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d be targeted towards the ‘needy’ (Jhabvala, 1998), i.e. the vulnerable groups of the population.He argues that the government spending is not targeting the poor sections of the population and it is true in a certain extent.When we consider the living standards and HDI indicators, the situation of the poor is worsening day by day.But Bhaduri’s argument needs some further clarification because the government spending on social services has increased during the high growth period and the implementation of NREGS also helps in improving the spending.The economic suvey 2008 has shown that the government spending in social services has increased after a dip during the period 2001-04.

Source: Tables 10.2 in the Economic Survey (2007-08)

From the table, it is clear that the social sector (education, health,water supply..) spending has been increased since 2004-05. (Akpan, 2005) told that the observed growth in public spending appears to apply to most countries regardless of their level of economic development.

So the real problem lies not in spending, but in the implementation and distribution of spending the allotted money.There are lot of question marks raised in the implementation of NREGS and the presence of middle men in the activity.Bhaduri should have criticized the implementation and the working of administration.

Wealth creation of private corporates and Allegation on ‘transfer of land’

The author claimed that the number of Billionaires in India is much higher than most of the developed nation and which a true fact is indeed.But the wealth of Indian Billionaires is still raising and Bhaduri alleged that 60% of their profit is the result of ‘transfer of public land’ to the private firms. But he failed to produce any evidence and this case at least needs further empirical, composed investigation and analysis. Several studies have conducted recently to find the primary sources of wealth of Indian Billionaires and found that ‘Transfer of land’ is not the specific reason. According to (Mody et al, 2011) the profit behaviour of listed firms in the corporates including big business houses is more typical of competitive behaviour than of the use of market power. So the competition can be lead to increase in wealth.

While considering the older literature, we can see that as growth increases the share of construction falls and the share of machinery and equipment will increase, but the opposite is happening in India.There arise the concept of ‘Rent Thick’. The Forbes list is full of businessmen from 'rent-thick' sectors like real estate, construction, infrastructure, media, cement, mining etc. These are sectors in which the government continues to play a large role, in the form of licenses and other forms of controls (Gandhi and Walton, 2012).Most of the newly born Indian billionaires are concentrated in these ‘Rent Thick’ sectors. In India 43per cent of Billionaires are getting their 60% of wealth from these rent seeking sectors (figure 1 and 2).

Figure 1 and 2: Proportion of Billionaires and Total Billionaire Wealth by ‘Rent-Thick’ or Otherwise in 2012

Number of Billionaires Wealth of Billionaires

Source: (Gandhi and Walton,2012) and Forbes

The Classi?cation in a rent-thick sector does not essentially mean that wealth was acquired through the (legal or illegal) exercise of in?uence among the poli