Sen and government spending

THE country is debating the role of large scale subsidies in a development-led growth model pursued by the Modi government. Economist Amartya Sen has come forward strongly with his view shortly after turning 81 in November. He is a strong advocate of government spending in health and education sectors and feels that for sustainable growth, India has to take care of the needs of the poor, especially women. He is a leading voice on politics and justice. With Jean Dreze, he co-authored a book, “An uncertain glory: India and its contradictions.” The book had invited criticism for its advocacy of government spending on subsidies and welfare programmes. The impression had been created that he was pro-UPA government in office at the time. He was however honoured by the Atal Behari Vajpayee government in 1999 with the Bharat Ratna. It was despite the fact that Sen criticized the making of the bomb at Pokharan that year.
Amartya Sen does not support the idea that only subsidies for the poor should not be cut and that it does not apply to the rich. The concerns over subsidies and fiscal responsibility, according to him, should not be restricted only to the poor. It appears to be at odds with his contribution to the United Nations Human Development Index. It is not clear why Sen puts emphasis on subsidies for the rich. Does it mean that he believes in increased capital formation spurring growth through subsidies for the rich? An economist who is well known for being focused on poverty should attach greater importance to the levelling down of the BPL in the country than to speeding up the growth rate. Growth without equity does not help poverty alleviation.