Janata Party president Subramanian Swamy on Thursday said that India was heading towards budgetary bankruptcy due to increasing revenue expenditure. The Centre should find new ways and means to raise money and run the government.
Delivering the chief guest address on ‘Budget 2010 – an analysis' organised by Sindhi Chamber of Commerce, he said that in the next three years, India would face a real financial crisis, as the Centre was not in a position to reduce its expenditure of various accounts such as police, defence, pensioners, grants to states, subsidies and interest payment on past loans among others. Money was borrowed from public sector banks to meet the revenue expenditure.
“The fiscal deficit is too high. It is controlled by taking loans from public sector banks. Currently, for a loan of every Re.1, the Centre has to pay back 98 paise and by 2013, it would be paying Rs.1.03,” he said. Mr. Swamy said that he would have suggested several ways to bail the Indian economy from the present crisis – by linking the rivers, abolishing income tax for professionals and middle class people, empowering farmers to grow three crops in a year through a variety of methods to convert India into an agriculture exporting country, changing labour laws, deploying IT and developing infrastructure in all the sectors.