Government and Public Enterprise: Essays in Honour of - download pdf or read online

By G. Ram Reddy, V. V. Ramanadham

ISBN-10: 0203988779

ISBN-13: 9780203988770

ISBN-10: 0714632589

ISBN-13: 9780714632582

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Extra resources for Government and Public Enterprise: Essays in Honour of Professor V.V. Ramanadham

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In some cases, the budgets of subsidiaries are also submitted to government; but it is largely an area where much is dependent on the specific situation and initiative of government. The relationships between the sponsoring ministry and finance and planning agencies differ from country to country. In Portugal, the budgets are approved by the sponsoring ministry and only the relevant transfers on the current account are shown to the Finance Ministry while the capital budget and its relevance to the 6.

The use of public enterprises for purposes of stabilisation of the economy is not of recent origin. Following World War II enterprises were used for reconstruction of the economy and as tools for fighting recessions. The countercyclical role envisaged for enterprises was based on the belief that action through the market mechanism was not adequate, as “pushing the string” had its limitations, and that more active and direct participation in the economy was essential. While the countercyclical role of enterprises continues through the takeover of sick units or selective expansion of capacity, they have also been used since the early 1970s for reducing the rate of inflation through price restraint.

While the countercyclical role of enterprises continues through the takeover of sick units or selective expansion of capacity, they have also been used since the early 1970s for reducing the rate of inflation through price restraint. 2 More recent experience, however, indicates that this measure did not have the desired effect and that, on occasion, it exacerbated the inflationary pressures through increased government budget deficits and that the fine tuning of demand management was not altogether successful.

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Government and Public Enterprise: Essays in Honour of Professor V.V. Ramanadham by G. Ram Reddy, V. V. Ramanadham


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