Fiscal options for stabilisation

• Completion date जनवरी., 1993
• Sponsor RBIC
• Project leader Sudipto Mundle
• Other faculty H. Mukhopadhyay
• Focus

  This study has analyzed the impact of different fiscal policy instruments on inflation, growth, investment, money supply, Central government expenditure and the trade deficit during 1992 to 1994 under alternative scenarios. The macro econometric model developed for this purpose incorporates several novel features in order to capture certain structural specificities of India's highly regulated economy. The fiscal instruments analyzed include tax policy, administered price policy, fiscal deficit and revenue expenditure control. Other policies such as variation in term lending by financial institutions have also been analyzed.