Wednesday, August 4, 2010

The Bankruptcy

The Indian government has budgeted to borrow 4.57 lakh crore rupees to meet the annual expenditure at rupees 11.87 lakh crore. The expenditure includes interest payment on earlier loan. The interest payment on this year's new loan will be an additional burden to the government. It is a matter of grave concern if any government's earning is able to meet only half of its budgeted expenditure. Despite the financial crisis the country is facing, the government hopes to reduce the fiscal deficit to 5.5. per cent of GDP from the current year's 6.9 per cent. The hopes come out of an estimate of disinvestment proceeds of Rs. 400 billion and estimate of Rs. 350 billion from 3G wireless radio spectrum auction. The government deficit is expected to be reduced mainly on the back of 'strong economic growth'. There must be an Aladdin who will bell out the country very soon. Please believe in our government as you believe in your wife.

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