Rs, 20,00,000 economic package

04/06/2020

ECONOMIC DEVELOPMENT

Rs.20,00,000 crore economic package is a bold and welcome decision and this may lead to vast economic development of India and the GDP is sure to register substantial increase.

I think that the present difficult situation may be used to create permanent assets by spending Rs.15,00,000(fifteen lakhs) crore by undertaking large scale infrastructural projects like;

  1. Deepening lakes and dredging dams and rivers wherever required, to hold additional water.
  2. Linking lakes with rivers and removing all obstacles in rainwater reaching the lakes
  • linking of intra-state rivers(linking of interstate rivers can also be explored with the consent of states)
  1. widening single lane roads into two lane roads, double lane roads into 4 lane roads and 4 lane roads into 6 lane roads
  2. laying railway lines and doubling or tripling railway lines
  3. establishing solar and wind power generating units.(India may need more electricity.)

The above mentioned works can be undertaken under Mahatma Gandhi Rural Employment Guarantee Scheme by suitably modifying the scheme.

Out of Rs.15 lakh crores, an amount of Rs.10,00,000 crores can be allotted for payment of wages for unskilled workers. Regular full time employment can be provided from this fund at the wages of Rs.5000/-(five thousand) per head per month. This amount can meet the wages of 16 crore unskilled workers for one year. ( 10,00,000 crore/5000 X12 ) This accounts for roughly 25% of all able bodied persons in the country(excluding children, senior citizens, handicapped and sick people. This may eradicate unemployment among unskilled workers in the entire country.

Balance amount of Rs.5,00,000 crores can be used for purchase/hiring of equipment, temporary residences ,transport etc. and for payment of salaries for skilled workers, Engineers, Supervisors etc.

The irrigation work may lead to increase in agricultural produce. Industries like textiles, building materials, transport equipment etc. may also see  increased demand for their products.

This Rs. 15 lakh crores may lead to production of assets/products valued at least twice the expenditure viz Rs.30 lakh crore. This may be about 10-15% of current GDP. If current production is kept at the same level, GDP may go up by 10-15%.

The money could be borrowed from Reserve Bank of India and the debt could later on be monetized.


Indian budget 2020-21- More need and scope for raising resources through public debt

12/02/2020

India is not a heavily indebted country. Gross government debt of some of the developed countries as percentage of their GDP in the year 2017 is given below.

Japan                          223.8

I

Italy                            131.2
Singapore                  114.6
France                          98.5
U.K                                87.0
U.S.A                             82.3
Germany                      64.1
India                             50.1 This has since gone up

It appears that the developed countries have developed by mobilising the funds with the private sector for developmental activities.India could also develop fast by using the funds available with public by incurring debt and also by encouraging private sector to invest in developmental activities.The budget for 2020-21 shows total expenditure of Rs.30 lakh crores against revised budget of Rs.27 lakh crores which shows an increase of only about 10% . If we take into account the likely inflation of about the same percentage, there is in real terms no increase in expenditure. The welcome thing is that private sector is being  involved in developmental activities.

There is scope for increasing borrowings in 2020-21 from around Rs. 8 lakh crores to at least Rs.20 lakh crores

                                                                                                                                


Redistribution of powers of state and central governments in India

30/06/2019

In India some of the states are very big  in population. UP is as much populated as the 5th or 6th most populated country in the world. States like Bihar, West Bengal, Maharashtra, Madhya Pradesh, Rajasthan and Tamilnadu may rank among the top 20 most populated countries. Being constituents of a country, the states cannot have as much powers as the countries.  However they should have as much powers as the states in United States of America or any other country. In India the Constitution gives the subjects over which the Parliament i.e.Central Legislature has exclusive powers to legislate(Union List), subjects over which  States have exclusive powers(State List) and subjects  on which both Parliament and State Legislature can legislate.

With a view to widen the powers of the State Legislatures or Assemblies, commensurate with their size, there is need to set up a Committee to examine the subjects which could be brought into the State List from Union and Concurrent Lists

 

 


reducing/eliminating unemployment

15/04/2019

Indian political parties seem to think that government can do everything including creation of of jobs on its own. But this is not possible. Government should involve the rich people who can invest their money in establishing factories, business establishments, service establishments etc which can provide jobs to the people, produce goods and services and thus increase the GDP of the country.If the country is to develop, there is need for capital which rich people can provide, there is need for workers who can work, there is need for services like transport, electricity, trade etc.which service establishments can provide. Therefore it is necessary to have harmonious relationship between different contributors and effective coordination. The government’s contribution in economic development should be indirect in the form of facilitation, concessions, infrastructure development. Government’s priority should be improvement in law and order situation, provision of social security and similar things.


Obsession with non-interference in internal affairs of other countries

02/04/2019

In foreign policy, India follows a policy of non-interference in the internal affairs of other countries. This is good when the internal affairs do not cause serious concerns to a civilised society. For example when there is internal war in a foreign country leading to genocide,to poverty,starvation, absence of freedom of speech,assembly etc, imposition of dictatorship etc. India and international community may perhaps not stand aloof. It is perhaps time, for the policy framers to engage in open discussion on the circumstances under which India can take note of the internal affairs of other countries and act, of course involving the United Nations,international community in this exercise.


Election promises of Indian political parties

28/02/2019

Most of the political parties whether national or regional, in their election promises speak of freebies i.e. things they would distribute freely if elected or cash they would distribute but they do not speak of providing full employment to all able bodied persons with salaries sufficient to have a decent life with all essential requirements. In fact, unemployment is the only problem of the country. Once everyone is employed, most of the social and economic problems
will be solved automatically


Unemployment and crime

10/02/2019

Most of the crimes which are committed for money are committed by the unemployed people. Hence with increased employment opportunities, crime will come down. Creating jobs is one way of curtailing crime rate, making life safer and happier for the people.Governments can give grants to the industrialists and businessmen who create regular jobs with a view to encourage them. Governments can undertake infrastructural and irrigation projects, set up research institutes-scientific, industrial, social,economics.


Atomic energy

12/12/2018

India is supposed to be having expertise in space science, atomic energy and ocean science. Very often one gets news of the space programmes. Of late, there is not much news about the activities of the department of atomic energy and the institutes of this department. Similarly there is no news about the programmes in ocean science. There appears to be vast scope for development in these three sectors. These three branches could coordinate and take up research in modifying weather with a view to prevent floods and drought, moderate heat and cold etc.


Couplet-fate

09/07/2018

Everything happens according to a person’s fateb
Do not illtreat anyone or hate


Reporting by the media

02/07/2018

Of late one reads/sees mostly negative news like accidents,thefts, kidnappings,murders, cheating, corruption negligence and news like developments in Socio economic field,science and technology, industry etc is limited.
This leads pEople to lose theìrj confidence, give up thèir initiatives and ambitions and the country’s negative economic growth. It would be good if the media carefully plans the contents of the news.