“Jobless Growth” in India – Forbes

Leading financial magazine Forbes warned that India faces the prospect of jobless growth saying that the Information Technology sector is too small to support the burgeoning work force. Forbes stressed on the need to expand the manufacturing and energy sectors, which are usually the primary drivers of job growth. Forbes also warned that the growing fiscal deficit could potentially stifle growth due to lower government spending. The magazine also reiterated the pitfalls of red tape, saying that the greater danger is that the will to reform the economy gets weaker the further down the bureaucracy one gets from central government.

TN Budget discussions

Participating in the general debate, Leader of Opposition Jayalalitha lashed out at the TN Budget calling it a ‘villian’ and a ‘quagmire’. She claimed that revenue deficit have grown from an estimated Rs. 207 crores in the interim budget to Rs. 1,129 crores in the revised budget. She also said that the Finance Minister “openly confessed that the Medium Term Fiscal Plan, which is mandated by Tamil Nadu Fiscal Responsibility Act, 2003, which was subsequently amended in 2004 and 2005, has broken down”.

Finance Minister Anbazhagan responded to Jayalalitha’s charge by stating that the projected revenue deficit was well within 3 percent (of total revenue) level permitted by the 12th Finance Commission. He also dared Jayalalitha to bring a no-confidence motion against the government.