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

A+| A| A-

Beyond Budgetary Sums

WEEKLYECONOMIC AND POLITICAL Beyond Budgetary Sums For all the excitement and hype extending over weeks and months and actively encouraged by the finance minister himself, the NDA government

For all the excitement and hype extending over weeks and months and actively encouraged by the finance minister himself, the NDA governments budget for 2000-2001, now that it has been presented, has shown once again how, in the larger scheme of management of the economy, the role of the central governments annual budget is vastly exaggerated. The focus of attention, and criticism, in comments on the budget has been the finance ministers failure to contain the governments fiscal deficit. For this the minister, with his talk of how he was going to bite the bullet and not shrink from harsh decisions, has only himself to thank.

The fiscal deficit in the current year, 1999-2000, has turned out to be Rs 1,08,898 crore, exceeding by Rs 28,943 crore or over 36 per cent the finance ministers target for the year. As a proportion of GDP the fiscal deficit in 1999-2000 is now estimated at 5.6 per cent compared to the budgetary expectation of 4 per cent. Chastened no doubt by this experience, the finance minister has settled for a conspicuously modest reduction of the fiscal deficit to 5.1 per cent of GDP in the budget for the coming year. What these numbers mean is that in regard to the mismatch between the governments revenue and expenditure we are more or less back to the position at the height of the economic crisis at the beginning of the decade. Taking the centre and the states together, governments reliance on borrowings is almost 10 per cent of GDP this year and is likely to hover around the same level in 2000-2001.

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here


To gain instant access to this article (download).

INR 59

(Readers in India)

$ 6

(Readers outside India)

Support Us

Your Support will ensure EPW’s financial viability and sustainability.

The EPW produces independent and public-spirited scholarship and analyses of contemporary affairs every week. EPW is one of the few publications that keep alive the spirit of intellectual inquiry in the Indian media.

Often described as a publication with a “social conscience,” EPW has never shied away from taking strong editorial positions. Our publication is free from political pressure, or commercial interests. Our editorial independence is our pride.

We rely on your support to continue the endeavour of highlighting the challenges faced by the disadvantaged, writings from the margins, and scholarship on the most pertinent issues that concern contemporary Indian society.

Every contribution is valuable for our future.