ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Better to Reflect Than Shoot the Messenger

There was a significant reduction in the overall estimated footfall for outpatient and inpatient care at the all-India level between 2014 and 2017–18. However, the reduction in estimated footfalls was significantly higher in private facilities as compared to public facilities. Also, states with better health infrastructure observed a relatively lesser reduction in the overall footfall under public facilities than states with weaker health infrastructure. Across all economic deciles, there was no significant fall in the proportion of patients utilising public healthcare facilities in 2017–18 compared to 2014.

The Changing Monetary Environment

In the recent past the RBI has been using open market operations to sterilise the inflows of foreign capital so as to contain domestic monetary expansion. Due to a rise in the income velocity of base money this has created an incentive for the government to resort more to market borrowings from banks which has raised real interest rates and which exerts a depressing impact on the growth of economic activity along with creating pressures for the inflation rate to increase. The changed environment calls for a reduction in government expenditures which, whilst reducing interest rates and enhancing the level of economic activity, will also help nudge the economy to a lower inflation level.

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