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LATEST NEWS UPDATES | Jean Dreze: No Point In India Growing So Fast If Wages Stagnate And Social Spending Is Slashed - Shreehari Paliath

Jean Dreze: No Point In India Growing So Fast If Wages Stagnate And Social Spending Is Slashed - Shreehari Paliath

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published Published on Feb 13, 2023   modified Modified on Feb 13, 2023

Budget 2023's allocations for most critical social security schemes have declined in real terms, says economist Jean Dreze

- IndiaSpend

The last full Union budget before the next general elections in 2024, which was presented on February 1, gets "a big zero" in terms of welfare spending from economist and social activist Jean Dreze. Budget allocations for most critical social security schemes have declined in real terms, Dreze said.

The Union government withdrew the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), under which poor households were receiving free foodgrains in light of the economic shock wrought by the Covid-19 pandemic and related lockdowns. One reason why the allocation for food subsidy in Budget 2023 is lower than the last two years is the discontinuation of these bonus food rations, said Dreze.

Beginning January 1, the government announced that foodgrains to 813.5 million beneficiaries under the National Food Security Act (NFSA) 2013 would be distributed for free for one year. This includes 5 kg foodgrains per person to Priority Households and 35 kg per household to the poorest of the poor households. But this offers little help to poor families and enables Prime Minister Narendra Modi to steal the credit for NFSA, said Dreze. "People are going to save a few rupees every month on the issue price [of foodgrains under NFSA], and lose big on the quantity," he said.

In an interview, Dreze speaks about India's reduced social sector spending in face of increased hunger and inequality post the Covid-19 pandemic.

Please click here to read the interview


Shreehari Paliath, IndiaSpend, 8 February, 2023, https://www.indiaspend.com/indiaspend-interviews/no-point-in-india-growing-so-fast-if-wages-stagnate-and-social-spending-is-slashed-852240


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