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LATEST NEWS UPDATES | Won't back fiscal tightening currently: Abhijit Banerjee -Ajeet Mahale

Won't back fiscal tightening currently: Abhijit Banerjee -Ajeet Mahale

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published Published on Jan 13, 2020   modified Modified on Jan 13, 2020
-The Hindu

Nobel laureate Abhijit Banerjee says the deficit numbers are a bit imaginary, not a big deal if breached

Mumbai:
Nobel laureate Abhijit Banerjee has said that he would not back fiscal tightening in the current economic environment.

Prof. Banerjee added that the real constraint to the state of education in the country in the current climate of economic slowdown was not lack of money, but the lack of attention paid to the sector.

The Union Budget 2019-20 pegged the fiscal deficit target at 3.3% of GDP. “I think the budget deficit numbers are a little bit imaginary. I don’t think it’s a big deal to breach it more. Certainly, I won’t be supporting fiscal tightening right now,” he said on Saturday while interacting with journalists ahead of a talk he delivered at the Tata Institute of Social Sciences. Prof. Banerjee had been associated with Pratham, an NGO in education at whose silver jubilee he gave the speech, and had used randomised control trials on its projects. Speaking about the impact of the current economic slowdown on education, Prof. Banerjee said that the real constraint was the lack of attention, and not money. “People are starting to get very worried about the state of the macro-economy [which] is not very good news,” he said. He added that the Centre had little role to play in funding education as it was a State subject.

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The Hindu, 11 January, 2020, https://www.thehindu.com/business/wont-back-fiscal-tightening-currently/article30545500.ece?homepage=true


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