If the owner/company does not invest capital, workers do not get employment and earn wages. If the workers do not work, owner/company does  not get profit. There are people who think that excess(more than reasonable) profit should be distributed among the workers. Some others think that excess profit is due to the company charging higher than the reasonable price and that prices should be reduced so that the profits of the company are reasonable and the consumers are not exploited. There is yet another view that the government should increase the tax rates or new taxes should be imposed. All the views seem to be correct.The point to be considered and decided is which action will expedite development of the country as a whole. Going by the experience, government getting more taxes is not going to help the country much as benefits of its schemes do not reach the people in full and often result in wasteful and unproductive work. As the number of consumers is too large, the price reduction can only be negligible and the consumers will not feel the benefit.As regards increase in wages/payment of bonus to workers, this will increase demand for products which may lead to higher  production and higher GDP. However, if the workers are already getting reasonable salaries, they should not get additional amount.The only option left is to allow the company to retain the excess profits, so that it can expand its existing factory or set up new factories. However, it should be made clear that new taxes are not imposed only if the profits are used for expansion of the existing factory or setting  up of a new factory, thereby generating employment, increasing production and thus  contributing to the expansion of  GDP of the country..


Growth of Indian economy-focus on consumer durable industry


The growth of Indian economy since the liberalization of the  economy in 1990s is based mainly on construction industry including government supported  roads and airports and on automobile industry. While there is still possibility of growth in construction industry,
including roads, railways, bridges etc. there is not much scope for expansion in auto industry,  as it has almost reached saturation point. Now the country has to think in terms of expansion of consumer durable industry like production of  air-conditioners, washing machines, refrigerators, dish washers, automatic cleaning machines, microwave ovens,domestic water softeners etc. For growth of this industry, the banks have to provide loans to consumers, liberally, in the same manner they had extended loans for buying automobiles including two wheelers and houses as well as purchase of house plots and construction of individual houses. The growth in this industry may last for a decade or two, by which time, there would be need for  construction of new buildings and purchase of new vehicles  for replacement.

Expansion of consumer durable industry will necessitate large scale generation of electricity. Non-conventional energy like  solar energy, wind energy, bio-mass energy, energy from waves etc should be developed which would  lead to further growth of economy





Artificial rain- cloud seeding


In certain parts of Tamilnadu, during June-August,2015,the rainfall has been so negligible that farming operations have not been undertaken. If the rain starts in September, it may in some cases be too late for sowing certain seeds.Even drinking water for humans and animals has become a big problem. In order to ensure timely rainfall, it may be useful to resort to cloud seeding and simultaneously to undertake research on refining the existing technology to achieve lower cost, safety, avoid pollution, avoid lower rains during the period subsequent to cloud seeding. Research by as many universities as are willing should also be funded by the government. Cloud seeding is not new to Tamilnadu, as it had already undertaken several times in the past starting from 1960s in Nilgiris district, though there was a long break after 1960s. Several countries, particulary in Asia like Thailand, China etc are resorting to cloud seeding. Each district should have one organisation to udertake this operation. It can be a public or private organisation.

Elimination of corruption- Need to change rules, regulations, procedures


Being part of the society, the political and bureaucratic functionaries have the same level of honesty, integrity, efficiency, devotion to duty etc. as the common people of the society. The common person in general is honest only because he/she has no opportunity to be corrupt. When he/she has the opportunity to be corrupt, he will almost definitely extract bribes by any way. The example is the opportunity for the common people to vote, for which bribe is reported to be demanded/accepted. So, if the corruption in government is to be eliminated, the society should first be made honest. But this is not easy.

But corruption cannot be allowed to be continued. The situation of absence of corruption can be achieved only by eliminating apportunities for corruption. For this, there is need to amend the rules and procedures. For example, in all the cases, single window system should be adopted. This means, the applicants for licences, approvals etc. need to apply only to one authority. This authority should seek “no objection certificates” from others wherever necessary. Again the denials/delays in extending services should be explained by the concerned authorities to their seniors and to the applicants or their nominees. All communications between he authorities and the applicants should be through mail/email so that the chances of authorities asking bribe from applicants are eliminated/reduced. Government should also in most cases accerpt affidavits and undertakings from applicants instead of asking for proofs and certificates from various other authorities.

The system of rewarding employees in a routine manner should be replaced with merit system. No employee should be given increments and promotions unless he does good work and is honest. Promotions should not be on the bassis of seniority but on the considerations of merit and honesty.

If the above changes are made in the rules and procedures, corruiption can be eliminated to a large extent.

