A very big government.

in 2007-08 total government revenue in India was Rs 5.4 trillion and spending Rs 7.1 trillion with a deficit of Rs 1.7 trillion but in 2011-12 revenue increased to Rs 7.7 trillion but expenses shot up to Rs 13.2 trillion, a deficit of Rs 5.2 trillion. Fiscal deficit is 68% of revenue which means that the government is spending two thirds more than it earns. Some spending is fixed, for instance defense spending which is Rs 1.8 trillion, interest payments Rs 2.8 trillion and subsidies Rs 2.2 trillion. Of this interest payments would come down if spending was reduced and we had a budget surplus. Much of subsidies are lies put out by politicians and spread by the freeloading press. The government levies huge taxes at source and then pretends to sell at a discount as in petrol or gives away free electricity to farmers and slums and then increases prices for those who pay thus increasing taxes for the middle class. The real subsidies are what the government spends on criminal politicians and useless, parasitic civil servants. There are 341 million civil servants including railways and Public Sector Undertakings or PSUs incurring a wage bill of Rs 591.43 billion. Air India has 27000 employees earning Rs 36.09 billion. Railways wage bill, including pay, allowances and travel allowances, is Rs 265.85 billion. MNREGA scheme which pays Rs 162 per day for 100 days every year to rural poor for doing nothing costs Rs 400 billion. This was a totally cynical scheme started by the Congress in 2008 to win the elections in 2009 and has pushed up rural wages and resulted in double digit food inflation which is killing the middle class and the urban poor. National Rural Health Mission costs Rs 120 billion. This is so corrupt that it has already resulted in the deaths of 2 Chief Medical Officers in UP. The Center has asked state governments and utilities to restructure loans of electricity distribution companies to the tune of Rs 1.5 trillion. This is probably to protect banks which are already having to deal with Rs 350 billion of bad loans from the textile sector and Rs 180 billion from Air India apart from other companies which are in trouble. It must be a joke because most state governments are already running huge deficits and the state electricity boards are bankrupt. They only way is to stop waste of electricity, which exceeds 40% in Delhi, due to blatant pilferage. Our trade deficit was $ 185 billion last fiscal. Already S&P is warning that it could reduce our credit rating from BBB-, which is the lowest investment grade, to junk status. In a report titled " Will India Be The First Bric Fallen Angel " S&P says," Setbacks or reversals in India's path toward a more liberal economy could hurt its long-term growth prospects and, therefore, its credit quality." Only a World Famous Economist can make such a dog's breakfast of the economy.