How to grow out of deficits and debt

Abstract

The Budget should focus on growth, rather than tax the rich, to prune the fiscal deficit. The country is preparing for a pre-election year Union Budget, and much is expected of the experienced Finance Minister. Would the rich be taxed further to narrow the deficits and woo the aam aadmi? On fiscal prudence, an enlightening argument is presented by Evsey Domar, accomplished academician and central banker. To quote: “If all the people and organisations who work and study, write articles and make speeches, worry and spend sleepless nights — all for fear of debt — could forget about it for a while and spend even half their efforts trying to find ways of achieving a growing national income, their contribution to the benefit and welfare of humanity and to the solution of the debt problem would be far greater (Page 823, American Economic Review, 1944).” Read more at: https://www.thehindubusinessline.com/opinion/How-to-grow-out-of-deficits-and-debt/article20582721.ece