Bitter medicine

Govt expenditure as a percentage of total expenditure is far above the average—that’s the crux of the fiscal problem
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First Published: Sun, Dec 23 2012. 09 35 PM IST
The solution lies not only in reducing expenditure, but ensuring that revenue too increases as a percentage of GDP.  Photo: Priyanka Parashar/Mint
The solution lies not only in reducing expenditure, but ensuring that revenue too increases as a percentage of GDP. Photo: Priyanka Parashar/Mint
photo
The chart compares government expenditure in India with that of other emerging markets in the region. The data is from the International Monetary Fund’s latest Fiscal Monitor. India falls below the average of Asian emerging markets in government revenue as a percentage of gross domestic product (GDP). On the other hand, government expenditure as a percentage of total expenditure is far above the average. That is the crux of the government’s fiscal problem. The chart seems to suggest the solution lies not only in reducing expenditure, but ensuring that revenue too increases as a percentage of GDP.
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First Published: Sun, Dec 23 2012. 09 35 PM IST
More Topics: chart of the day | fiscal | economy | chidambaram | IMF |
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