Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 73,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'catslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 73,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'catslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
$message = 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
$stackFrame = (int) 1
$trace = [
	(int) 0 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ServerRequest.php',
		'line' => (int) 2421,
		'function' => 'deprecationWarning',
		'args' => [
			(int) 0 => 'The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead.'
		]
	],
	(int) 1 => [
		'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
		'line' => (int) 74,
		'function' => 'offsetGet',
		'class' => 'Cake\Http\ServerRequest',
		'object' => object(Cake\Http\ServerRequest) {},
		'type' => '->',
		'args' => [
			(int) 0 => 'artileslug'
		]
	],
	(int) 2 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Controller/Controller.php',
		'line' => (int) 610,
		'function' => 'printArticle',
		'class' => 'App\Controller\ArtileDetailController',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 3 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 120,
		'function' => 'invokeAction',
		'class' => 'Cake\Controller\Controller',
		'object' => object(App\Controller\ArtileDetailController) {},
		'type' => '->',
		'args' => []
	],
	(int) 4 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/ActionDispatcher.php',
		'line' => (int) 94,
		'function' => '_invoke',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(App\Controller\ArtileDetailController) {}
		]
	],
	(int) 5 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/BaseApplication.php',
		'line' => (int) 235,
		'function' => 'dispatch',
		'class' => 'Cake\Http\ActionDispatcher',
		'object' => object(Cake\Http\ActionDispatcher) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 6 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Http\BaseApplication',
		'object' => object(App\Application) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 7 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/RoutingMiddleware.php',
		'line' => (int) 162,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 8 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\RoutingMiddleware',
		'object' => object(Cake\Routing\Middleware\RoutingMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 9 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Routing/Middleware/AssetMiddleware.php',
		'line' => (int) 88,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 10 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Routing\Middleware\AssetMiddleware',
		'object' => object(Cake\Routing\Middleware\AssetMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 11 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Middleware/ErrorHandlerMiddleware.php',
		'line' => (int) 96,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 12 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 65,
		'function' => '__invoke',
		'class' => 'Cake\Error\Middleware\ErrorHandlerMiddleware',
		'object' => object(Cake\Error\Middleware\ErrorHandlerMiddleware) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {},
			(int) 2 => object(Cake\Http\Runner) {}
		]
	],
	(int) 13 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Runner.php',
		'line' => (int) 51,
		'function' => '__invoke',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\ServerRequest) {},
			(int) 1 => object(Cake\Http\Response) {}
		]
	],
	(int) 14 => [
		'file' => '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Http/Server.php',
		'line' => (int) 98,
		'function' => 'run',
		'class' => 'Cake\Http\Runner',
		'object' => object(Cake\Http\Runner) {},
		'type' => '->',
		'args' => [
			(int) 0 => object(Cake\Http\MiddlewareQueue) {},
			(int) 1 => object(Cake\Http\ServerRequest) {},
			(int) 2 => object(Cake\Http\Response) {}
		]
	],
	(int) 15 => [
		'file' => '/home/brlfuser/public_html/webroot/index.php',
		'line' => (int) 39,
		'function' => 'run',
		'class' => 'Cake\Http\Server',
		'object' => object(Cake\Http\Server) {},
		'type' => '->',
		'args' => []
	]
]
$frame = [
	'file' => '/home/brlfuser/public_html/src/Controller/ArtileDetailController.php',
	'line' => (int) 74,
	'function' => 'offsetGet',
	'class' => 'Cake\Http\ServerRequest',
	'object' => object(Cake\Http\ServerRequest) {
		trustProxy => false
		[protected] params => [
			[maximum depth reached]
		]
		[protected] data => [[maximum depth reached]]
		[protected] query => [[maximum depth reached]]
		[protected] cookies => [
			[maximum depth reached]
		]
		[protected] _environment => [
			[maximum depth reached]
		]
		[protected] url => 'latest-news-updates/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347/print'
		[protected] base => ''
		[protected] webroot => '/'
		[protected] here => '/latest-news-updates/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347/print'
		[protected] trustedProxies => [[maximum depth reached]]
