Column : The misnomer of growth-oriented Budgets
We then look at the expenditure side and make myriad suggestions on where the government should be spending money to inspire growth. To understand whether this can work, we need to look at the less-looked-at document—the Economic and Functional Classification of the Budget—which gives a break-up of expenses of R14.96 lakh crore under various economic heads.
The Budget allocations can be divided into three categories—productive, non-productive and Keynesian. The productive ones are those that are in the area of capital formation and include all expenses that are earmarked for such activity. This includes direct expense for capital formation as well as allocations to other bodies for this purpose. The non-productive category includes mainly transfer payments that tinker with the ‘economic
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