Question

why did Indian government become unsustainable in 1991?​

Answer 1

Answer:

Government expenditure began to exceed its rev-enue by very large margins. This was the main cause to make the government unsustainable

Answer 2

Answer:

Government expenditure began to exceed its rev-enue by very large margins. This was the main cause to make the government unsustainable

The balance of payments situation came to the verge of collapse in 1991, mainly because the current account deficits were financed by borrowings from abroad. The economic situation of India was critical; the government was close to default. ... India was in the need of an International Monetary Fund (IMF) bailout