		[protected] _input => null
		[protected] _detectors => [
			[maximum depth reached]
		]
		[protected] _detectorCache => [
			[maximum depth reached]
		]
		[protected] stream => object(Zend\Diactoros\PhpInputStream) {}
		[protected] uri => object(Zend\Diactoros\Uri) {}
		[protected] session => object(Cake\Http\Session) {}
		[protected] attributes => [[maximum depth reached]]
		[protected] emulatedAttributes => [
			[maximum depth reached]
		]
		[protected] uploadedFiles => [[maximum depth reached]]
		[protected] protocol => null
		[protected] requestTarget => null
		[private] deprecatedProperties => [
			[maximum depth reached]
		]
	},
	'type' => '->',
	'args' => [
		(int) 0 => 'artileslug'
	]
]
deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f0bb4015e67-trace').style.display = (document.getElementById('cakeErr67f0bb4015e67-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f0bb4015e67-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f0bb4015e67-code').style.display = (document.getElementById('cakeErr67f0bb4015e67-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f0bb4015e67-context').style.display = (document.getElementById('cakeErr67f0bb4015e67-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f0bb4015e67-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr67f0bb4015e67-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 38216,
		&#039;title&#039; =&gt; &#039;Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Telegraph&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;
&lt;br /&gt;
On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;
&lt;br /&gt;
The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;
&lt;br /&gt;
In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Telegraph, 9 January, 2019, https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 4686347,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 38216,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Reserve Bank of India,Reserve Bank of India (RBI),fiscal deficit&#039;,
	&#039;metaDesc&#039; =&gt; &#039;
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Telegraph&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;&lt;br /&gt;On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;&lt;br /&gt;The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;&lt;br /&gt;In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;&lt;br /&gt;Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot; title=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 38216,
	&#039;title&#039; =&gt; &#039;Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Telegraph&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;
&lt;br /&gt;
On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;
&lt;br /&gt;
The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;
&lt;br /&gt;
In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Telegraph, 9 January, 2019, https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 4686347,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {},
		(int) 2 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 38216
$metaTitle = &#039;LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;
$metaKeywords = &#039;Reserve Bank of India,Reserve Bank of India (RBI),fiscal deficit&#039;
$metaDesc = &#039;
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-The Telegraph&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;&lt;br /&gt;On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;&lt;br /&gt;The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;&lt;br /&gt;In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;&lt;br /&gt;Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot; title=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik | Im4change.org</title>
    <meta name="description" content="
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <div align="justify">-The Telegraph<br /><br /><em>Our public discourse should be informed by economic theory that is free of obfuscations<br /></em><br />For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&rsquo;s reserves should be drawn down by the government to finance its expenditure.<br /><br />On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.<br /><br />The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.<br /><br />In fact, however, the argument for running down the RBI&rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.<br /><br />Please <a href="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw" title="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw">click here</a> to read more. <br /></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$maxBufferLength = (int) 8192
$file = '/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php'
$line = (int) 853
$message = 'Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853'
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 48
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Code Context
            $response->getStatusCode(),

