Journal of Ravishankar University Vol. 05 No. A (Science) 1992  pp. 21-24  ISSN  0970 5910

An Analysis Of Expenditure On Debt Services Of The

Government Of Madhya Pradesh (1970 -'71 To 1989 -'90)

Neelam Gupta and Usha Dubey

School of Studies in Economics,

Pt. Ravishankar  Shukla University, Raipur

MS Received:  1 July 92 Revised 29 August 92

1. Introduction: Public debt is a source of income for the government. With the development  of democratic form of Government, public debt also. came into existence. The state no more confines its development  expenditure  to tax-revenue only: rather it is taking a broader and progressive  view of the responsibility and is undertaking   expenditure   out of borrowed money for the country's economic development. (Jain,1965)1 The states receive loans from various sources, but the most important source  is the fiscal assistance of Central Government and except in a few cases they have to pay interest on these loans.  The expenditure  on interest payment has been an important head of non-development  expenditure of the Government at all levels. In recent years many attempts have been made to study the growth of government  expenditure in different states and in India as a whole. Madalagi(1966)2 has presented an analysis of the trends in State Governments'  expenditure in India since five year plans. Pattnaik's study (1970)3 revealed a significant growth of .Public expenditure in Orissa during the period of 1951- 52 to 1965-66. Porwall (1972)4 has analysed the growth and pattern of government expenditure  in Rajasthan from 1949-50 to 1969-70. Nanjundappa (1976}5 has made inter-state  comparisons of both current and capital expenditure according to functional  and economic  Classification for the year 1960-61. Reddy (1976)6 has analysed the government expenditure inIndian states during the period of 1951to1975 and explained the causes of variations in expenditures of these states. Thimmaiah (1977)7 has studied the growth and pattern of public expenditure in Karnataka and has taken 21 years period from 1957-58 to 1977-78. Singh (1983)8 has presented the pattern and changing structure of public expenditure in Bihar from 1951-52 to 1979-80.Panigrahi (1985)9 has highlighted public expenditure inOrissa for the period of 1948-49 to1978-79.2.  Objectives: The main objectives of the present study are as follows :-(i) To find out the trends in expenditure on debt services of the government  of Madhya Pradesh.(ii) To compare the growth of the expenditure  on debt services of the Government of Madhya  Pradesh with neighbouring states.3.  Methodology: The present study is based on secondary data. The data are collected from various issues of Researve Bank of lndia Bulletin. The study covers the period of 20 years from1970-'71 to 1989- '90.

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