives a picture of the state of the Indian economy, against the backdrop of which the union budget for 1995-96 is drawn up.