A developing low-cost needs to tap all possible possessions to muster required fiscal possessions for the implementation of its developmental plans. Civic borrowing is one of the major instruments of resource mobilization which diverts the flow of possessions into right channels, especially in case of developing economies, as they lack possessions required for development. The study of civic responsibility is not of recent origin. Therefore, India after independence decided to go for fiscal development that was based on centralized planning which assigned a great role to civic responsibility. Shoup (2006) defines Civic Responsibility or government borrowings as “the receipt from the sale of fiscal instruments by the government to individuals or firms in the private sector to induce the private sector to release manpower and real possessions; and to finance the purchase of those possessions or to make Civic responsibility may be acquired from both internal as well as external sources. An internal responsibility involves only transfer of wealth within the borrowing community. In case of external loans, it involves firstly, a transfer of wealth from the lending to the borrowing community, when the loan is raised and secondly, a transfer in the reverse direction, when the interest on principal is repaid (Meade, 1958). Civic responsibility includes domestic and external liabilities excluding small savings and total liabilities. Internal responsibility includes market loans and bonds, treasury bills and special securities issued to RBI etc. Other liabilities include Small Savings, Provident Funds, Reserve Funds and Deposits.