            ($reasonPhrase ? ' ' . $reasonPhrase : '')

        ));
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f0bb4015e67-trace').style.display = (document.getElementById('cakeErr67f0bb4015e67-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f0bb4015e67-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f0bb4015e67-code').style.display = (document.getElementById('cakeErr67f0bb4015e67-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f0bb4015e67-context').style.display = (document.getElementById('cakeErr67f0bb4015e67-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f0bb4015e67-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr67f0bb4015e67-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 38216,
		&#039;title&#039; =&gt; &#039;Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Telegraph&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;
&lt;br /&gt;
On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;
&lt;br /&gt;
The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;
&lt;br /&gt;
In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Telegraph, 9 January, 2019, https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 4686347,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 38216,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Reserve Bank of India,Reserve Bank of India (RBI),fiscal deficit&#039;,
	&#039;metaDesc&#039; =&gt; &#039;
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Telegraph&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;&lt;br /&gt;On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;&lt;br /&gt;The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;&lt;br /&gt;In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;&lt;br /&gt;Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot; title=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 38216,
	&#039;title&#039; =&gt; &#039;Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Telegraph&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;
&lt;br /&gt;
On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;
&lt;br /&gt;
The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;
&lt;br /&gt;
In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Telegraph, 9 January, 2019, https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 4686347,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {},
		(int) 2 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 38216
$metaTitle = &#039;LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;
$metaKeywords = &#039;Reserve Bank of India,Reserve Bank of India (RBI),fiscal deficit&#039;
$metaDesc = &#039;
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-The Telegraph&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;&lt;br /&gt;On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;&lt;br /&gt;The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;&lt;br /&gt;In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;&lt;br /&gt;Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot; title=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik | Im4change.org</title>
    <meta name="description" content="
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <div align="justify">-The Telegraph<br /><br /><em>Our public discourse should be informed by economic theory that is free of obfuscations<br /></em><br />For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&rsquo;s reserves should be drawn down by the government to finance its expenditure.<br /><br />On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.<br /><br />The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.<br /><br />In fact, however, the argument for running down the RBI&rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.<br /><br />Please <a href="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw" title="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw">click here</a> to read more. <br /></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$reasonPhrase = 'OK'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitStatusLine() - CORE/src/Http/ResponseEmitter.php, line 148
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 54
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
Code Context
                    $value

                ), $first);

                $first = false;
$response = object(Cake\Http\Response) {

	'status' => (int) 200,
	'contentType' => 'text/html',
	'headers' => [
		'Content-Type' => [
			[maximum depth reached]
		]
	],
	'file' => null,
	'fileRange' => [],
	'cookies' => object(Cake\Http\Cookie\CookieCollection) {},
	'cacheDirectives' => [],
	'body' => '<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN"
        "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f0bb4015e67-trace').style.display = (document.getElementById('cakeErr67f0bb4015e67-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f0bb4015e67-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f0bb4015e67-code').style.display = (document.getElementById('cakeErr67f0bb4015e67-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f0bb4015e67-context').style.display = (document.getElementById('cakeErr67f0bb4015e67-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f0bb4015e67-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
</span></span></code>
<span class="code-highlight"><code><span style="color: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&lt;link&nbsp;rel="canonical"&nbsp;href="<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">);&nbsp;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?&gt;&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">category</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">slug</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>/<span style="color: #0000BB">&lt;?php&nbsp;</span><span style="color: #007700">echo&nbsp;</span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-&gt;</span><span style="color: #0000BB">seo_url</span><span style="color: #007700">;&nbsp;</span><span style="color: #0000BB">?&gt;</span>.html"/&gt;
</span></code></span>
<code><span style="color: #000000"><span style="color: #0000BB">&nbsp;&nbsp;&nbsp;&nbsp;</span><span style="color: #007700">&lt;</span><span style="color: #0000BB">meta&nbsp;http</span><span style="color: #007700">-</span><span style="color: #0000BB">equiv</span><span style="color: #007700">=</span><span style="color: #DD0000">"Content-Type"&nbsp;</span><span style="color: #0000BB">content</span><span style="color: #007700">=</span><span style="color: #DD0000">"text/html;&nbsp;charset=utf-8"</span><span style="color: #007700">/&gt;
</span></span></code></pre><pre id="cakeErr67f0bb4015e67-context" class="cake-context" style="display: none;">$viewFile = &#039;/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp&#039;
$dataForView = [
	&#039;article_current&#039; =&gt; object(App\Model\Entity\Article) {

