Why not use Budget 2019 to reveal what it takes to fund a welfare state?
Nirmala Sitharaman's tricky fiscal balancing act comes from the need to expand last-mile welfare measures at a time when growth isn't exactly booming
Budget 2019 offers the chance to start a clean slate and be upfront about total public borrowings taken to fund the Centre’s programmes
Budget 2019: The one thing finance minister Nirmala Sitaraman must do in her budget statement is to be transparent and upfront about the actual borrowings by the government.
In 2018-19, the Food Corporation of India (FCI) borrowed at least Rs 1,00,000 crore to meet the cost of Centre’s food procurement program. Similarly, the National Highway Authority of India has borrowed on behalf of the Centre to build roads. Public sector oil companies and electricity utilities have borrowed on the Centre’s account to deliver subsidies to the poor, whether in the Ujwala gas cylinder scheme or building last mile electricity infrastructure.
Interestingly, the BJP-led NDA government has formalised this arrangement by making public sector undertakings (PSUs) and other public utilities borrow...read more
In 2018-19, the Food Corporation of India (FCI) borrowed at least Rs 1,00,000 crore to meet the cost of Centre’s food procurement program. Similarly, the National Highway Authority of India has borrowed on behalf of the Centre to build roads. Public sector oil companies and electricity utilities have borrowed on the Centre’s account to deliver subsidies to the poor, whether in the Ujwala gas cylinder scheme or building last mile electricity infrastructure.
Interestingly, the BJP-led NDA government has formalised this arrangement by making public sector undertakings (PSUs) and other public utilities borrow...read more
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