Summary |
India has a long history of running high fiscal deficits. The political imperatives that arise from widespread poverty combined with massive leakage of resources due to corruption have resulted in a string of deficits over the years. The persistently high deficits are partly the result of the need for coalition governments to accede to the demands of a variety of constituencies. The second obvious reason is the extremely high level of corruption in India. Unofficial reports state that upwards of 50% of all government spending is lost to corruption and theft.
India has a wide range of corruption. Accentuating the subject, private sector is always accountable for fostering the corruption in a country and India has a long way to go to ameliorate its regulatory framework to counter it. Every country has corruption, however it should not become a norm. As per local media, year 2010 declared as the year of scam. Apparently, India is a capitalist economy and almost every country in this world has a certain level of corruption. It is not starling, that India has been multiple scams in a wide range of issues of course the extent of corruption matters, too but here the question is, how the country deal with those issues and the ability of its judicial system to resolve it.
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