<b>T N Ninan:</b> Government gets bigger

The manner of bank recapitalisation, new price controls in pharma, use of Aadhaar point to an expanding rather than contracting role for government

The government’s decision to pour Rs 2.11 lakh crore into the capital of government banks has been received well in most quarters, partly because people see it as being inescapable in the given context. What has received less attention is the sub-text of the announcement, pointing as it does to bigger government—a trend that is already evident in other spheres. Basically, we are moving away from the Modi promise of less government.

The manner in which the banks are to be recapitalised will mean government outlay (most of it from borrowed funds) of over Rs 1.5 lakh crore, split over