		&#039;id&#039; =&gt; (int) 38216,
		&#039;title&#039; =&gt; &#039;Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Telegraph&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;
&lt;br /&gt;
On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;
&lt;br /&gt;
The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;
&lt;br /&gt;
In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Telegraph, 9 January, 2019, https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr&#039;,
		&#039;article_img&#039; =&gt; &#039;&#039;,
		&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
		&#039;status&#039; =&gt; (int) 1,
		&#039;show_on_home&#039; =&gt; (int) 1,
		&#039;lang&#039; =&gt; &#039;EN&#039;,
		&#039;category_id&#039; =&gt; (int) 16,
		&#039;tag_keyword&#039; =&gt; &#039;&#039;,
		&#039;seo_url&#039; =&gt; &#039;using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347&#039;,
		&#039;meta_title&#039; =&gt; null,
		&#039;meta_keywords&#039; =&gt; null,
		&#039;meta_description&#039; =&gt; null,
		&#039;noindex&#039; =&gt; (int) 0,
		&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
		&#039;most_visit_section_id&#039; =&gt; null,
		&#039;article_big_img&#039; =&gt; null,
		&#039;liveid&#039; =&gt; (int) 4686347,
		&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
		&#039;edate&#039; =&gt; &#039;&#039;,
		&#039;tags&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
		&#039;[new]&#039; =&gt; false,
		&#039;[accessible]&#039; =&gt; [
			[maximum depth reached]
		],
		&#039;[dirty]&#039; =&gt; [[maximum depth reached]],
		&#039;[original]&#039; =&gt; [[maximum depth reached]],
		&#039;[virtual]&#039; =&gt; [[maximum depth reached]],
		&#039;[hasErrors]&#039; =&gt; false,
		&#039;[errors]&#039; =&gt; [[maximum depth reached]],
		&#039;[invalid]&#039; =&gt; [[maximum depth reached]],
		&#039;[repository]&#039; =&gt; &#039;Articles&#039;
	
	},
	&#039;articleid&#039; =&gt; (int) 38216,
	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;Reserve Bank of India,Reserve Bank of India (RBI),fiscal deficit&#039;,
	&#039;metaDesc&#039; =&gt; &#039;
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Telegraph&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;&lt;br /&gt;On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;&lt;br /&gt;The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;&lt;br /&gt;In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;&lt;br /&gt;Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot; title=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
	&#039;adminprix&#039; =&gt; &#039;admin&#039;
]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 38216,
	&#039;title&#039; =&gt; &#039;Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Telegraph&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;
&lt;br /&gt;
On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;
&lt;br /&gt;
The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;
&lt;br /&gt;
In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;
&lt;br /&gt;
Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Telegraph, 9 January, 2019, https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr&#039;,
	&#039;article_img&#039; =&gt; &#039;&#039;,
	&#039;article_img_thumb&#039; =&gt; &#039;&#039;,
	&#039;status&#039; =&gt; (int) 1,
	&#039;show_on_home&#039; =&gt; (int) 1,
	&#039;lang&#039; =&gt; &#039;EN&#039;,
	&#039;category_id&#039; =&gt; (int) 16,
	&#039;tag_keyword&#039; =&gt; &#039;&#039;,
	&#039;seo_url&#039; =&gt; &#039;using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347&#039;,
	&#039;meta_title&#039; =&gt; null,
	&#039;meta_keywords&#039; =&gt; null,
	&#039;meta_description&#039; =&gt; null,
	&#039;noindex&#039; =&gt; (int) 0,
	&#039;publish_date&#039; =&gt; object(Cake\I18n\FrozenDate) {},
	&#039;most_visit_section_id&#039; =&gt; null,
	&#039;article_big_img&#039; =&gt; null,
	&#039;liveid&#039; =&gt; (int) 4686347,
	&#039;created&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;modified&#039; =&gt; object(Cake\I18n\FrozenTime) {},
	&#039;edate&#039; =&gt; &#039;&#039;,
	&#039;tags&#039; =&gt; [
		(int) 0 =&gt; object(Cake\ORM\Entity) {},
		(int) 1 =&gt; object(Cake\ORM\Entity) {},
		(int) 2 =&gt; object(Cake\ORM\Entity) {}
	],
	&#039;category&#039; =&gt; object(App\Model\Entity\Category) {},
	&#039;[new]&#039; =&gt; false,
	&#039;[accessible]&#039; =&gt; [
		&#039;*&#039; =&gt; true,
		&#039;id&#039; =&gt; false
	],
	&#039;[dirty]&#039; =&gt; [],
	&#039;[original]&#039; =&gt; [],
	&#039;[virtual]&#039; =&gt; [],
	&#039;[hasErrors]&#039; =&gt; false,
	&#039;[errors]&#039; =&gt; [],
	&#039;[invalid]&#039; =&gt; [],
	&#039;[repository]&#039; =&gt; &#039;Articles&#039;

