• About Us
      Asia’s 1 st LEED Platinum Rated Campus

      Asia’s 1st LEED Platinum Rated Campus

      About Us

      • Chairman's Message
      • Vice Chairman & CEO
      • Dean's Message
      • Governing Council
      • Business Advisory Council
      • Academic Advisory Council
      • Work With Us
      • Mandatory Disclosure
      • Anti-Ragging Notice

      TERM ZERO

      Media

      • News
      • Events
      • In Media
      • Media Kit

      Rankings

      Accreditations

      NIRF

      Campus

      Blog

      Annual Events

      • Convocation
      • TEDxGLIMChennai
      • L'Attitude
      • Digital Symposium
      • Sangamitra
      • Annual Alumni Meet
      • SWIM
      • IEC
      • Human Capital Management
  • Programs
      Transform and Lead

      Transform and Lead

      Full Time Programs

      PGPM

      One Year MBA for professionals with work experience

      Learn More Apply Now

      PGDM

      Two Year MBA for professionals with 0-2 years of work experience

      Learn More Apply Now

      EXECUTIVE EDUCATION

      Partner with us for customized learning solutions for your organisation

      Learn More

      Corporate Programs

      PGXPM

      Executive program for Mid & Senior Level working professionals

      Learn More Apply Now APP. Deadline: 30th August, 2020

      PGPM Flex

      Weekend management program for young working professionals

      Learn More Apply Now APP. Deadline: 30th August, 2020

      MBA in Business Analytics

      Family Enterprises Management

  • Faculty & Research
      Ranked 6th

      Ranked 6 th

      by NIRF ranking in teaching and learning among all B-Schools in the country

      Faculty

      • Full Time Faculty
      • Visiting Faculty
      • Adjunct Faculty

      Research

      • Faculty Editors
      • Papers & Journal Publications
      • Case Studies & Books
      • Conference Proceedings

      Centers of Excellence

      • Centre For Excellence in Retail Management
      • Great Lakes Centre For Management Research
      • Kotler - Srinivasan Centre for Research in Marketing
      • Centre for Excellence in Business Analytics and Business Intelligence
      • CET
      • Union Bank Centre for Banking Excellence

      Conferences

      • NASMEI
      • Financial Conference
  • Recruiters & Companies

      “Great Location for Talent. We are happy to continue visiting and having budding professionals join us and grow their careers.”

      Anil Visal

      Partner - Deloitte India

      Campus Recruitment

      • Recruitment Process
      • PGDM Class Profile 2018-20
      • PGPM Class Profile 2019-20
      • Past Recuiters
      • Student Achievements
      • Recruiters Speak

      Internships

      • Recruitment Process
      • PGDM Class Profile 2019-21
      • Live Projects

      Placement Reports

      • PGPM
      • PGDM
      • Internship Report

      Leadership Series

      • Titans Speak
      • Industry Lecture Series
      • Thought Leader Series

      Talent Listings

  • Alumni

Government Debt: Destroyer of Countries

April 28, 2014 | Posted by bobbysrinivasan << back to blog

                                                                                                                   14/4/2014

Some countries have become so habituated to debt that they have never heard of the word surplus. In the budget of 2013-14, our finance minister declared that he will borrow 29 Rs out of 100 Rs to be spent. This is staggering. The revenue collection in the form of taxes and duties have fallen short of the government needs. Needless to say, any new government will find the task of reducing the deficit quite a challenge. Unless the Indian economy recovers from its 5 percent economic growth rate the amount of deficit cannot be reduced. The new government may require draconian measures to reduce the expenditure and increase revenue by introducing new taxes. The only comforting factor is that we are not alone overspending and the latest data from the US confirms this.

The US government debt has reached 17.5 trillion dollars (No small change). There are 115 million tax + payers and so the percapita debt of the tax payers stands at $152000. The government is drowning in debt and the narrative is always the same.

  1. Government borrows too much
  2. Government prints money in a desperate attempt to service debt
  3. Government will ultimately print too much money, destroying its currency and the savings of all its citizens

As far as India is concerned, the new government should put as its top priority to reduce the budget deficit. If this rate of deficit continues, our country will become vulnerable to external pressure to devalue our currency massively. Our government’s subsidy bill is beyond repair. As of last budget nearly 11 percent of expenditure is for subsidies. Politically it may be suicidal to reduce the subsidy but the economic reality calls for it immediately. At the moment our government is downplaying a potential crisis. As and when it arrives, we will end up with a serious problem to reckon with.

 

<< back to blog

Programs

PGPM - One Year MBA for professionals with 2+ years work experience

Learn More >

PGDM - Two Year MBA for graduates with 0-2 years work experience

Learn More >

Events

Union Bank Finance Conference
Dec 17, 2020

Networking with Champions
Nov 08, 2020

Harry Kraemer on Performance with A Purpose
Oct 08, 2020
Read more

Successful Women in Management (SWIM) Lecture Series
July 05, 2020
Read more

The Great Circle Alumni Talk Series
July 04, 2020
Read more

  • About Us
  • Programs
  • Faculty & Research
  • Recruiters & Companies
  • Alumni
  • Blog
  • Contact Us