Tamil Nadu needs an economic reboot

Tamil is an ancient language which jostles Sanskrit on antiquity but remains in vibrant, modern use. It is also a cultural identity. Post-Independence, in 1947, the erstwhile Madras Presidency became the Madras State within the Union of India. In 1956, its borders were redrawn to shed the non-Tamil speaking peripheral areas of Andhra Pradesh, Karnataka, […]

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Repurposing governance- trim the fat in state governments

The tragic snafu over making sufficient oxygen available to meet the spike in demand from COVID-related morbidity is a red flag for an underlying malaise—of overlapping mandates, state governments enfeebled by decades of Union government spoon feeding, and under capacitated local government. Sadly, state governments have voluntarily accepted this hollowing out of their core functions. […]

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Unraveling fiscal stress

Economists belabour the point that emerging out of the pandemic–induced economic downturn is qualitatively different from emerging out of a long–drawn economic recession. Simply put, it is easier to get back to where you were. Turning on a light switch and flooding a dark room with light instantly is apt for describing what happens once […]

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A bottom up look at the annual budget

Despite the hoopla around the Union government’s Budget, for citizens, allocations in their state budgets matter more. Nearly two-thirds of total government expenditure is done by states and for capex, this could be even higher (FY 2020-21 BE data). Union FM primus inter pares Twenty-eight states and eight Union Territories share the enlarged pie at […]

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FM plays Shylock with steely grit

Episodes of fiscal stress are unpleasant. But, like war, they are necessary to separate the wheat from the chaff in governments expenditure profile. The growing overhang of debt servicing This year interest payments account for 89% of the budgeted fiscal deficit. The accumulated debt was incurred not to finance infrastructure or enhance investments. It is […]

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