The Wholesale Price Index and Consumer Price Index which had wide variation, is now looking for a merger. Both of them are into double digits, and the percentage will go tandem with one another. This is an achievement of the Government’s economic and fiscal policies which are headed by Oxford educated Prime Minister, who is a Scholar in modern, ancient, medieval Economics.
Government looks to outside world to stabilize Indian economy. No problem with that. Government wants to bring Foreign Direct Investment in the multi-brand Retail sector, which would bring in invaluable Foreign Exchange, investment, expertise, and increase expenditure of hi-fliers by buying items from these fabulously decorated shops, malls, with good ambience, etc. And, of course, the farmer will get remunerative price for their product. With these noble objectives, why should any body murmur?
Our Government’s policy of import of Crude and edible oil which is in excess of 30% of the total required demand at nil customs duty creates a direct loss of Rs 24,000 Cr. Import/Export of other oils other than Palm oil causes the domestic industry to suffer sustained losses. Three lakh tones of imported palm oil is distributed to Public distribution System beneficiaries with a subsidy of Rs 15/- per Kilo. The total incidence of this benevolence on the exchequer is Rs 450 Cr.
Recently Government hiked the rate of kerosene. 39% of PDS Kerosene is diverted, and 18% of this finds way to adulterate diesel. Mr. B K Chaturvedi Committee found out that the rural use of kerosene has fallen to 40% from 51%. It predicted that only 1% of the PDS Kerosene was used for cooking purposes. The Committee noted a strange phenomenon- 24% rural consumption goes to states where there is 100% electrification Food Security programme is expected to obliterate poverty, as the beneficiaries would get atleast one square meal a day. 100 days compulsory with work at minimum wages is expected to provide stable income to the unemployed. Government should differentiate between unemployment and voluntary unemployment. In India, there are more than 20% of people who have the necessary physical strength and ability and below 40, who abstain from work and prefer to be voluntarily unemployed.
With all these developmental and populist Schemes directed at the poor, downtrodden, the weak, the incidence of percentage of poverty should have come down. But in India, opposite always happens. Every year, after substantial spending of money to the poorer sections of the Society, which no body grudges, the BPL population is going up in geographical progression. The Statistics provided by NCAER, Planning Commission, and the States, there is a wide divergence on the no. of BPLs. There is a mismatch in the figures. What about the audit; is it done only for namesake?
Government announces a Scheme. Course correction midway, Scheme contours are altered. A well intended Scheme conceived for some purpose, if the boundaries are altered the Scheme finds alterations. Then, the intended benefits will not accrue. I am referring to the removal of IT benefit for new SEZ units, new units not yet invested, units not at started commercial production, and many benefits offered to SEZ developers have been withdrawn. Various SEZ are in various state of completion and the units are also about to commence production. All of them will lose the provisions promised. Lack of clarity on the continuation of Minimum rate of Tax to developers and units in SEZ, has stalled work in the various sanctioned SEZ being developed by private promoters.
Now, coming to the retail prices of vegetables which had runaway inflation is still in the danger zone. There is no scarcity in the local production of vegetables in Kerala, as Onam festival is just around the corner, yet the prices have moved up significantly. Tomato prices have doubled over a year(selling at Rs 30/- per Kg against Rs 18/- a year ago), bitter gourd (Rs 34/kg against Rs 26/kg last January), cowpea (Rs 16/kg against Rs 26/kg last year), pumpkin (Rs 15/kg), elephant foot yam (Rs 32/kg), ginger(Rs65/kg),cabbage(Rs 20/kg), carrot(40/kg against Rs 16/kg in January 2010), Drumstick (Rs 20/kg against Rs 100/kg in Jan 2010). In the last year, the price of drumstick was Rs 30/kg (July 2009). Greenchilli is selling at Rs 42/kg against Rs 20/kg in January 2010.
Industrial output in April 2010 grew by 17.6% over what it was a year ago, aided by the boynant recovery in exports. WPI is 10.2%, while food inflation has slightly come down. The Government received Rs 70,000 Cr (Spectrum auctions), advance tax payments (Rs 35,000 Cr). RBI has hiked the two short-term policy interest rates. The impact of RBI’s interest rate signals and the efficacy of monetary transmission needs close monitoring. The banks have adopted a new Base lending rate system. How far it will impact, time alone can tell.
Finance Minister wants to rein in fiscal deficit. All the acts done by the Finance Ministry is guided by defeating Savings growth rate by which inflation will come down. But is he aware of the Nils Gilman’s Deviant globalization theory? 50% of Indian economy is in the hands of people whose wealth is derived from illegal actions which have grown at twice the rate of legal economy. Perils and Opportunism involved in illicit dealings in the financial, real estate, energy, high corruption, stocks and shares, organs, CD disks, piracy, gold, cricket betting, etc. More diverse pattern of purchasing put transactions into buckets which cannot be measured. These funds would invade controlled economy, sending the carefully rehearsed formulas to oblivion. In India, deviant globalization has been active and sends economic cycles off the wheel. Has FM got any stick to beat this with?
