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Total

86.46

84.21

82.46

84.52

87.71

92.40

98.38

Source: Ministry of Labour & Employment, Director General of Employment and Training.

From the table we can understand that in the high growth period there is a gradual increase in the employment in manufacturing sector and the total employment in private sector also had shown a significant positive change. So instead of considering the methodological issues in calculating the private sector performance and the data, Bhaduri made an assumption that private sector growth is ‘jobless’. He should have concentrated more on the ‘emergence of skill shortage’ (lack of demand for skilled and semi-skilled labourers) as the main reason for the joblessness.

Observations on the fiscal responsibility and budgetary management act (FRBM)

Bhaduri claimed that the introduction Fiscal Responsibility and Budgetary Management Act(2003) is not crisis-driven, but strategy-driven(Bhaduri,2006).FRBM act is implemented as part of fulfilling the conditions of multinational agencies as part of the strategy of ‘sound finance’. He added that this strategy will only benefit the financial markets, not the poor. The normal Keynesian argument is also the same.i.e; the raise in fiscal deficit will only lead to the development of the country. But anti-Keynesian economists argue that is ‘inflationary’.

But during the period of high growth, India had a better fiscal situation than before and we cannot completely ignore the contribution of FRBM act. Since the implementation of the act, the fiscal deficit has started decreasing gradually up to 2008(Table 2).The fiscal situation both center and states has shown a positive path, thogh the situation is far from ideal. Bhaduri avoided the fact that the infamous 1990’s crisis is a result of the huge fiscal deficit and only shows the need of controlling fiscal deficit.

Table 2

Center and states’ fiscal deficit (% of GDP at current market prices)

Year

Centers’ Deficit

States Deficit

2000-01

5.65

4.18

2001-02

6.19

4.14

2002-03

5.19

4.06

2003-04

4.48

4.38

2004-05

3.88

3.32

2005-06

3.97

2.44

2006-07

3.32

1.81

2007-08

2.55

1.51

Source : Reserve Bank of India, Central Statistical Organization and Ministry of Finance

The table shows a notable decline in fiscal deficit even if the government has introduced employment programmes like MNREGS (2005), which helps in pumping huge amount money to the economy during the high growth period. Even if the act satisfies the interests of the financial markets, we cannot ignore the change in fiscal situation during the high growth period.

Public expenditure on social services

Bhaduri claimed that the policies of Public Expenditure for the poor during the high growth regime are only benefiting the rich. Social security policies implemented in developing countries shoul本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。