}
$articleid = (int) 38216
$metaTitle = &#039;LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik&#039;
$metaKeywords = &#039;Reserve Bank of India,Reserve Bank of India (RBI),fiscal deficit&#039;
$metaDesc = &#039;
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-The Telegraph&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Our public discourse should be informed by economic theory that is free of obfuscations&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&amp;rsquo;s reserves should be drawn down by the government to finance its expenditure.&lt;br /&gt;&lt;br /&gt;On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&amp;rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&amp;rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.&lt;br /&gt;&lt;br /&gt;The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.&lt;br /&gt;&lt;br /&gt;In fact, however, the argument for running down the RBI&amp;rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&amp;rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&amp;rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.&lt;br /&gt;&lt;br /&gt;Please &lt;a href=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot; title=&quot;https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw&quot;&gt;click here&lt;/a&gt; to read more. &lt;br /&gt;&lt;/div&gt;&#039;
$lang = &#039;English&#039;
$SITE_URL = &#039;https://im4change.in/&#039;
$site_title = &#039;im4change&#039;
$adminprix = &#039;admin&#039;</pre><pre class="stack-trace">include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51</pre></div></pre>latest-news-updates/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347.html"/>
    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
    <link href="https://im4change.in/css/control.css" rel="stylesheet" type="text/css"
          media="all"/>
    <title>LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik | Im4change.org</title>
    <meta name="description" content="
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of..."/>
    <script src="https://im4change.in/js/jquery-1.10.2.js"></script>
    <script type="text/javascript" src="https://im4change.in/js/jquery-migrate.min.js"></script>
    <script language="javascript" type="text/javascript">

        $(document).ready(function () {
            var img = $("img")[0]; // Get my img elem
            var pic_real_width, pic_real_height;
            $("<img/>") // Make in memory copy of image to avoid css issues
                .attr("src", $(img).attr("src"))
                .load(function () {
                    pic_real_width = this.width;   // Note: $(this).width() will not
                    pic_real_height = this.height; // work for in memory images.
                });
        });
    </script>
    <style type="text/css">
        @media screen {
            div.divFooter {
                display: block;
            }
        }

        @media print {
            .printbutton {
                display: none !important;
            }
        }
    </style>
</head>
<body>
<table cellpadding="0" cellspacing="0" border="0" width="98%" align="center">
    <tr>
        <td class="top_bg">
            <div class="divFooter">
                <img src="https://im4change.in/images/logo1.jpg" height="59" border="0"
                     alt="Resource centre on India's rural distress" style="padding-top:14px;"/>
            </div>

        </td>
    </tr>
    <tr>
        <td id="topspace">&nbsp;</td>
    </tr>

    <tr id="topspace">
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td height="50" style="border-bottom:1px solid #000; padding-top:10px;" class="printbutton">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>

    <tr>
        <td width="100%">
            <h1 class="news_headlines" style="font-style:normal">
                <strong>Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik</strong></h1>
        </td>
    </tr>
    <tr>
        <td width="100%" style="font-family:Arial, 'Segoe Script', 'Segoe UI', sans-serif, serif"><font size="3">
                <div align="justify">-The Telegraph<br /><br /><em>Our public discourse should be informed by economic theory that is free of obfuscations<br /></em><br />For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&rsquo;s reserves should be drawn down by the government to finance its expenditure.<br /><br />On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.<br /><br />The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.<br /><br />In fact, however, the argument for running down the RBI&rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.<br /><br />Please <a href="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw" title="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw">click here</a> to read more. <br /></div>               </font>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
    </tr>

    <tr>
        <td height="50" style="border-top:1px solid #000; border-bottom:1px solid #000;padding-top:10px;">
            <form><input type="button" value=" Print this page "
                         onclick="window.print();return false;"/></form>
        </td>
    </tr>
</table></body>
</html>'

