Lok Satta Party President Dr. Jayaprakash Narayan today welcomed the Union Government's package to stimulate the economy, now in a downturn, as "welcome, necessary and well-targeted."
Although it might lead to budgetary deficit and contravene the FRBM (Fiscal Responsibility and Budgetary Management) Act, the package is perfectly justified against the backdrop of global recession and its impact on India. "Deficits need not be feared under such circumstances."
By not addressing the low incomes and educated unemployment, the stimulus package fell short of medium term requirements. The real solution lay in vigorous skills and jobs promotion and focus on universal education and health care.