Economic development in India c.1

One of the most important aspects of economic development in India is the extent of debt-financed government expenditure and its effects on various sectors of the economy. The present study is an attempt to analyse some of the more far-reaching effects of this aspect. The role of government expendi ture in the Indian economy is especially significant as conscious efforts are being made by all levels of government to foster rapid economic development and growth. In addition to focusing on the various theoretical aspects related to the results of debt-financed government spending, the study seeks also to design appropriate test procedures to highlight empirically the effect of debt financing in the Indian context. The structure and operation of public debt of the Central and State governments are described in detail so as to bring out clearly the insti tutional aspects of the government's debt in the country.

Analyses of the economic effects of government expenditure on private con sumption-saving behaviour in the eco nomy and also on private sector invest ment activity, are included in this study and it is therefore of immense use to scholars and researchers as well as to economists, policy-makers and develop ment executives in Government.