06 JAN,2020 | MEDC
The fiscal deficit of the Union government rose to 115% of its annual target in the first eight months of the current financial year. Given the current economic and fiscal situation in the country, this does not bode well for sustainable growth. The long-term solution to this intractable problem lies in investing strategically in human capital, as that will have a high positive multiplier effect on the economy. Some key areas needing immediate interventions are healthcare, education, nutrition, water management etc. If we are unable (or unwilling) to invest substantially in these basic social services, we risk being unable to reap the benefits of our unique demographic dividend. Ultimately, an investment in human resource development will pay the highest returns, and that will have a salutary impact on the worrisome fiscal situation. There are no shortcuts here.
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