Congress in winning mode, India in loss making mode.
Congress knows how to win election but will never learn how to progress the nation, probably they dont want. Keeping majority poor is best way to win election, as a matter of fact in spite of 50+ years of Independence we are still poor and the perfect remedy to keep people poor is to feed them (don’t teach), Congress has mastered this art.
The 2009 elections were won because of Farm Loan Waiver scheme and its no brainer, when you implement an idea just to to win an elections, its bound to fail. This may not truly be a fraud as Firstpost reports but we must question the real intention, “It does have an element of fraud but so small in comparison to Coalgate and 2G that its being considered negligible.
8.5 percent of those who got waivers were not eligible for it. This is where the scheme has the whiff of a scam, but it is not huge. Even when extrapolated over the entire Rs 52,000 crore writeoff mentioned by CAG, the amount involved would be around Rs 4,420 crore. Peanuts, compared to 2G or CWG or Coalgate.
To win 2014 elections Congress has come with Direct Cash Transfer and Food Security Bill, perfect solution. These two schemes are populist and will give instant benefit to the end user but a doom from long term perspective, in stats, the total food subsidy to cover expenditure for its Food Security Bill is expected to be 1.3 lakh crore.
Economic time reports; The UPA government’s food Bill is a piece of political excess that is likely to put additional strain on the exchequer, push up the price of food outside the public distribution system and create perverse incentives that would distort the labour market even further.
All this is being done when we know the reality of our public distribution system ?
One of the biggest question the government must answer is from where will the money come for these welfare schemes, Indian tax payer shouldn’t be penalized for populist decision. WSJ Reports – Government officials say the rollout of the law would increase food subsidies by an additional 200 billion rupees ($3.6 billion) to around 1.2 trillion rupees ($22 billion) in the next fiscal year beginning April 1.
The recent federal budget has earmarked only about 100 billion rupees ($1.8 billion) for the program, but the amount may be sufficient as the law is likely to be approved only in September and therefore would require funding for about six months next fiscal year.
While India’s fiscal deficit is touching 7%, should we first focus on getting the economy in shape and then start looking at freebies.
Isn’t it important to create an environment more employment, push manufacturing reforms, let people acquire new skills, create a environment for entrepreneurs and get people jobs ?. Cant we win elections based on ideas of new India ?. This entire energy and investment done to push direction cash transfer and food security bill can easily be diverted towards having a far reaching impact. Alaas, I am speaking about party which has “Aam Admi” on forefront and to maintain it they need this “Aam Aadmi”.
Posted on March 23, 2013, in Indian Democracy, Random and tagged economy, government, India Fiscal Deficit Economy Loan Waiver Scheme Direct Cash Transfer Food Security Bill, politics. Bookmark the permalink. Leave a comment.