Date:29/09/2004 URL: http://www.thehindubusinessline.com/2004/09/29/stories/2004092900080801.htm

Back Fiscal imbalance

This has reference to the article "India's worsening fiscal imbalance" (Business Line, September 28). The author has rightly pointed out various reasons for fiscal deficit.

There are three major problems — one, there is no political will to correct the system. If bureaucrats are strict in collecting revenue they are transferred or harassed by politicians. The second is that some bureaucrats themselves are corrupt. The third is that austerity measures are not implemented due to political interference.

If these problems are not solved on an urgent basis, India cannot become a developed nation by 2020. It is worrying that only 25 per cent of the revenue is used for developmental activities and the remaining 75 per cent on Defence, subsidies and interest payments.

U. T. R. Sridhar Prasad

Chennai

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