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

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Caught in Contradictions of Mixed Economy

Caught in Contradictions of Mixed Economy C T Kurien It is evident from the Budget for 1986-87 that the Finance Minister is going neither by the recommendations of the Seventh Plan document nor by his own Long-Term Fiscal Policy statement. The government appears to be unable to generate resources from its own enterprises. It is unwilling or afraid to tax those who are rich and growing richer. It feels compelled to increase the outlay on so-called welfare measures. It is then left with no option but to fall back on indirect taxes and rely more than ever on borrowings from those who expect interest and tax concessions for temporarily parting with their resources to enable the government to continue its 'development programmes'. That simply is the fiscal 'strategy' that the 1986-87 Budget reflects. It is no strategy at all; only a matter of necessity WHEN we decided, soon after Independence, that the Indian economy would have a programme of planned economic development, but within the framework of a 'mixed economy', it was acclaimed as an effort to combine the best features of both capitalism and socialism. What the economic policies of the present administration

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