Bimal Jalan endorses higher deficit to bolster Indian growth - The Hindu

Bimal Jalan endorses higher deficit to bolster Indian growth - The Hindu

My VIEW:

India was late in
introducing even the concept of purchase power parity while making projections
and comparisons and has been very conservative in assessing the country’s net
worth. All these allowed developed countries to show India in poor light. Dr
Jalan’s observation that ‘nothing should be cast in stone’(referring to deficit
projections) should be viewed in this context.
While infrastructure and social
security needs besides sectors like defence cannot continue to be neglected,
and the focus being shifted to social security projects like employment
guarantee scheme, universal education, expansion of rural health and financial
inclusion and rightly so after the correct realisation that trust in ‘trickling
effect of growth’ has to give way to ensuring distributive justice, it will be
a herculean  task for the present and
future governments to make up for the harm caused by several measures like
dismantling of pension system in the organised sector(except defence) taken in
the name of reforms, under pressure.
A realistic reassessment
of GDP may help improve the share of expenditure in priority areas. Perhaps,
from the budget angle, there is need to be professional in foregoing revenues
and improving collection of taxes levied.
M
G Warrier,
Thiruvananthapuram



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