Budget 2012: Pranab may be forced to act on subsidies today
Pranabda should shun news TV today

Economy Mar 16, 2012

Govt must cut subsidy by merging NREGA and food security

By R Jagannathan

Firstpost spoke to several economists on what lies ahead and their prescriptions are clear: fiscal consolidation, energy pricing reforms, and rationalisation of subsidies.

Reuters

Indranil Pan, chief economist of Kotak Mahindra Bank, told Editor-in-Chief R Jagannathan that his key prescriptions include moving towards diesel deregulation, and merging the MGNREGA (or NREGA) employment guarantee scheme and food subsidies into one composite, since the NREGA's "Keynesian" approach has outlived its utility.

According to Pan, it would be worthwhile checking if NREGA can be "subsumed" in the wider food security plan where the scheme can be used to build assets for the food security infrastructure.

Watch the whole Firstpost interview here.

See more Budget 2012 videos and expert views on Firstpost: Ajay Shah, Rupa Rege Nitsure, Surjit Bhalla, Ashima Goyal, Jim Walker, DK Joshi, Ajit Ranade, Art Woo.

See more Budget 2012 issue based videos on Firstpost: Subsidies, Fiscal Deficit, Inflation, Taxation.

by R Jagannathan

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