Read desk. Former Reserve Bank of India (RBI) Governor Raghuram Rajan warned against resorting to tax cuts as a short -term solution to promote demand in the Union Budget 2025. Along with this, it was reiterated that investment in education, healthcare and employment generation should be targeted to make the basis for long -term economic development. Referring to the joint central and state deficit, Rajan said that the country's fiscal condition is not as good, as well as warned that uncontrolled expenses would lead to unstable debt levels.

Fears of fiscal restraint

Calling for fiscal discipline, Rajan said that it would be difficult to explain it with a very limited fiscal place, despite the tax deduction, attractive. He said, “This is not really about the cut in taxes at this level. This is about increasing our human capital quality at every level, which will give us a chance in the new economy of the future. “

Everything is not about taxation

In an interview with the English newspaper, Rajan addressed concerns about India's taxation levels. When asked if he was becoming high tax burden, he argued, “If you are not generating strong income, then anything is going to be problematic. But I do not think this is a big problem at the level of taxes. He reiterated the importance of creating strong employment opportunities to promote economic confidence and consumption.

Slow consumption

Rajan said that a issue that is increasing is of slow consumption in moderate and high-middle income groups. Economic uncertainty has motivated to spend carefully, so people are asking basic questions whether we have proper jobs? Are our children getting employment well? Are we so confident about the future that we can spend?

There is not enough investment in infrastructure

Rajan admitted that government efforts in favor of investment in infrastructure could actually promote development, reminding everyone that “it cannot replace systemic issues”. “Education, healthcare and better quality university system will generate more productive workforce and give rise to sustainable development,” for this he proposed private sector investment.

Describing the continuous lack of private sector investment, Rajan said, “I was worried about why the investment was not coming back. This is a big puzzle. ” He attributed the lack of confidence in future demands for this and the approach to avoid the risk among business leaders.

He argued that until the private sector is relatively convinced about the stable economy as well as the assured demand, investment possibilities cannot increase from here.

A balanced approach to long -term development

Rajan's message is very clear for policy makers to invest in human capital instead of resorting to fiscal incentives like tax cuts. Education, healthcare and skill development are investment that not only deepen productive capabilities but also consumer trust and economic flexibility. He concluded, “This balanced approach will be important for all citizens to improve sustainable development and prosperity.”