Kaushik Basu, the current Chief Economic Adviser to the Ministry of Finance, had a 15-year-long stint as Professor of Economics at Cornell University. The Padma Bhushan awardee has been working closely with the Finance Ministry and the Prime Minister to chart the country’s future growth path. He spoke to MANAV CHOPRA about the need for better monitoring to ensure growth doesn’t happen at the expense of social justice. Excerpts: A common...

Food inflation remains extraordinarily high at 17.79%. The government emphasises supply problems caused by last year’s drought, But a bigger and less reversible problem is government-led inflation through big increases in the Minimum Support Prices (MSP). The MSP for wheat and paddy rose only modestly between 2002-03 and 2005-06 , from Rs 620 to Rs 650/ quintal and from Rs 530 to Rs 570/quintal respecticely. But after that the MSP shot...

WELL before Budget 2010-11 was presented, inflation had emerged as the principal economic problem in the country. With food-price inflation running at close to 20 per cent, even the United Progressive Alliance (UPA) government at the Centre had been forced to recognise it as a problem that deserved as much attention as the objective of achieving a 9 or 10 per cent rate of growth, if not more. In fact,...

The economist and political commentator who was appointed to a four-member team of the UN to recommend reforms to the global financial system critiques Budget 2010 Economist and political commentator Prabhat Patnaik, currently vice-chair of the Kerala Planning Board, is a strong critic of the government’s economic policies. In 2008, Patnaik, who has taught at JNU since the 1970s, was appointed to a four-member team of the UN to recommend...

The new nutrient based subsidy (NBS) regime cleared by the Union Cabinet on Thursday is likely to slash the governments subsidy bill and boost fertilizer production. But one of the major stated aims of the policy that of promoting a more balanced use of fertilizers by farmers may not be actualized unless other measures are implemented in tandem. That seems to be the view of many agriculture experts and economists,...