Fiscal Policy in India and Canada

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Case Details:

Case Code : ECON004
Case Length : 04 Pages
Period : 1994 - 2002
Pub Date : 2004
Teaching Note : Available
Organization : -
Industry : -
Countries : India, Canada

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Caselet 01

The fiscal deficit is one of the most serious problems facing the Indian economy. For the year 2001-02, the central fiscal deficit was 5.7 percent of the GDP. If the fiscal deficit of the state governments is included, it amounts to more than 10 percent. This is large by any standard. Despite the fact that reforms were initiated more than a decade ago, the Indian economy has failed to contain the fiscal deficit...

Caselet 02

Any tax policy should aim at increasing revenues and providing stimulus for industry. There has to be a balance between the two. A direct relationship exists between tax collection and economic growth. With the liberalization of the economy and with the private sector playing an active role in all economic activities, the Government of India (GoI) should concentrate more on the social infrastructure...

Caselet 03

In the last decade, India's foreign exchange (forex) reserves have shown a healthy growth. In 2002, India's forex reserve touched $54 billion.

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Caselet 03

There is hardly any country which is free from public debt. USA, one of the world's most powerful economies has a public debt running into trillions of dollars. Another North American country, Canada, has an accumulated debt of $576 billion. Canada's public debt needs a mention because it has a population of only 25 million, thus it can be said that the per capita debt of Canada is $20,000...

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.


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