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DEFICIT
crisis
GROUP 1
SECTION D
A B H I N AV M A N C H A N D A
A K S H E Y B H O G RA
A L K A N E H RA
DEEPIKA PV
DEVDHAS KISHEN DANIEL
G A RV M A N C H A N D A
Concerns
Theoretical Perspectives
Neoclassical
Keynesian View
Ricardian
Equivalence
Rules and Targets for controlling Debt and Deficit
Maastricht Treaty 1992
Budget deficit <= 3% of GDP
Public debt <=60% of GDP
Fiscal Responsibility and Budget Management Act, 2003 (FRBMA)
Fiscal deficit to 3% of GDP by 2008
Rangarajan C & D.K. Srivastava, 2005. Fiscal deficit and government debt: Implications for growth and
stabilization Economic and Political Weekly
Rangarajan C & D.K. Srivastava, 2005. Fiscal deficit and government debt: Implications for growth and stabilization
Economic and Political Weekly
Contd.
2008 Onwards
Conclusions
FRAMEWORKS
India has a three tired federal form of govt.
Central government
State government
Local level
Planning commission- divides expenditures into planed and non-planed
components between state and central govt.
FRBMA-2003
Taxes
Direct
Indirect
Supriyo De, 2012. Fiscal policy in India: Trends and Trajectory. Ministry of Finance (Government of India)
Supriyo De, 2012. Fiscal policy in India: Trends and Trajectory. Ministry of Finance (Government of India)
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