A fast-growing economy is able to generate surpluses which are needed for job creation and sustenance of social safety nets. Comment.
Published: June 8, 2019
The numbers which depict our national income are in contrast to growth. The primary aim of the new government should be to spur the economic growth as it is not possible to have any surpluses which are a must for plugging our socio-economic problems and also give many social safety buffers. The government has to increase the public investment which largely happens outside the Budget and bulk of which is generated by the public sector enterprises. A robust investment by the public sector also helps increase private investment. The government also needs to acknowledge and plug the gaps which are faced by different industries. Another notable issue is of the NPAs which has added to the stress of the banks. This can be worrying as the banks have become the prime source of working capital and long-term goals. The inability of the first term of the Modi government to spur the growth in jobs has been alarming. Thus, reforms and that so in the right direction. So in addition to easing the liquidity, the government also needs to keep a strict vigil on the monetary policy.