Kaushik Basu Calls for Welfare-Focused Budget to Boost Small Businesses and Job Creation

Kaushik Basu, former World Bank chief economist, urges the Modi government to prioritize welfare and job creation in the upcoming Budget. Basu highlights India's high youth unemployment and inequality, suggesting increased taxes on the rich to support the manufacturing sector. Finance Minister Nirmala Sitharaman will present the Budget on July 23.

Kaushik Basu, the former World Bank chief economist, has urged the Modi government to prioritize the welfare of ordinary citizens and job creation in the upcoming Union Budget. Basu emphasized the need to allocate more funds to the manufacturing sector to support small businesses and boost employment.

In an interview with PTI, Basu pointed out the importance of addressing ground-level economic welfare, rather than solely focusing on aggregate GDP growth. "The government should turn its attention to the welfare of ordinary citizens and not just to climbing up the chart of aggregate GDP," Basu stated.

Basu also highlighted the issues of rising inequality and high youth unemployment, which he noted are among the highest in the world. He suggested that higher taxes on the rich could help incentivize the manufacturing sector and raise the income of ordinary people. The upcoming Budget, scheduled to be presented by Finance Minister Nirmala Sitharaman on July 23, offers an opportunity to address these concerns.