The majority of economists today are opposed to allowing governments a significant role in economic affairs. In particular, demand management and redistributive policies are frowned upon, and supply-side policies (that concentrate on enhancing the profitability of business operations) are advocated as the only legitimate channels of government action. The possibility of ‘government failure’ in the economic sphere is endlessly emphasised.
The book argues that this view is only partially correct, at best. To make development inclusive and sustainable over the long run, the state must step in as an active enabler and regulator of private initiative. In a good society, the public–private relationship should be complementary, not adversarial. The enabler–regulator duty of the government cannot be effectively discharged with only supply-side and monetary instruments. Well-designed, effectively implemented fiscal action is indispensable for promoting social welfare with its twin aspects of efficiency and distributive justice.
Within a short compass, the strengths and limitations of tax expenditure policies in managing the economy are discussed in non-technical language, keeping the ‘government failure vs market failure’ debate as a focal point.
By:
Soumyen Sikdar
Imprint: Routledge
Country of Publication: United Kingdom
Dimensions:
Height: 216mm,
Width: 138mm,
Weight: 370g
ISBN: 9781032955421
ISBN 10: 1032955422
Series: Routledge Focus on Management and Society
Pages: 108
Publication Date: 09 May 2025
Audience:
General/trade
,
College/higher education
,
ELT Advanced
,
Primary
Format: Hardback
Publisher's Status: Active
1. Some Important Definitions and Two Divergent Views 2. Role of the State, Notion of Efficiency, Types of Economic Policy 3. How Fiscal Policy Works 4. Market Failure and Government Failure 5. Size of the Public Sector, Costs of Taxation 6. Fiscal policy in a Globalized World 7. Closer look at Public Debt 8. Government Actions for Sustainable Long Run Growth 9. Conclusion
Soumyen Sikdar retired as Professor of Economics at the Indian Institute of Management Calcutta, India. He has also taught at Calcutta University, Burdwan University and Presidency University, India. As Faculty/Researcher, he has visited the Indira Gandhi Institute of Development Research (India), Osaka University (Japan) and Aarhus University (Denmark). His research interests include macroeconomics of open economies, India and globalisation and public policy.
