Leading economist and co-chairman of Congress party's Economic Cell Arjun Sengupta on Tuesday defended the Manmohan Singh government's support for reservation of jobs for backward sections in the private sector saying democracy cannot afford inequality.
"I know it is an emotive issue. But we have a democratic system where we cannot afford inequality in the same way as Brazil chose development ignoring equitable growth of all sections of the society," he told reporters in New Delhi.
To a question on how will the government handle the situation as the industry had also not liked the idea, Sengupta said the Congress-led dispensation had expressed its support for affirmative action on the matter and everyone would be engaged in evolving the details.
Stating that the current below 10 per cent tax-GDP ratio was a matter of concern, Sengupta, understood to be one of the front-runners for the post of Deputy Chairman, Planning Commission, said the government was working on raising it to satisfactory levels and it would be out in the Budget.
He said there was every reason that the present 7-8 per cent growth rate would be sustained and if maintained for about 4-5 years, the country could witness a long-term growth rate of 10 per cent.
In a direct attack on former Finance Minister Jaswant Singh, Sengupta said the senior BJP leader's estimate that employment guarantee scheme needed about Rs 176,000 crore (Rs 1,760 billion) was "not correct".
To a question, he said: "Let's wait for the Budget that will give details on means for generating fund for the programme."
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