1. Five guarantees will boost economic growth in short run: Mid-Year Review of State Finances
It is expected that the five guarantee schemes of the present Karnataka government would not only lead to distributive justice but also boost the economic growth of the State in the short run by increasing consumption, according to the Mid Year Review of State finances 2023-24 that was tabled in the Assembly on December 14.
However, with necessary structural reforms and enhanced Ease of Doing Business coupled with higher capital expenditure, the State is expected to maintain a high growth trajectory in the long run. The guarantee schemes will have a multiplier effect on local economy, while the free bus travel scheme is expected to improve participation of women in the labour force, the review says.