Corruption- elimination of


Corruption at official level can be eliminated if office procedure is modified. If applicants are asked to send applications by post(also by email, fax etc.) and the officials seek additional information etc by correspondence and applicants also supply information etc. by post chances for corruption will be removed. There should be no personal contact between officials and applicants.
If a matter requires “No objection certificates” from other offices, the approval issuing officials should get the same from other offices and the applicants should not be asked to approach different offices. If it is felt that government should not take additional work and appoint additional staff, the services can be charged/charged extra and the additional expenditure can be met from the charges/additional charges for the services.

Reforming state transport corporations-case of TNSTC


The government owned Tamilnadu State Transport Corporation and the State Express Transport Corporation with a fleet of about 20000 buses incur loss of around Rs.1000 crores per year. For the benefit of the corporation/government as well as the commuters, buses should be leased at a moderate rate of  around Rs.1000/ per bus per day. The preference should be given to existing drivers and conductors. For around 20000 buses, the government can earn about Rs.750 crores per year against loss of about  RS.1000/- crores. The lease income should be used to provide more amenities to the passengers like providing adequate space for luggage, fans, drinking water,, cleaning the buses at intervals of 8 hours, providing first aid kits at buses, fixing doors at entrance/exit points etc and for buying new buses. The lessees could also be permitted to earn revenue by running advertisements in the closed circuit TVs, written advertisements, collection and delivery of small packets of luggage etc.. The lessees will be allowed to fix bus fares themselves subject to a maximum rate to be decided by the government. They can also be permitted to fix variable rates- different rates for peak hours , lean hours, day time, night time etc.

When the fares are raised substantially, the lease amount can also be raised.

Bihar,least developed major state


Among the major states, Bihar is the least developed state. The main problem is the excess population and high population growth rate. While population in the 0-14 years age group, developed states have only about 25% of the total population, in Bihar it is 35%. The active working age people are in the age group 15 to 59. In this age group, developed states have over 65% of the total population, while in Bihar it is only about 55%. Bihar should give high priority to population control. Otherwise it will be impossible for any administration to develop the economy.

If Bihar is to catch up with the rest of the states, it should make people work as much as possible. Since the number of workers is proportionately less in Bihar, as a short term measure, the employees should be asked to put in an extra hour work i.e. 9 hours a day against 8 hours in other states.

Work should be provided to all able bodied persons. Till adequate number of factories are established, the existing factories should be asked to work 3 shifts a day. Government should establish factories and transfer ownership to the industrialists later.

Government should not hesitate to hold referendum on important domestic issues


Government should not be shy of holding referendum on very important domestic issues on which people have strong views like the following:

1. Whether government should go ahead with the nuclear power plant in Koodankulam,Tamilnadu.The referendum should be restricted to the areas surrounding Koodankulam.

2. Whether Prime Minister should be included in the Lokpal jurisdiction.This should be the country wide referendum.

3. Whether Telangana should be a separate state.This referendum should be restricted to the people of Telangana.

4. Whether death penalty should be abolished.

It may be pointed out that in Hong Kong referendum was held on whether certain area of the sea should be reclaimed for building road on it.

The country’s size should not be a problem for holding referendum as this can be done online.While in the beginning not many people will be able to use the online facility,as the days go by the response from the people will be as good as to the voting in the elections.
The referendum should however not be extended to issues which touch on the integrity and unity of the country.

Black Money- Government powers are limited


A lot of discussions,meetings, agitations etc are taking place in India asking the Government to bring back the black money of Indians to India. In this connections,there appear to be the following constraints

1. the money belongs to individuals In he normal course, only the owners can take the money from the banks, though the government can explore possibilities of freezing the accounts etc but then the government should have details. individual depositors or foreign banks will not disclose the details.

2. The money is not with the foreign governments It is with the banks in foreign countries. Government of India can only negotiate with the foreign governments and not with the foreign banks as the banks would not negotiate with any one except the depositors Foreign governments may not be able to interfere with the banks without enacting new laws.

3 even if foreign governments enact laws to empower themselves to ask their banks to transfer the money to any bank in India, the foreign banks may not agree. the banks may go to the courts. courts will take into account the laws in existence at the time of deposit of the money.

From the above, it appears that it may not be easy for the government to bring the black money to India. But the government can certainly encourage those who have black money abroad to bring the same to India, by waiving punishment, penalty and also offering lower rates of tax. For example government can announce that the black money can be transferred to India and that those who transfer would need to pay tax of only 20% or 25% and that no questions would be asked. Since the deposits in foreign banks carry no or very low interest, most of the depositors would be willing park their money in Indian banks which pay nearly 10% interest.Unlike in the past,foreign exchange is easily avialable for all legitimate purposes. And also as the Indian Rupee is fairly stable, there is no particular advantage for majority of the people to keep their money abroad. Considering all these,some depositors may not mind paying a penalty/higher tax of 35% or 40% or even more)