}
$cookies = []
$values = [
	(int) 0 => 'text/html; charset=UTF-8'
]
$name = 'Content-Type'
$first = true
$value = 'text/html; charset=UTF-8'
header - [internal], line ??
Cake\Http\ResponseEmitter::emitHeaders() - CORE/src/Http/ResponseEmitter.php, line 181
Cake\Http\ResponseEmitter::emit() - CORE/src/Http/ResponseEmitter.php, line 55
Cake\Http\Server::emit() - CORE/src/Http/Server.php, line 141
[main] - ROOT/webroot/index.php, line 39

<head>

    <link rel="canonical" href="<?php echo Configure::read('SITE_URL'); ?><?php echo $urlPrefix;?><?php echo $article_current->category->slug; ?>/<?php echo $article_current->seo_url; ?>.html"/>

    <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>

$viewFile = '/home/brlfuser/public_html/src/Template/Layout/printlayout.ctp'
$dataForView = [
	'article_current' => object(App\Model\Entity\Article) {

		'id' => (int) 38216,
		'title' => 'Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik',
		'subheading' => '',
		'description' => '<div align="justify">
-The Telegraph<br />
<br />
<em>Our public discourse should be informed by economic theory that is free of obfuscations<br />
</em><br />
For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&rsquo;s reserves should be drawn down by the government to finance its expenditure.<br />
<br />
On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.<br />
<br />
The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.<br />
<br />
In fact, however, the argument for running down the RBI&rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.<br />
<br />
Please <a href="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw">click here</a> to read more. <br />
</div>',
		'credit_writer' => 'The Telegraph, 9 January, 2019, https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr',
		'article_img' => '',
		'article_img_thumb' => '',
		'status' => (int) 1,
		'show_on_home' => (int) 1,
		'lang' => 'EN',
		'category_id' => (int) 16,
		'tag_keyword' => '',
		'seo_url' => 'using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347',
		'meta_title' => null,
		'meta_keywords' => null,
		'meta_description' => null,
		'noindex' => (int) 0,
		'publish_date' => object(Cake\I18n\FrozenDate) {},
		'most_visit_section_id' => null,
		'article_big_img' => null,
		'liveid' => (int) 4686347,
		'created' => object(Cake\I18n\FrozenTime) {},
		'modified' => object(Cake\I18n\FrozenTime) {},
		'edate' => '',
		'tags' => [
			[maximum depth reached]
		],
		'category' => object(App\Model\Entity\Category) {},
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[hasErrors]' => false,
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'Articles'
	
	},
	'articleid' => (int) 38216,
	'metaTitle' => 'LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik',
	'metaKeywords' => 'Reserve Bank of India,Reserve Bank of India (RBI),fiscal deficit',
	'metaDesc' => '
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of...',
	'disp' => '<div align="justify">-The Telegraph<br /><br /><em>Our public discourse should be informed by economic theory that is free of obfuscations<br /></em><br />For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&rsquo;s reserves should be drawn down by the government to finance its expenditure.<br /><br />On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.<br /><br />The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.<br /><br />In fact, however, the argument for running down the RBI&rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.<br /><br />Please <a href="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw" title="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw">click here</a> to read more. <br /></div>',
	'lang' => 'English',
	'SITE_URL' => 'https://im4change.in/',
	'site_title' => 'im4change',
	'adminprix' => 'admin'
]
$article_current = object(App\Model\Entity\Article) {

