Equity and Inclusion through Public Expenditure: The potential of the NREGS

Jan 29th 2008, Jayati Ghosh

In the present situation of global economic crisis and national economic slowdown, “inclusive” public expenditure, such as in the NREGS is not only desirable from a social or welfare perspective – it also provides very direct economic benefits. This is because wage employment schemes like NREGS tend to be self-targeting and thus will lead to a higher multiplier effect, making government expenditure more effective in reviving output and indirect employment.

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