India's Economic Survey: Govts Should Renounce Powers

New Delhi, Jul 22 (PTI) The finance ministry's Economic Survey on Monday suggested that governments renounce some of their powers as it would be good for 'both the governed and the governing'.

Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 a day before the Union Budget in the Lok Sabha.

While contemplating the challenges that lie ahead, one should not be daunted because the social and economic transformation of democratic India is a remarkable success story, the document, authored by a team lead by Chief Economic Advisor V Anantha Nageswaran, stated.

"We have come a long way. The economy has grown from around USD 288 billion in FY93 (1992-93) to USD 3.6 trillion in FY23," it said.

India has generated more growth per dollar of debt than other comparable nations and abject poverty has all but been eliminated. Human development indicators have improved, and more Indians, especially women, are getting educated, the 476-page document said.

"However, it would be a missed opportunity -- as there have been many in the past -- not to strengthen a system to steer the country through a future that has become immeasurably uncertain," the authors said.

Nageswaran's team noted that after nearly eight decades of relative peace at the global level, the world is moving towards a larger and wider conflict with longer-term effects.

"The Indian state can free up its capacity and enhance its capability to focus on areas where it has to by letting go of its grip in areas where it does not have to," it said.

The licensing, inspection and compliance requires that all levels of the government continue to impose on businesses is an onerous burden.

Relative to history, the burden has lightened. Relative to where it ought to be, it is still a lot heavier, the finance ministry's document said.

The burden is felt more acutely by those least equipped to bear it -- small and medium enterprises, it added.

"Ishopanishad enjoins all of us to let go of (renounce) our possessions, be free and enjoy that freedom," it said, and added, "Power is a prized possession of governments. They can let go of at least some of it and enjoy the lightness it creates in both the governed and the governing".

It further said the "tripartite compact" that this country needs to become a developed nation amidst emerging unprecedented global challenges is for governments to trust and let go, for the private sector to reciprocate the trust with long-term thinking and fair conduct and for the public to take responsibility for their finances and their physical and mental health.