	'id' => (int) 38216,
	'title' => 'Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik',
	'subheading' => '',
	'description' => '<div align="justify">
-The Telegraph<br />
<br />
<em>Our public discourse should be informed by economic theory that is free of obfuscations<br />
</em><br />
For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&rsquo;s reserves should be drawn down by the government to finance its expenditure.<br />
<br />
On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.<br />
<br />
The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.<br />
<br />
In fact, however, the argument for running down the RBI&rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.<br />
<br />
Please <a href="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw">click here</a> to read more. <br />
</div>',
	'credit_writer' => 'The Telegraph, 9 January, 2019, https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr',
	'article_img' => '',
	'article_img_thumb' => '',
	'status' => (int) 1,
	'show_on_home' => (int) 1,
	'lang' => 'EN',
	'category_id' => (int) 16,
	'tag_keyword' => '',
	'seo_url' => 'using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate-prabhat-patnaik-4686347',
	'meta_title' => null,
	'meta_keywords' => null,
	'meta_description' => null,
	'noindex' => (int) 0,
	'publish_date' => object(Cake\I18n\FrozenDate) {},
	'most_visit_section_id' => null,
	'article_big_img' => null,
	'liveid' => (int) 4686347,
	'created' => object(Cake\I18n\FrozenTime) {},
	'modified' => object(Cake\I18n\FrozenTime) {},
	'edate' => '',
	'tags' => [
		(int) 0 => object(Cake\ORM\Entity) {},
		(int) 1 => object(Cake\ORM\Entity) {},
		(int) 2 => object(Cake\ORM\Entity) {}
	],
	'category' => object(App\Model\Entity\Category) {},
	'[new]' => false,
	'[accessible]' => [
		'*' => true,
		'id' => false
	],
	'[dirty]' => [],
	'[original]' => [],
	'[virtual]' => [],
	'[hasErrors]' => false,
	'[errors]' => [],
	'[invalid]' => [],
	'[repository]' => 'Articles'

}
$articleid = (int) 38216
$metaTitle = 'LATEST NEWS UPDATES | Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik'
$metaKeywords = 'Reserve Bank of India,Reserve Bank of India (RBI),fiscal deficit'
$metaDesc = '
-The Telegraph

Our public discourse should be informed by economic theory that is free of obfuscations

For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of...'
$disp = '<div align="justify">-The Telegraph<br /><br /><em>Our public discourse should be informed by economic theory that is free of obfuscations<br /></em><br />For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India&rsquo;s reserves should be drawn down by the government to finance its expenditure.<br /><br />On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI&rsquo;s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI&rsquo;s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable.<br /><br />The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year.<br /><br />In fact, however, the argument for running down the RBI&rsquo;s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI&rsquo;s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI&rsquo;s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure.<br /><br />Please <a href="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw" title="https://www.telegraphindia.com/opinion/using-rbi-reserves-to-fund-government-expenditure-a-misleading-debate/cid/1681194?fbclid=IwAR0t5-oUgn04wpM76DMYs7zugkCICBSnbkNrqr3c_5L6zqlqyCvm2Bf7Epw">click here</a> to read more. <br /></div>'
$lang = 'English'
$SITE_URL = 'https://im4change.in/'
$site_title = 'im4change'
$adminprix = 'admin'

include - APP/Template/Layout/printlayout.ctp, line 8
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1413
Cake\View\View::_render() - CORE/src/View/View.php, line 1374
Cake\View\View::renderLayout() - CORE/src/View/View.php, line 927
Cake\View\View::render() - CORE/src/View/View.php, line 885
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 791
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 126
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51

Using RBI reserves to fund government expenditure: A misleading debate -Prabhat Patnaik

-The Telegraph Our public discourse should be informed by economic theory that is free of obfuscations For some time now there has been a debate in the country that is as esoteric as it is misleading, namely whether the Reserve Bank of India’s reserves should be drawn down by the government to finance its expenditure. On the one side, the argument is that if the government has to undertake extra expenditure, then, other things remaining unchanged, it would increase the fiscal deficit, while financing expenditure by running down the RBI’s reserves entails no such increase in fiscal deficit; since an increase in fiscal deficit is supposed to be bad for the economy, it follows that financing larger expenditure by running down the RBI’s reserves, which are in any case very high relative to its assets, higher than in many other countries, is socially desirable. The argument advanced against this does not question this proposition at a theoretical level. It asserts instead that the government should not be undermining the autonomy of the RBI, using it as a tool for appeasing the electorate through larger spending in an election year. In fact, however, the argument for running down the RBI’s reserves is theoretically erroneous for two reasons: one, there is no difference whatsoever in terms of macroeconomic impact between increasing the fiscal deficit and running down the RBI’s reserves; a proper definition of the fiscal deficit should actually include the running down of the RBI’s reserves as well. Two, an increase in government expenditure financed by a larger fiscal deficit is not always a bad thing; indeed, in many situations, like India today, a deficit-financed increase in expenditure is better than no increase in expenditure, though of course it is worse than a tax-financed increase in government expenditure. Please click here to read more.