Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | A Govt Unequal to the Task as Economy Sinks -Prabhat Patnaik

A Govt Unequal to the Task as Economy Sinks -Prabhat Patnaik

Share this article Share this article
published Published on Sep 19, 2020   modified Modified on Sep 20, 2020

-Newsclick.in

The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.

A striking aspect of the 24% decline in India’s GDP in the first quarter of 2020-21 compared with the first quarter of the last fiscal year is the decline by 10.3% in public administration, defence and other public services. This is a sector where the GDP (gross domestic product) is estimated not by the “output” of the sector but by the government expenditure incurred under these heads. The decline in the GDP originating in this sector, therefore, means a decline in public expenditure.

This is surprising for two reasons: first, it shows that government expenditure, instead of being “counter-contractionary” has been “pro-contractionary”. Second, during the lockdown imposed due to the pandemic, one would expect government spending on healthcare to go up, and thereby, raise the overall state expenditure instead of the fall we actually observe.

When there is a lockdown and output contracts, it is incumbent on the government to increase its expenditure. The rise in expenditure reduces the degree of contraction; it puts purchasing power in the hands of people, so that many of them can maintain their consumption without getting into debt.

Please click here to read more.


Newsclick.in, 19 September, 2020, https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close