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

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Gender in Mainstream Politics-Case of Telugu Desam Party

for the Planning Commission, which was published after some revision in this journal (EPW, May 4, 1991) had placed the level of unrecovered costs (or subsidy) at 14.38 per cent of GDP in 1987-88. Now, despite a reduction in aggregate public expenditures of the centre and states together from 33.4 per cent of GDP in that year to 28.4 per cent in 1994-95, total unrecovered costs still constitute the same 14.4 per cent of GDP as per the latest study, thus implying a significant deterioration in the recovery rates for the user costs of public services. The recovery rate was 34.91 per cent for the centre and 13.91 per cent for the states, or an average of 25.09 per cent, in 1987-88 but they have drastically fallen to 10.7 per cent, 7.0 per cent and 8.2 per cent, respectively. The increase in the reported incidence of subsidy and the drastic fall in the rate of recovery of user costs is neither due to the proliferation of subsidies nor due to an expansion and growth of governmental activities, as it is made out in the government paper. The share of public expenditure as percentage of GDP, as indicated above, has in fact been on a downward trend. Likewise, the 1990s have seen, under the impulse of stabilisation and structural adjustment programmes, a constant endeavour on the part of the governmental authorities to contract subsidies. Thus, the size of explicit subsidies in the central budget as proportion of GDP has come down from (RE). Also, an independent study by the RBI

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