To pay the tribute to Bharat Ratan Dr. B.R Ambedkar on 64th death anniversary being observed on 06^th December, let us know him as a professional economist more than champion of scheduled castes and one of the authors of the constitution of India with relevance for any economy of the world including India with butterfly effect- a small change at one place in a complex system can have large effects elsewhere in the world to reduce if not remove the panic and fear ( false evidence appearing real) of the covid created the economic crisis.

Ambedkar deserves to be known to the World as an outstanding economist with recognition more than a noble prize in economics. The unique aspect of his scientific mind is evident in various memoranda and statements that he submitted to the Government of India from time to time are indicative of the fact that he had mastered the subject of economics to a great extent. He did his DSc from the London School of Economics.

To reduce panic and fear of the covid-19 crisis in any economy, it would be relevant to adopt the canons of public expenditure advocated by Ambedkar. In 1949, Ambedkar said that every Government should spend the resources garnered from the public not only according to rules, laws and regulations but should also see that ‘faithfulness, wisdom and Economy’ are adhered to in the acts of expenditure by public authorities.

The remarkable thing about Ambedkar’s canons of public expenditure is that they are ism-neutral. One can follow a policy of a large or small public sector and yet the principles behind these canons are applicable.   First, the cannon of faithfulness, faith in this context as defined by the dictionary a ‘duty or commitment to fulfil a trust, promise…’ Thus, it is necessary for the politicians in power and opposition to be faithful to the original intentions of the will of people who voted them to win the elections. 

Wisdom is the second canon of Ambedkar. A policy of the Government when executed may be faithful but may not be wise. While sagacity, prudence and commonsense are the symptoms of wise Government, it should also possess experience and knowledge of economics that can be practically applied in specific areas. In the context of a just utilization of public funds, economic wisdom of the academic professional outside Delhi durbar becomes a paramount necessity.

The third canon of the economy takes on a special meaning to achieve social well being. The apparent faithfulness to the intentions and wisdom are not sufficient in themselves for public expenditure. The economy in public expenditure does not simply mean a low level of public spending but is the intelligent use of funds so that every rupee is beneficial worth its purchasing power which is otherwise declining day by day.

These canons of Ambedkar are sufficiently flexible so that expenditure can be related to the state of any economy. Ambedkar emphasized that the expenditure decision should closely relate to the specified objectives and the available resources, besides ensuring economy, efficiency and effectiveness. The allocation of expenditure among competing demands and the manner of utilization fall within the domain of these canons.

Ambedkar canons can be used as a touchstone to see whether a particular item of expenditure is necessary or not. Every single decision should be assessed in terms of the faithfulness to the will of the people; wisdom as provided by the professionals in the field, coupled with well-considered and honest judgment in execution.

Thus, Ambedkar’s canons of public expenditure are of great use for Indian economy capable of facing covid- 19  created economic crisis. Let Ambedkar ( a known name but not as an economist) be known to the World as an outstanding economist deserving recognition more than a noble prize in economics.

Professor Dr. Madan Mohan Goel is Former Vice Chancellor and Kurukshetra based Needonomist.