ARTICLE POINTS- BADHALI KE GUNAHGAR BY SHREE BALBIR PUNJ: Review of the deteriorating Indian economic conditions in India by shri Balbir Punj in his article Badhali Ke Gunahgar published in Dainik Jagran dated 18-06-2013 has very aptly revealed the following. 1-Rupee has depreciated by 50%. 2-According to World Economic Forum, competitive position of India has declined from 42 in 2006-07 to 56 in 2012-13. 3-Position of infra structure had declined from 62 to 84. 4-Position of power generation had declined from 110 to 144. 5- GDP growth rate had improved from 4.9% in 1997 to 8.4 during the NDA rule. It has now declined to about 4.9% during UPA governance. 6-Share of agriculture in GDP declined from 26% in 1998 to 17% in 2011. 7- Rate of inflation increased from 3.8% in 2004 to 12% in 2010. 8- External debts increased nine times during UPA rule. Did utilisation of external debts reflect in creation of infrastructure and growth of GDP. UPA sponsored failures responsible for poor performance of Indian economy are being listed for public awareness. The word sponsored is used only to indicate that the think tank of the government was neither poor nor innocently unaware of implications and the consequences of their decisions. 1- Higher dependence on external and internal market borrowing as also from RBI (increased circulation of currency notes without ensuring active/ productive role of money) for resource mobilization. When a private party borrows from banks, utilisation of funds is supervised, but this is not done in respect of government borrowing. This princely tradition is to be given up in public interest. 2-No effective action was taken to increase life and quality of currency notes with a view to ensuring efficient note processing and detection of fake currency notes. 3- Heavy budgetary allocations were made for unproductive purposes such as MANREGA .Payment of doles through bank accounts would have been a better option in comparison to payment of wages against bogus work done on use less project such as a little earth work on the already existing shallow village tanks. Purveying of corrupt practices up to village-level with a view to covering entire population is almost complete. 4-Actions were taken, perhaps deliberately against its own well accepted policies. (A) Unauditable schemes involving heavy expenditures were formulated as against the policy of reducing government expenditures and keeping effective control on revenue deficits. Financial responsibility Act was ignored. Annual expenditure of Rs.1, 24, 000 crore proposed for food security will entail a very heavy dose of inflation.. (B) Imports and expenditure of foreign exchange on other accounts as also non-realisation of export bills were allowed to increase. Consequential increase in trade-gap and current account deficit (gap between Import and export) reduced bargaining capacity and caused devaluation of Indian rupee. (C) Subsidy bill increased against the target of phased reduction. (D)License, quota permit raj was re-introduced against the policy of LPG ie liberalization to reduce corruption and red-tapism, privatization to promote competition and globalization to secure a bigger market/ demand for Indian goods and services. Government did not allow competition via transparent auctioning of national resources. Had corruption not been a goal of politicians, administrative reforms would have been ensured right from secretariats to tahsil/development blocks/police stations or even village level. While industrialists were allowed the benefits of global market, farmers did not have similar facilities. Their land was being acquired against their will. (E) Currency as a percentage of money supply is on high side. A study of periodical/ annual rates relating to (1) increase in GDP (2) increase in money supply and (3) increase in general price level will reveal the intentional failures of economic management. Is there any prudence in allowing increase in money supply in proportion to increase in general price level. What is justification for governmental actions aimed at price spiral in the interest of corporate profitability at the cost of public. Government did not intervene in food market even by releasing rotten wheat stocks duly respecting the Supreme court verdict. (F) Disinvestment and re-organisation of Government companies did not get the desired priorities. (G) People get some satisfaction from the services offered by bank employees, but their salaries and pension have been fixed at a lower level in comparison to government employees who have un-necessarily created powers for them selves to exploit public. Standard accounting system has not yet been adopted by government departments. They want salaries of private sectors, but without following their rules and practices for better productivity. (h)Why tempo of highway construction and other infrastructural projects started by NDA government was not maintained, while NDA telecom policy which was correct in initial stage due to low density of connections was continued despite opposition during the changed condition. (I) NDA government policy to connect rivers solely for the purpose of diverting flood water without disturbing naturally required water flow to the sea was not implemented. (J)Why is statutory arrangement not made for bonding supply of materials at the prices assumed in project reports. If this is done before launching the projects, delay, price escalation and scams can be minimised to a great extent. (K) How long only Hindus will be persuaded to keep their families small for the sake of improving their human resources and generating more incomes for more savings and investment. Population policy should be either strictly uniform or statutory arrangement must be made to prevent political transfer of wealth from Hindus to other religious minorities who are promoting fast procreation for Hindu subjugation with an undeclared goal of complete Hindu annihilation. (L)Why is policy of the only governmentally profitable urbanization is not changed to facilitate allotment of plots admeasuring not less than 20,000 square feet with a view to developing housing, production of milk, vegetables fish etc, simultaneously for local needs. This will solve problem of power, sever, water, sanitation, transport etc. Garbage will be consumed by mother earth for better productivity. Urban development Authorities will be required to provide public with only motorable road for the credit and market linked production. Even Kharanja road will be initially sufficient. This type of urbanized village development will generate productive human employment locally. (M) Opposition parties failed to see and prevent the ministers and bureaucrats from converting number one money of public into number two money via number three money (ie bribe, scams, corruptions etc.) Number two money earned honestly, but income tax not paid thereon is not as dangerous as number three money is. Domestic currency is depreciated to promote export earning with a hidden motive of non-realisation of a part of export proceeds. Problem is further compounded when number two and number three money are parked abroad. This prevents inflow of foreign currency and causes decline in bargaining capacity. Depreciation of rupee is promoted also when balances of foreign currency parked in secret accounts are required to be repatriated for political and other non-economic activities. Government promoted depreciation of rupee is beneficial to politicians and exporters at the cost of common public who suffer from all-round stagflation and the need of the increased exports for essential imports and liquidation of the growing external debts. (N)Promotion of foreign investment through share market with out any stipulation for a lock-in period and any provision for a regulated repatriation has created a dismal condition before the country. (O) Why were government employees not empowered to ignore wrong verbal orders of their superiors. With the introduction of level jumping for taking quick decisions, usually three employees sign proposal for a decision. What was difficulty in making a rule to recover losses arising due to wrong decisions of signatories against the established rules or to send them to jail pending court trial for release or confirmation of crime. Government employees should not allowed the privilege available to common man. [email protected]
Posted on: Sun, 08 Sep 2013 07:25:46 +0000
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