Take a pause from Budget politics and rethink governance: Nobel Laureate Abhijit Banerjee

Nobel Laureate and renowned economist Abhijit Banerjee has urged policymakers to take a step back from the annual whirlwind of Budget politics, suggesting a reevaluation of governance models. Speaking at a recent economic forum, Banerjee highlighted the limitations of the current Budget-to-Budget approach, which often prioritizes short-term fixes over sustainable, long-term strategies. He emphasized that this cycle can lead to a narrow focus on fiscal numbers rather than addressing fundamental issues that impact citizens' lives. Banerjee proposed that governments should instead concentrate on building resilient institutions and policies that transcend the annual financial statements. He argued that such a shift could foster more comprehensive economic frameworks, capable of adapting to unforeseen challenges such as economic downturns or global crises. By focusing on structural reforms and inclusive growth, Banerjee believes that governance can become more responsive and effective in meeting the needs of the populace. The economist's call for change comes at a time when many countries are grappling with economic uncertainties and social inequities. Banerjee's insights invite policymakers to reconsider how governance is structured, encouraging a move beyond the confines of fiscal calendars. His perspective suggests that a broader, more holistic approach could ultimately lead to more equitable and sustainable development outcomes, benefiting societies as a whole.

— Authored by Next24 Live