The Forum of Free Enterprise is a non-political organization founded in 1956 by A. D. Shroff and has been established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet titled “Public Finance and Fiscal Discipline in India” was published on December 15, 1990, and was authored by S.LN. Simha. The author makes a strong case for the exercise of fiscal discipline on parts of the governments, central banks and public sector companies. He argues that over the centuries, the government’s obligation towards its citizens has widened considerably. He further states that since the resources are raised by governments from the public through taxes, which constitute a compulsory transfer of funds to the government, it is fair to suggest that the expenditure which government incurs should be as low as possible. Significant care should be taken to ensure judicious spending. He highlights that the classical theory of public finance is that the current account should have some surplus, which should be used for capital expenditure purposes. Till some years ago this principle was followed nearly everywhere, but now financial indiscipline has set in and current account deficits are fairly common which has resulted in an unproductive borrowing by the government. He emphasizes the importance of cutting down expenditure and keeping down the budgetary deficit to very modest dimensions. He stresses the need for both of them to go together.