Economic Survey points out three threats to India’s progress

Economic Survey points out three threats to India’s progress

the Economic Survey 2017, which was presented in Parliament today, has listed three challenges that might impede India’s progress—ambivalence about property rights and the private sector; deficiencies in the state capacity, especially in delivering essential services; and inefficient redistribution.

The survey highlights difficulties in privatising public enterprises, even for firms where economists have made strong arguments that they belong in the private sector. The survey points towards the need to further privatize the civil aviation, banking and fertilizer sectors. The survey points out that the capacity of the state in delivering essential services such as health and education is weak due to low capacity, with high levels of corruption, clientelism, rules and red tape.

“At the level of the states, competitive populism is more in evidence than competitive service delivery, the Survey adds. Constraints to policy making due to strict adherence to rules and abundant caution in bureaucratic decision-making favours status quo,” it says. According to the survey, redistribution by the government is far from efficient in targeting the poor. This is intrinsic to current programs because spending is likely to be greatest in states with better institutions and which will therefore have fewer poor.

The survey notes that over the past two years, the government has made considerable progress toward reducing subsidies, especially related to petroleum products. Technology has been the main instrument for addressing the leakage problem and the pilots for direct benefit transfer in fertilizer represent a very important new direction in this regard, the survey adds.

 

News Source: economictimes.indiatimes.com

 

 

You might also like

Trending

Dubai Parks and Resorts unveils its new season line up

  Lionsgate zone at MOTIONGATE™ Dubai will shortly be unveiled to the public featuring the world’s first rides and attractions inspired by the international movie blockbuster series ‘The Hunger Games’ A

Latest

The Landmark Mandarin Oriental, Hong Kong launches ‘The Apartment Suite’

The Landmark Mandarin Oriental, Hong Kong launches ‘The Apartment Suite’ with an exclusive ‘Central Retreat’ introductory package! The Landmark Mandarin Oriental, Hong Kong has unveiled the first of two new

Via.com unveils Biggest Online Travel Sale (BOTS 2.0)

The five-day long second edition from Nov 16-20 is offering exclusive discounts across flights, hotels and holiday packages. Via.com, Asia’s leading omni channel travel, retail and fintech company, has announced