The Hindu Business Line : Fiscal sickness

Developing countries such as India are in a state of transition. As Mr Fred Riggs, an administrative analyst, pointed out, there are certain characteristics, such as formalism, poly-normativism and nepotism, which are peculiar to developing nations. Here, the behavioural pattern of political and administrative executives is deviant from the rules.

The reason for such deviation is the multi-forces, such as people's demand, commitments of the political parties and pressure groups, which decides often the actions of the executives.

Hence, any statutory enactments, such as the Fiscal Responsibility and Budget Management Act, for reducing the fiscal deficit will have little impact in the behavioural pattern of the spending authorities.

However, it is pertinent that the terms dictated by the international aiding agencies also act as one such external factor, influencing highly the actions of the executive.

It will certainly help goading the fiscal authorities to take concrete steps to reduce fiscal deficit.

C. Ramesh

Keeramangalam

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