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This paper traces the causes of the rapid growth of India’s public debt, with special reference to internal debt. It then demonstrates that the growth of debt would become unsustainable by the end of the 1990s if the present trends continue. It develops a methodology to iterate the path of growth of debt to discover the sustainable level of the primary deficit. Finally, it suggests concrete measures to bring down the primary deficit.
Debt Management --- Debt service --- Debt --- Debts, Public --- Domestic debt --- Economic sectors --- Expenditure --- Expenditures, Public --- Exports and Imports --- External debt --- Government business enterprises --- Interest payments --- International economics --- International Lending and Debt Problems --- Macroeconomics --- National Government Expenditures and Related Policies: General --- Nationalization --- Nonprofit Organizations and Public Enterprise: General --- Public debt --- Public enterprises --- Public finance & taxation --- Public Finance --- Public ownership --- Sovereign Debt --- India
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Dr. Chelliah's central premise is that the major fault of India's economic policy has been that it was largely based on democratic socialist thought, thereby entrusting the government with the greatest responsibility, but without delineating in sufficient detail of how the government should respond to the challenge.
Poverty --- Fiscal policy --- Destitution --- Wealth --- Basic needs --- Begging --- Poor --- Subsistence economy --- Government policy --- India --- Economic policy. --- Economic conditions.
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