February 19, 2016

A dream budget for India this year

In this IBN Live article, Shamika Ravi, Visiting Fellow at IDFC Institute, comes up with a dream budget for India highlighting broad budget announcements that would keep India firmly on the path to equitable growth over the next hundred years.

 

"Banking reforms which bring about fundamental structural changes within the sector. Let some of the very sick public sector banks, currently expecting life support, quickly succumb. This is in the long term interest of the health of our economy. In the short run, saving these badly run banks will affect most new schemes which are aimed at kick-starting an entrepreneurial revolution within India...

Health reforms that will not only raise the overall health spending in the country, but significantly realign the expenditures such that the government spends approximately 70% of resources on primary care and the remaining on secondary and tertiary care. Mis-management and poor governance are key to explaining the difference between states that have innovated and used their NHM budget efficiently with those that have not. Creating space for more autonomous corporations for drug procurement and delivery of care would be most helpful...

Reforms in the higher education sector is fundamental if India is to realize its ambition of becoming a “Human resource capital of the world”. We would have nearly succeeded in our mission if by “HR capital” we mean a factory supplier of engineers and doctors to the world...

To tackle the growing agrarian distress, the budget must look into a few critical measures. India needs to have a robust crop insurance policy but it is also important to learn from the mistakes of many countries before us...Beyond insurance, it is fundamental that we lay down the foundations for sustainable agricultural growth in the future. Institutions that connect farmers to markets – for both inputs and selling outputs- need to be encouraged...The case of farmer suicides needs attention, though it has been improving over last 5 years. The policy interventions, however, need to move beyond debt. Research has shown that health concerns are a leading cause, therefore prioritizing rural health infrastructure can be a long term solution...

Skilling as a mission is important, particularly given the poor performance of our education system. Despite high enrolment, the quality of our students has been deteriorating over last several years. To plug the gap in skill, the government launched the Skill India mission... The lessons from the long struggle and failures of NSDC must be to make skilling more bottoms up...

Setting up of the Third Administrative Reforms Commission with a hard deadline of 6 months to make recommendations. Members of this Commission must mostly include people from outside of the bureaucracy, serving or retired, to avoid conflict of interest."

 

Read the full article here.

Topic : Transitions / In : OP-EDS
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