Dr Palanivel Thiagarajan, a banker-turned-politician, used his annual lecture at the Asian College of Journalism to help aspiring business journalists understand the root causes of India’s current economic malaise.
The DMK MLA also talked about what the current leaders could do to revive Asia’s third-largest economy.
He took the class through a brief history of the spending patterns of previous governments on everything from infrastructure to welfare schemes.
Governments should ideally act as administrators and effectively spend their revenue on building infrastructure and creating a safety net for the poor, Thiagarajan said.
If a government spends more than three percent of its revenue on interest payments for borrowings, it’s a sign of trouble in the economy, he said.