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With a huge informal economy, government should increase spending, not worry about deficit -Maitreesh Ghatak

-The Indian Express To get the engine of the economy revving, an expansionary fiscal policy that harnesses the energy of the informal sector to boost aggregate demand is the order of the day. That India is in the midst of a serious economic slowdown is no longer in question. The debates are now mostly about what to do about it: Whether to opt for a fiscal expansion to boost demand or to...

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Natural farming for fiscal prudence? -Arunabha Ghosh and Niti Gupta

-Business Standard Natural farming is an alternative to chemical fertiliser-based and high input cost agriculture After decades of intensive agriculture, farms and farmers are in a crisis, food markets remain distorted, and consumers do not have access to nutritious diets. India needs a shift towards sustainable food systems. Among many alternative farming techniques is natural farming, with the potential to improve sustainability and also meliorate government finances. Natural farming is an alternative to...

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One state, one ration card: MP reforms its Aadhaar-enabled PDS, helps migrant workers -Milind Ghatwai

-The Indian Express Madhya Pradesh government has now found a solution. Under the Aadhaar-enabled PDS, the respective grain quota is given to the nominee after verification of his biometric details. It’s not uncommon for beneficiaries of the public distribution system (PDS) to miss out on their quota of monthly food grains for reasons ranging from disability to old age to failure of the biometric verification system. But the Madhya Pradesh government has now...

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Redesigning India's ailing data system -RB Barman

-The Hindu The present national accounting and analytical framework misses out on many key dimensions of a complex economy The new series of Gross Domestic Product (GDP) figures with 2011-12 as base, released in 2015, has not gone well with analysts; the withholding of employment-unemployment data for some time and consumer expenditure data, which is not released, added to this unease. Bringing the National Sample Survey Office (NSSO) under the fold of...

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The puzzle of inflation going up despite low demand in India -Himanshu

-Livemint.com The government’s inordinately large food stockpiles have resulted in an artificial market scarcity On 7 January, the ministry of statistics released India’s advance estimates of national income for 2019-20, pegging the economy’s growth rate this financial year at 5%. Based on data available for the first two quarters, this seems an overestimate. Most indicators suggest that actual growth may be lower than 5%. This is bad news, especially since there is...

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