June 04, 2019

Ten steps to maximise growth

In the New Indian Express, Shankkar Aiyar suggests ten steps to boost the economy and revive the virtuous cycle of consumption, growth, investment, and jobs. Excerpts:

 

"Retire Public Debt: The good news is that the panel of Bimal Jalan and Rakesh Mohan finds merit in RBI releasing some of its reserves. The money, estimated at between Rs 1 lakh crore and Rs 3 lakh crore, resources garnered via land monetisation and NIIF bonds should be used to retire debt, bring down borrowings and trim the cost of capital that hurts the competitiveness of investments in India.  The interim budget for 2019- 20 places the cost of interest payments at over Rs 6.65 lakh crore—that is, Rs 1,822 crore a day. This pretend-and-extend, borrow-and-spend model is not sustainable...

 

Decentralise Decision-making: Finally, India needs a commission to decentralise a large part of governance. There is no justification for a number of ministries at the Centre. The confounding confusion created by the 42nd Amendment must be cleared—by reverting to the states the power to formulate policies on critical issues of human development, urbanisation, infrastructure and investment. This colonisation of states by the Centre must end. The massive mandate affords and demands the revival and implementation of the promise of minimum government, maximum governance."

 

Read the whole article here.

Topic : State Capacity / In : OP-EDS
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