ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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India, UK and ECM-Red Herrings

and the government has not been able to arrange for imports on anything like an adequate scale. Second, though the rate of increase in money supply so far this year has slowed down to 4.5 per cent compared to 6.5 per cent last year, deficit spending by the government, measured by net bank credit to government, has been substantially higher at Rs 1,046 crores upto mid- December compared to Rs 877 crores in the corresponding period last year -thus establishing once again that a year of rising prices, which in our circumstances is bound to have been one of poor agricultural production, will also be one in which, contrary to the dictates of economic theory, government spending bloats uncontrolled. And finally, to complete the picture, the long-delayed investments in power, steel, fertilisers, petroleum, cement and a host of other industries are still nowhere in sight. From a somewhat longer view, this might well be the bleakest aspect of the current economic situation

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