IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-37107-1_3.html
   My bibliography  Save this book chapter

Macroeconomic Developments

In: Investing in India

Author

Listed:
  • Shanta Acharya

Abstract

The major challenge for India’s planners remains the management of the fiscal deficit as it is crucial to sustaining higher growth. The structural adjustment programme initiated in 1991 was to address that issue. Unfortunately, the rise in the fiscal deficit in 1993–94 did not inspire confidence in the ability or the willingness of the government to manage the fiscal situation efficiently. While there is no risk of reforms being reversed, the rule of populism and the decline in the quality of expenditure management mean that reforms continue at a pace slower than warranted. However, the downward trend in the fiscal deficit since 1993–94 has been encouraging. If the deficit is maintained below the 5 per cent level of GDP with higher public spending on infrastructure and the social sectors, India could sustain higher growth and investor confidence.

Suggested Citation

  • Shanta Acharya, 1998. "Macroeconomic Developments," Palgrave Macmillan Books, in: Investing in India, chapter 3, pages 71-134, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37107-1_3
    DOI: 10.1057/9780230371071_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-37107-1_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.