Is Indian Government lying to the world about its fiscal condition ?


Last week , i was in Delhi and met up with two friends who gave me shocking news .

One friend works as a vendor to Ministry of Defence ( MOD ). He informed that the MOD is not in a position to pay for the orders already placed as there is no money available .Always, MOD was flush with funds , and this is happening for the first time in history

Also, a senior official of the Ministry of Health informed that , they are planning with money ! This means that there is no money with the ministry but meetings with regards to planning are going on

Corroborating these two meetings with RBI’s news ( dated 5th Nov , 2011)  that , RBI  cannot pay interest on CRR. I am afraid if India has already fallen off the fiscal cliff !

News web link is http://articles.economictimes.indiatimes.com/2012-11-05/news/34925243_1_reserve-ratio-percentage-of-deposits-banks-finance-ministry

By the way, Indian Government is borrowing at the rate of 1.5 lac rupees per second to run the Government this year . Nothing more to write . I believe that the Government owes an explanation