This deserves to be linked!<\/p>\n
\nCynics see the Common Minimum Program of the coalition government as the usual bunch of political promises: motherhood, apple pie, sugar and spice for all credulous suckers. The government itself calls the CMP reform with a human face. But what about the cost? Face-lifts are expensive, and may not improve your looks much. The CMP proposes to increase education spending by 2% of GDP, and health spending by another 1-2% of GDP. It promises a National Employment Guarantee, debt relief to the states, and doubled agricultural lending, each of which could soak up another 1% of GDP. Each 1% of GDP is Rs 25,000 crore, so the bill adds up alarmingly fast. <\/p>\n
How will it be paid? The CMP has no explanation, only a bland declaration that the governments revenue deficit will magically disappear by 2009. But much of the proposed new spending (on education, health, employment) is revenue expenditure. How then will the revenue deficit disappear? Through additional revenue maybe? <\/p><\/blockquote>\n