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unit-5-monetary-and-financial-resources

Unit-5 Monetary and Financial Resources

This unit discusses these aspects which have a crucial bearing on the flow of monetary and financial resources needed for the development of the economy.

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In which sector of the economy, public or private, larger share of investment has taken place?


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Learning Pundits Content Team

Written on Jun 26, 2019 3:45:21 PM

The gross capital formation in the public sector has increased from Rs.294 crore in 1950-51 to Rs.3,21,753 crore in 2006-07 maintaining an upward trend throughout the five decades period. The gross capital formation in the Private Sector too has been rising. During the period 1950-51 to 2006-07, it went up from Rs.743 crore to Rs.11,20,851 crore. Leaving out the year 1950-51, during the period 1961-81, the gap in the relative shares of GCF between the public and the private sector was marginal. This difference began accentuating from 1990-91 and widened steeply to reach the 1950- 51 level by the year 2000-01.

This difference further increased by the year 2006-07. Evidently, public sector investment was a low key affair in the post-reform phase.