It’s time to reform how India spends borrowed money4 min read . Updated: 11 Feb 2021, 09:44 PM IST
- India’s big expenditure plans are laudable but resources must be used efficiently. Our interest payments exceed productive spending, which often falls short of its target. This must change.
- A debt burden is worthwhile only if it works well for our economy. We should diversify funding sources, improve tax administration, and set up a fiscal council to guide governments.
The Union Budget 2021-22 has rightly been lauded for its bold measures. The way the government acknowledged India’s need to diverge from its fiscal consolidation path, and its transparency on this, was quite impressive. Yet, ensuring that resources are used efficiently is as important as acknowledging that additional resources are required, if not more.
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