{"id":260419,"date":"2023-09-16T20:03:28","date_gmt":"2023-09-16T14:33:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=260419"},"modified":"2023-09-16T20:03:28","modified_gmt":"2023-09-16T14:33:28","slug":"being-people-centric-on-government-spending","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/being-people-centric-on-government-spending\/","title":{"rendered":"Being people-centric \u2013 on government spending"},"content":{"rendered":"\n

Source:<\/strong> The post is based on the article \u201cBeing people-centric<\/strong>\u201d published in \u201cBusiness standard\u201d on 16th September 2023.<\/p>\n

Syllabus:<\/strong> GS3- Economy- Indian Economy and issues relating to planning, mobilization of resources.<\/p>\n

News:<\/strong> The article discusses how, despite India’s government spending a significant percentage of its GDP, it doesn’t always achieve better outcomes in areas like health, education, and infrastructure compared to other countries that spend less.<\/p>\n

What are the major concerns with India\u2019s government spending?<\/strong><\/h2>\n

Inefficient Spending According to IMF:<\/strong><\/p>\n

As per the International Monetary Fund’s data, India spends 28% of its GDP, but the country lags in sectors like health and education.<\/p>\n

In comparison, Bangladesh spends only 14.5% of its GDP but shows better life expectancy and schooling outcomes.<\/p>\n

Misleading Data:<\/strong><\/p>\n

A higher percentage of GDP spending might not mean more actual spending per individual.<\/p>\n

Some Southeast Asian nations, with a lower GDP percentage, possibly outspend India on a per-capita basis.<\/p>\n

Service Quality Issues:<\/strong><\/p>\n

Services such as education and healthcare in India, despite substantial funding, often face quality concerns.<\/p>\n

Growing Fiscal Concerns:<\/strong><\/p>\n

Over recent years, India’s government revenue as a percentage of GDP has decreased.<\/p>\n

This trend leads to an expanding fiscal deficit and a rise in public debt, with agencies like Fitch emphasizing these fiscal challenges.<\/p>\n

What should be done?<\/strong><\/h2>\n

People-Centric Programs:<\/strong> Emphasize Prime Minister Modi’s vision of making programs more people-focused, ensuring citizens truly benefit.<\/p>\n

Infrastructure and Basic Amenities:<\/strong> Accelerate investments in transport infrastructure, supply of electricity, tap water, and provide amenities like lavatories and clean cooking fuel.<\/p>\n

Financial Incentives:<\/strong> Launch incentive programs to boost investments in select manufacturing sectors, encouraging economic growth.<\/p>\n

Growth-Centric Approach:<\/strong> While focusing on people’s welfare is essential, prioritizing GDP-centric growth is also crucial to increase revenue and fund welfare programs.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cBeing people-centric\u201d published in \u201cBusiness standard\u201d on 16th September 2023. Syllabus: GS3- Economy- Indian Economy and issues relating to planning, mobilization of resources. News: The article discusses how, despite India’s government spending a significant percentage of its GDP, it doesn’t always achieve better outcomes in areas like… Continue reading Being people-centric \u2013 on government spending<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216,8184],"class_list":["post-260419","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/260419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=260419"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/260419\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=260419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=260419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=260419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}