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<p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p>
<p style="text-align:justify">A striking aspect of the 24% decline in India&rsquo;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 &ldquo;output&rdquo; 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.</p>
<p style="text-align:justify">This is surprising for two reasons: first, it shows that government expenditure, instead of being &ldquo;counter-contractionary&rdquo; has been &ldquo;pro-contractionary&rdquo;. 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.</p>
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<p style="text-align:justify">Please <a href="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ">click here</a> to read more.</p>
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<strong>A Govt Unequal to the Task as Economy Sinks -Prabhat Patnaik</strong></h1>
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<p style="text-align:justify">-Newsclick.in</p><p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">Please <a href="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ" title="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ">click here</a> to read more.</p> </font>
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<span class="code-highlight"><code><span style="color: #000000"> <link rel="canonical" href="<span style="color: #0000BB"><?php </span><span style="color: #007700">echo </span><span style="color: #0000BB">Configure</span><span style="color: #007700">::</span><span style="color: #0000BB">read</span><span style="color: #007700">(</span><span style="color: #DD0000">'SITE_URL'</span><span style="color: #007700">); </span><span style="color: #0000BB">?><?php </span><span style="color: #007700">echo </span><span style="color: #0000BB">$urlPrefix</span><span style="color: #007700">;</span><span style="color: #0000BB">?><?php </span><span style="color: #007700">echo </span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-></span><span style="color: #0000BB">category</span><span style="color: #007700">-></span><span style="color: #0000BB">slug</span><span style="color: #007700">; </span><span style="color: #0000BB">?></span>/<span style="color: #0000BB"><?php </span><span style="color: #007700">echo </span><span style="color: #0000BB">$article_current</span><span style="color: #007700">-></span><span style="color: #0000BB">seo_url</span><span style="color: #007700">; </span><span style="color: #0000BB">?></span>.html"/>
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<p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p>
<p style="text-align:justify">A striking aspect of the 24% decline in India&rsquo;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 &ldquo;output&rdquo; 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.</p>
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<p style="text-align:justify">Please <a href="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ">click here</a> to read more.</p>
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The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.
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<strong>A Govt Unequal to the Task as Economy Sinks -Prabhat Patnaik</strong></h1>
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<p style="text-align:justify">-Newsclick.in</p><p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">Please <a href="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ" title="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ">click here</a> to read more.</p> </font>
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<p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p>
<p style="text-align:justify">A striking aspect of the 24% decline in India&rsquo;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 &ldquo;output&rdquo; 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.</p>
<p style="text-align:justify">This is surprising for two reasons: first, it shows that government expenditure, instead of being &ldquo;counter-contractionary&rdquo; has been &ldquo;pro-contractionary&rdquo;. 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.</p>
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<p style="text-align:justify">Please <a href="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ">click here</a> to read more.</p>
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<strong>A Govt Unequal to the Task as Economy Sinks -Prabhat Patnaik</strong></h1>
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<p style="text-align:justify">-Newsclick.in</p><p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">Please <a href="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ" title="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ">click here</a> to read more.</p> </font>
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<p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p>
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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...',
'disp' => '<p style="text-align:justify">-Newsclick.in</p><p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">Please <a href="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ" title="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ">click here</a> to read more.</p>',
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<p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p>
<p style="text-align:justify">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.</p>
<p style="text-align:justify">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.</p>
<p style="text-align:justify">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.</p>
<p style="text-align:justify">Please <a href="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ">click here</a> to read more.</p>
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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...'
$disp = '<p style="text-align:justify">-Newsclick.in</p><p style="text-align:justify"><em>The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done.</em></p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">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.</p><p style="text-align:justify">Please <a href="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ" title="https://www.newsclick.in/A-govt-unequal-to-the-task-as-economy-sinks?fbclid=IwAR3PBDdHdpvBnVcn9kK0y5TbixS8HIS8OxEfvUrTsfvxCFmKfSHt0EeS2BQ">click here</a> to read more.</p>'
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LATEST NEWS UPDATES | A Govt Unequal to the Task as Economy Sinks -Prabhat Patnaik | Im4change.org
A Govt Unequal to the Task as Economy Sinks -Prabhat Patnaik
-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.
