Overall, the fiscal reform process spanning both the central and state governments over the last 15 years has been truly wide ranging.
Monetary policy Over the 1970s and 1980s, monetary policy, as we know it, had become almost non-existent: with a system of credit allocation, administered and different interest rates for different purposes; automatic monetization of fiscal deficits; and financial repression through pre-emption of banks’ resources. Hence a number of measures had to be taken.