Paper- Unwarranted Optimism

December 20, 1980 financial year. Last year, Reserve Bank credit to government had continued to he low at Rs 527 crore upto the first week of December 1979, and yet the year finally ended with a net Reserve Bank credit of Rs 2,966 crore (broadly the equivalent of Rs 2,700 crore of deficit financing according to the bud- getary concept). The last quarter of this year would involve likewise a substantial increase in government dependence on tho Reserve Bank, Therefore, it would be something of a miracle if deficit financing in 1980-fil is kept below Rs 2,700 crore.