Fiscal Policy in India and Canada |
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Caselet 01The fiscal deficit is one of the most serious problems facing the Indian economy. For the year 2001-02, the central fiscal deficit was 5.7 percent of the GDP. If the fiscal deficit of the state governments is included, it amounts to more than 10 percent. This is large by any standard. Despite the fact that reforms were initiated more than a decade ago, the Indian economy has failed to contain the fiscal deficit...
This is a remarkable achievement after the serious Balance of Payments (BoP) crisis faced by the country in 1990-91...
Caselet 03There is hardly any country which is free from public debt. USA, one of the world's most powerful economies has a public debt running into trillions of dollars. Another North American country, Canada, has an accumulated debt of $576 billion. Canada's public debt needs a mention because it has a population of only 25 million, thus it can be said that the per capita debt of Canada is $20,000... |
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