RUSSIA-Tough Questions

period of two years, starting with 1993-94, the budget makes provision for what is obviously a large amount, Rs 5,700 crore, as capital contribution to the nationalised banks "to meet the gap created by the application of the first stage of the provisioning norms''. Though the amount proposed to be thus contributed to the banks capital is large, the manner of funding adopted is that the government's contribution would be made on the form of government bonds. Consequently, there will be no immediate budgetary outgo. But, as the finance minister has put it, "the interest payments on these bonds and their ultimate redemption will be a real burden on the budget in future". Several questions arise.