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The editorial “Scripting a revival” (Business Line, May 5) has aptly remarked that “The Government must ensure that public spending creates the commensurate increase in employment and demand for goods”.

Productive employment is key to economic growth, which is defined as a process whereby the real income increases. Public spending that results in transfer of income to people can enhance the money circulation and demand for goods, but will push up their prices, as there is no corresponding increase in employment and output. Also, one feels, ‘dig-in-holes and fill-in-sand’ policy as suggested by Keynes to stimulate the aggregate demand is not a solution to revive the Indian economy.

S. Ramakrishnasayee Ranipet (TN)

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