The government should focus more on expenditure based adjustments

IIPM PUBLICATION
Things have remained more or less the same. In 1991, the government owed to the outsiders and now it owes to the Indian public. On one hand, when India’s international investment position is improving, at the same time the government is heading towards bankruptcy. Revenues are failing to keep pace with unbridled government expenditure, resulting into one of the highest public debt in emerging economies. And to curtail the deficit, the government has been focusing more on revenue-based consolidation strategy, that is, increasing taxes and broadening the tax net. But to what extent has this strategy worked?

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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