This has had a significant deleterious impact on the States’ social expenditures including on education and health. Developmental expenditure as a percentage of GDP had declined from 9.92 per cent during 1990-95 to 8.97 per cent during 1995-2000.
Moreover, in the 1930s, the authorities could not come up with effective policy measures in response to successive bank failures and the financial system became extremely unstable, leading to a situation in which firms facing funding difficulties rushed to sell off their own products.