The Economic Advisory Council to the Prime Minister headed by noted economist Bibek Debroy has supported incentivising states for achieving targets in sectors like health and education.
According to an official statement, the EAC-PM, at its second meeting held today, also underlined the need to accord high priority to infrastructure financing, and called for new mechanisms for a risk coverage umbrella.
It took stock of the prevailing economic situation and spelt out “a clear road map” for stepping up skill development, job creation and enhanced resource investment in the social sector, including for health and education and boosting infrastructure financing.
“It formulated far-reaching recommendations to guide the evolving framework for the Fifteenth Finance Commission, including the incentivisation of states for achieving health, education and social inclusion outcomes,” the statement added.
The Council is also evolving the design of a new ‘Economy Tracking Monitor’, linking economic growth indicators with social metrics for last-mile connectivity.
Presentations by experts were made to the Council on key themes, including infrastructure financing by Debroy.
“The unique feature of the new Economic Advisory Council to the Prime Minister is turning out to be its ability to link economic growth with social aspects, with greater last-mile connectivity,” the release said.
Its “value addition as an independent institutional mechanism” for providing informed advice to the Prime Minister is increasingly being recognized, it added.
The EAC-PM also dwelt on improvements needed in the National Accounts and discussed innovative steps for unlocking the export and employment potential of growth drivers. It deliberated on transformation of India’s gold market.
Apart from Debroy, the meeting was attended by economists Surjit Bhalla, Rathin Roy, Ashima Goyal, Shamika Ravi and Member Secretary and Principal Adviser NITI Aayog Ratan P. Watal.
In its first meeting the EAC-PM, had identified 10 major issues on which it would deliberate over the course of time and come out with clear implementable solutions to spur growth. These include issues like job creation etc.
The EAC-PM also acknowledge that the country is indeed experiencing a slowdown in economic growth but didn’t support fiscal stimulus to spur it.