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

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THE BUDGET-A Dead Man s Shadow

a drastic reduction in the monetised deficit in 1996-97, from Rs 19,855 erore in 1995-96 to Rs 2,743 crore. The central plan outlay, which was placed at Rs 87,086 crore in the budget for 1996-97, has been slashed to Rs 77,518 crore in the revised estimates. Public sector undertakings too have not been able to mobilise resources to fulfil their investment programmes in 1996-97; this has been particularly true of units in the infrastructure sector. The effects of lower public investment have been reinforced by the sharp reduction in the supply of institutional credit and the steep increase in real rates of interest. Further, exports have failed to provide any impetus to industry, due partly to the sluggishness in international trade and partly to the government's inability to put in place a dynamic export-import policy. Finally, asymmetries in the structure of customs duties on finished goods and raw materials, spares and components and between customs and excise duties which have favoured imports vis-a-vis domestic production have also begun to hurt domestic industry.

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