Government looks to outside world to stabilize Indian economy. No problem with that. Government wants to bring Foreign Direct Investment in the multi-brand Retail sector, which would bring in invaluable Foreign Exchange, investment, expertise, and increase expenditure of hi-fliers by buying items from these fabulously decorated shops, malls, with good ambience, etc. And, of course, the farmer will get remunerative price for their product. With these noble objectives, why should any body murmur?
Our Government’s policy of import of Crude and edible oil which is in excess of 30% of the total required demand at nil customs duty creates a direct loss of Rs 24,000 Cr. Import/Export of other oils other than Palm oil causes the domestic industry to suffer sustained losses. Three lakh tones of imported palm oil is distributed to Public distribution System beneficiaries with a subsidy of Rs 15/- per Kilo. The total incidence of this benevolence on the exchequer is Rs 450 Cr.
Recently Government hiked the rate of kerosene. 39% of PDS Kerosene is diverted, and 18% of this finds way to adulterate diesel. Mr. B K Chaturvedi Committee found out that the rural use of kerosene has fallen to 40% from 51%. It predicted that only 1% of the PDS Kerosene was used for cooking purposes. The Committee noted a strange phenomenon- 24% rural consumption goes to states where there is 100% electrification Food Security programme is expected to obliterate poverty, as the beneficiaries would get atleast one square meal a day. 100 days compulsory with work at minimum wages is expected to provide stable income to the unemployed. Government should differentiate between unemployment and voluntary unemployment. In India, there are more than 20% of people who have the necessary physical strength and ability and below 40, who abstain from work and prefer to be voluntarily unemployed.
With all these developmental and populist Schemes directed at the poor, downtrodden, the weak, the incidence of percentage of poverty should have come down. But in India, opposite always happens. Every year, after substantial spending of money to the poorer sections of the Society, which no body grudges, the BPL population is going up in geographical progression. The Statistics provided by NCAER, Planning Commission, and the States, there is a wide divergence on the no. of BPLs. There is a mismatch in the figures. What about the audit; is it done only for namesake?
Government announces a Scheme. Course correction midway, Scheme contours are altered. A well intended Scheme conceived for some purpose, if the boundaries are altered the Scheme finds alterations. Then, the intended benefits will not accrue. I am referring to the removal of IT benefit for new SEZ units, new units not yet invested, units not at started commercial production, and many benefits offered to SEZ developers have been withdrawn. Various SEZ are in various state of completion and the units are also about to commence production. All of them will lose the provisions promised. Lack of clarity on the continuation of Minimum rate of Tax to developers and units in SEZ, has stalled work in the various sanctioned SEZ being developed by private promoters.
Now, coming to the retail prices of vegetables which had runaway inflation is still in the danger zone. There is no scarcity in the local production of vegetables in Kerala, as Onam festival is just around the corner, yet the prices have moved up significantly. Tomato prices have doubled over a year(selling at Rs 30/- per Kg against Rs 18/- a year ago), bitter gourd (Rs 34/kg against Rs 26/kg last January), cowpea (Rs 16/kg against Rs 26/kg last year), pumpkin (Rs 15/kg), elephant foot yam (Rs 32/kg), ginger(Rs65/kg),cabbage(Rs 20/kg), carrot(40/kg against Rs 16/kg in January 2010), Drumstick (Rs 20/kg against Rs 100/kg in Jan 2010). In the last year, the price of drumstick was Rs 30/kg (July 2009). Greenchilli is selling at Rs 42/kg against Rs 20/kg in January 2010.
Industrial output in April 2010 grew by 17.6% over what it was a year ago, aided by the boynant recovery in exports. WPI is 10.2%, while food inflation has slightly come down. The Government received Rs 70,000 Cr (Spectrum auctions), advance tax payments (Rs 35,000 Cr). RBI has hiked the two short-term policy interest rates. The impact of RBI’s interest rate signals and the efficacy of monetary transmission needs close monitoring. The banks have adopted a new Base lending rate system. How far it will impact, time alone can tell.
Finance Minister wants to rein in fiscal deficit. All the acts done by the Finance Ministry is guided by defeating Savings growth rate by which inflation will come down. But is he aware of the Nils Gilman’s Deviant globalization theory? 50% of Indian economy is in the hands of people whose wealth is derived from illegal actions which have grown at twice the rate of legal economy. Perils and Opportunism involved in illicit dealings in the financial, real estate, energy, high corruption, stocks and shares, organs, CD disks, piracy, gold, cricket betting, etc. More diverse pattern of purchasing put transactions into buckets which cannot be measured. These funds would invade controlled economy, sending the carefully rehearsed formulas to oblivion. In India, deviant globalization has been active and sends economic cycles off the wheel. Has FM got any stick to beat this with?
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