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Why Modi government is moving away from the path of economic austerity

Why Modi government is moving away from the path of economic austerity
The popular conservative economic outlook has been widely proven to be unsuccessful in helping struggling economies get back on their feet.
Feb 09, 2021 · 01:30 pm
Austerity s failure to bring economies out of deep distress could be the reason behind Finance Minister Nirmala Sitharaman’s stance on increased government spending.
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Prakash Singh/AFP
The Narendra Modi government, which kept a hawk-eye on spending over the past seven years, has said that the fiscal deficit for 2020-’21 will stand at 9.5%. This would be the highest at least since India liberalised its economy in 1991. ....

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India says no to austerity to help economy out of Covid-19 slump — Quartz India

February 8, 2021
The Narendra Modi government, which kept a hawk-eye on spending over the past seven years, has said that the fiscal deficit for 2020-21 will stand at 9.5%. This would be the highest at least since India liberalised its economy in 1991.
For context, the fiscal deficit for 2019-20 was 4.6% of India’s gross domestic product (GDP).
On the face of it, a high fiscal deficit the difference between the government’s revenues and expenditure is alarming. It increases government borrowings and sends it into an interest repayment cycle, which only further increases spending in the future.
Governments in the past have taken the route of austerity to keep the fiscal deficit in check. This has been a common economic strategy, its biggest champions being former US president Ronald Reagan and former UK prime minister Margaret Thatcher in the 1980s. ....

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Where are the jobs? Insights from LinkedIn's 'Jobs on the Rise' report

Updated Jan 21, 2021 | 10:16 IST
How COVID has disrupted & caused a systemic shift in the labour market. A look at the jobs in demand across geographies exemplifies the impact of the pandemic.
(Representative Pic) | Photo Credit: iStock Images
Key Highlights
How has COVID impacted the labour market?
Jobs in digital & healthcare in high demand as COVID causes definitive shift in labour markets.
The repercussions of 2020 are likely to last for a long period of time. Behavioural changes, fear, consumption patterns and more importantly, jobs, there has been a seismic shift across all these paradigms. According to the Centre for Monitoring India-Economy (CMIE), employment in December 2020 in India was 1.47 crore lesser than in December 2019. While such a massive disruption in jobs is a story in itself; the sub-patterns in jobs losses are even more alarming. ....

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