Why the Budget should focus more on jobs & demand creation

Fiscal consolidation and discipline vs spending more to boost demand, these are the broad choices for the Budget. Economist Radhika Pandey and Deputy Editor TCA Sharad Raghavan weigh the pros and cons of both approaches in #MacroSutra.
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[@prakashraghunathan2685]

Thankyou TCA sharad sir and Radhika madam.

[@Pinoy342]

Only for Macrosutra I've subscribed The Print. No channel talks in depth about economy

[@tarunrao9643]

Id suggest checking out the bond economist too though his upload schedule is unpredictable

[@user-ng5xr2ju2z]

Hi. Please do a macrosutra about the results from KLEMS database. Also thanks for taking my question.

[@dominicdmello7531]

No discussion on improving employment in rural areas.

[@jayantdeshpande6081]

Good evening both of you but how do you think the development will create more jobs

[@harisundar8698]

Easily explained, another wonderful episode. Also, where does disinvestment stand here as banks and other psu’s are performing well ? What can the govt do to increase formal employment opportunities?

[@sachinik]

Thanks for such a knowledge enhancing discussion. 👏

[@subhrangsudutta8029]

Thanks, prior to Union Budget, this episode certainly enhanced our knowledge with such indepth discussion. Now, let us see tomorrow's outcomes of All Party meeting which also enligth us on Oppositions view. 🙏🙏

[@arkabanerjee1627]

Excellent 👍👍

[@harisundar8698]

Employment linked incentives is certainly an interesting possibility. But we need a census that includes skill census to plan any such ELI. Census, anyone?

[@kamalgupta7950]

Pls inform whether budget deficit is equal to government borrowings by issuing bonds.

[@nvspraneeth901]

What does stick to fiscal prudence mean? When the reports says that this govt has taken debt which is equal to previous all govts combined

[@rajx7120]

Debt increased majorly after pandemic. So, that has to paid back. Fiscal deficit was less than 3.5% pre-pandemic, but became 6% post-pandemic. That has to be reduced. Furthermore, capital expenditure creates growth in the long run to recover today's debt. Whereas, revenue expenditure creates short-term relief, while not creating any long-term growth.

[@moonbalancedd]

Your statement tells everyone you do not understand economics. I have no interest in teaching you the role of debt in capex and development which should be covered in school. China has 4 times the debt. Even a tiny hong kong has 3 times the debt. Singapore which is 1/10 the economy, has 3 times the debt. India is not even the top 25 countries in terms of total debt or top 100 as % of gdp. Not wasting more time teaching sense to the senseless.

[@udayakumarmeivelu4736]

Capital expenses like Metro in Chennai which generate hardly 0.2 % ROI are never going to be recoverd. This could have been invested in creating satellite city like GIFT CITY making life of everyone better and financially prudent. Most Capital works in progress in States are white elephants. Future generation is going to bear the burden and the present tax payers are forced to pay for these type of expenses.

[@rajx7120]

@@udayakumarmeivelu4736 The metro might be running at a loss, but there are savings in other forms. Many commuters are saved from predatory autowallahs who overcharge for short distance, and avoid petrol taxes, that one has to pay. Plus, oil import bill is also saved. Money spent on owning and maintaining a vehicle can be saved. Satellite cities are also needed in parallel, to reduce congestion. Eventually, people will move out to satellite cities, and main city will only have offices.

[@ankushmukherjee3219]

You should see debt to gdp ratio not overall debt. Ratio is very much in control, and govt is doing good. Fiscal prudence means basically govt living beyond its spending means, and not borrowing money excessively. If you borrow excessively in long term it has serious repurcussions.

[@sarabjits7679]

GDP growing at 7 to 8 and pvt consp by 4 : so delta is adding to where

[@A4Aqua]

Is the dividend money printed by RBI? No. They looted it from banks, who in turn looted it from everyone who have bank accounts. This is illegal indirect -indirect taxation.

[@rajx7120]

No. These dividends are the interest received on foreign bond holdings.

[@ankushmukherjee3219]

Lol no.

[@ravindrapratapsinghshekhaw4562]

2018 - NK Singh Committee report - goal post of FRBM shifted from revenue deficit to debt to gdp ratio. From 2009 - target of 3% gdp has not been met. FRBM imp as it caters to bond market and healthy cresit rating, fiscal discipline and macroeconomic stability Arvind Subramanian favours - primary surplus , because at least borrowing for non-interest payments - like investment in new infra etc