Showing posts with label fiscal deficit. Show all posts
Showing posts with label fiscal deficit. Show all posts

Saturday, February 23, 2013

Abandoning the Right to Food

EPW has a important article by (co-authored by Harsh Mander, a member of the National Advisory Council) on the "Abandoning the Right to Food" by the Parliamentary Standing Committee.

Just one quote:

According to media reports, the government plans to pass the National Food Security Bill in the coming budget session of Parliament after incorporating most of the recommendations of the standing committee. If this is allowed to happen, India will lose a historic opportunity to end hunger and malnutrition in the country. If a state like Chhattisgarh can legislate a comprehensive Food Security Act, there is no reason why the central government – which has far greater resources at its disposal – cannot do the same for the entire country.

Sunday, January 13, 2013

Officials hope that social and infrastructure spending is lower

This is literally true. In an article upbeat on meeting the fiscal deficit target of 5.3%, there is a line saying that

"Besides, officials said, hopes are high about huge savings on the Plan expenditure front, where a number of departments and other ministries have not been able to utilize allocations for social and infrastructure sectors" 

Not utilizing allocations on social and infrastructure sectors is a good thing? Even the business leaders and respected economic commentators (quoting the RBI) identify infrastructure as a key focus area.

Not to mention that social sectors require a lot of attention in India with spending on health and education among the lowest in the world as a percentage of GDP.

This is a case of deficit-fetishism. Fiscal deficit is not an end in itself. There is nothing good in this story.