Some Macro-Economic Propositions around Current Budgetary Policy

Some Macro-Economic Propositions around Current Budgetary Policy Prabhat Patnaik The essential feature of the current budgetary policy consists in the following: raising substantial additional resources through indirect taxation, of which the freight, price and duty hikes are but specific examples, for investment in a few key areas, notably energy, while attempting to keep the budget deficit within reasonable bounds that would also riot be too offensive to the I\MF. In this paper the author discusses not so much the details of this year's budget proposals as certain macro-economic implications of this overall budgetary policy, which surprisingly have drawn rather less attention than they should have.