Debt Servicing and Budgetary Structure

B P R Vithal This note attempts to show how we had a budgetary structure and practice which recognised the need to provide for amortisation of loans and how this was progressively dismantled. This has resulted in the issue of amortisation of debt being removed, first, from the accounts and, subsequently, from all prudent planning of public finance. Consequently the onus of dealing with the problem of public debt has progressively shifted from the borrower to the lender.