Welfare should become a bridge to opportunity, not a destination in itself. India’s success will ultimately be measured not by the number of people receiving government transfers, but by the number who no longer need them. Cash assistance can soften hardship and provide dignity in difficult times. It cannot, however, replace the transformative power of stable employment and rising productivity. The challenge before policymakers is to ensure that welfare complements growth rather than compensates for its failures.
This does not mean welfare spending should be curtailed. Rather, it must evolve. The objective should not simply be to support consumption but to strengthen economic capability. Public policy must increasingly focus on helping households acquire productive assets, build enterprises, improve skills and access sustainable livelihoods.
ndia’s states are discovering an uncomfortable truth: economic growth and economic security are not the same thing. For much of the past decade, India has been celebrated as one of the world’s fastest-growing major economies. Yet, across the country, governments are increasingly finding it necessary to transfer cash directly into the bank accounts of women, farmers and unemployed youth.
For poor households grappling with inflation, crop failures, uncertain employment and rising living costs, even modest monthly assistance can mean the difference between stability and distress. The ability of governments to deliver funds directly through bank accounts has reduced leakages and strengthened the social safety net.
Why does a rapidly expanding economy require ever larger welfare commitments simply to sustain household consumption? The answer lies in the persistent gap between growth and employment. India’s economy has generated impressive headline numbers, but secure and productive jobs have not expanded at the same pace.
Source : Opinion Page od The Statesman , Dt.23-06-26
