Studies In Indian Economy (Vol. 1)

In recent years India has made all-round rapid progress. The performance of the Indian economy in 2004-05 so far has exceeded expectations formed at the beginning of the year. According to the advance estimate of the Central Statistical Organisation (CSO) released on February 7, 2005, the economy is likely to grow 6.9 per cent in 2004-05.
In spite of fast advancement in several fields, India is still suffering from a large fiscal deficit which has risen to an alarming level. During the year 2004-05, the fiscal deficit at the Centre stood at a whopping sum of Rs.1,51,144 crore, i.e. 4.4 per cent of the Gross Domestic Product (GDP). The revenue deficit amounted Rs.95,312 crore. The curve of fiscal deficit has risen sharply from the year 1997-98 mainly because of expenditure on current account. The main reasons for this alarming fiscal deficit are: populist measures of the Central and State Governments, like subsidies on kerosene oil, diesel, petroleum, gas, fertilisers, power for agriculturists, large losses of public sector undertakings, interest payment on ever-increasing public debt, increase in salaries and pensions resulting from the recommendations of Pay Commissions, etc. The global rating agency Standard and Poor’s (S & P) has stated that even the Union Budget 2005-06 shows a lack of success in reducing the country’s deficit burden.
It is hoped that the book would be found useful by the researchers and students of Economics, businessmen, government executives concerned with the formulation and execution of economic policies, parliamentarians and legislators, and the general readers interested in knowing the changes that are taking place in our economy.