Unrealistic Expectations

ALL fiscal and monetary indicators point to either a major fiscal crisis during 1997-98 or a further compression of real economic activity. Consumption and investment demand from the government administration and from public sector undertakings which plays a pivotal role at the margin in reviving activity from depressed economic conditions, is likely to be affected if the projected buoyancy in tax and other revenues does not materialise. And indications are that the expectations of the realisation of tax and non-tax revenues are inordinately optimistic.