Topic: Inclusive growth and issues arising from it; Government Budgeting.
5. With the Union Budget around the corner, the Indian government could think of measures to reduce the widening inequalities exacerbated by the pandemic. Elaborate. (250 words)
Reference: Indian Express
Why the question:
The annual Oxfam Report claims that India’s 100 top billionaires increased their wealth by nearly Rs 13 lakh crore during the pandemic showing the ever increasing inequalities.
Key Demand of the question:
Elaborate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Begin by giving context regarding the ever growing inequalities in India which are further widened by the Pandemic.
Give relevant stats from the Oxfam report which captures the above.
Analyze the reasons for the growing inequality. Factors, such as the role of technology in the globalising economy; rising incomes of top earners; Wages have become more unequal. More intense competition from foreign firms and a decline in higher-paying manufacturing jobs etc.
Write about how the Union budget presents an opportunity to make things better. Cost of healthcare, vaccine distribution, Education, fiscal measures, social safety for the poor, consider imposing a temporary covid-19 tax on the rich etc.
Conclude with a way forward.