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LATEST NEWS UPDATES | Decoding the dip in public expenditure -Avani Kapur and Sharad Pandey

Decoding the dip in public expenditure -Avani Kapur and Sharad Pandey

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published Published on Dec 20, 2020   modified Modified on Dec 21, 2020

-Hindustan Times

Despite enhanced commitments across spheres, the government has spent less this year than it did last year

Typically, when a crisis hits, the expectation is that the Centre — which has more revenue-raising abilities than states — will take the lead in preparing a fiscal road map, loosen its purse strings and raise expenditure significantly. The Covid-19 pandemic is unprecedented in its scale and impact. But this is also when the government is needed even more.

In the initial period when relief measures were the need of the hour, this required ensuring adequate social safety nets. Now, as the economy is opening up, for its multiplier effect on growth, priority needs to be given to infrastructure investments by increasing capital expenditure. The Centre has announced several stimulus packages aimed at doing just that. Unfortunately, a look at the data suggests a difference between rhetoric and reality.

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Hindustan Times, 20 December, 2020, https://www.hindustantimes.com/analysis/decoding-the-dip-in-public-expenditure/story-1fdmOEEnKTyRHwHdcN9n3L.html


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