Next budget should take care of jobs, investment: Economists

NEW DELHI: With the new UPA Government expected to come out with the full Budget for 2009-10 within 45 days of its formation, economists want it to bring in measures to generate employment opportunities and to boost investment.

While leading economist Meghnad Desai said stimulus packages provided by the Government were not enough, former Chief Economic Advisor Nitin Desai said there is no fiscal space for another package.

Meghnad Desai said, "There is a recession and the packages given by the government were not adequate. The growth rate is not bad but it is not good either. Attention should be paid to unemployment, whatever economic package they come out with."

However, Nitin Desai said there is no fiscal space for another stimulus but it can be in the form of policy changes such as revision of direct taxes to allow greater deduction for calculating corporate tax for investment purposes.

But Meghnad said, "This is not the time for fiscal discipline, but yes, they (the new government) should set a time frame for themselves for coming back to fiscal prudence."

Rajiv Kumar, the Director of research institute ICRIER, said the country does not need another stimulus package, rather the Government should go for structural reforms to improve the investment climate in the country.