Government has decided to introduce food security bill recently which is something like NREGA that would definitely lifts up its image in front of commoner. But the consequences of these costly subsidies can be veritably gruesome. Having experienced the effects of fiscal deficit during 1991, it is not expected from a responsible fiscal policy designer.
The fiscal deficit of 3% is now a distant dream. The economy that is suffering from Inflation, Currency depreciation and high fiscal deficit should only teach how to fish and not give fish as freebies. Any leakages in implementation can lead to high corruption (and hence unstable economy) and any deviation from the noble intention might make people slothful (and hence unproductive economy).
Unless fiscal policy does not have political reasons as its impetus, controlling deficit is inconceivable.
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