Taking Care of Growing Fiscal Deficit

SIR,

 

 

The populist schemes, negligence by government to disinvest some loss making public sector units, non streamlining the taxing methods, improper pricing mechanisms, lack of seriousness to reduce deficit, etc led to increase in the fiscal deficit.

There has also been opposition from the employees of some PSU's for privatisation. Farm loan waiver scheme, 6th pay commission recommendations, and other populist schemes contributed to the growth of fiscal deficit.

This menace has become a major challenge for the governments at both the central and state levels.

Where ever possible the government should reduce it's expenditure and increase it's revenue, for instance the government can reduce the size of ministers and their foreign trips.

All the out standing disputes with the neighbouring countries should be resolved to decrease the defence expenditure drastically. For instance, the recent Mumbai attacks are responsible for increase in the expenditure on defence like commencing new regional NSG hubs.

The government can also rely on cheap technology rather than depending on obsolete methods which are al;so costly.

Increasing the taxes where ever necessary and their effective collection, utilising technology effectively, reducing expenditure on un productive aspects, etc may help in reducing fiscal deficit.

U.T.R.SRIDHAR PRASAD;

VICE-PRINCIPAL;

HYDEARBAD.