Tag Archives: Export Import deficit


Government says it is compelled to reduce subsidies on essential commodities to meet its balance of payment crisis. They laments over the huge budget deficits.They say India can no longer afford to remain a welfare state and must adopt an entrepreneurial government approach.

On one hand Government is announcing free laptops and i-pads to voters and on the other hand they are reducing subsidies to finance their election promises. Is this entrepreneurial govt? Taxpayer’s money are used for paying MGNREGA workers but what assets have we generated in 7 yrs of its implementation. I still see no roads, water reservoirs, etc. developed out of MGNREGA. Is this entrepreneurial govt? Petroleum prices are being increased citing the huge losses made by petroleum companies and reduction of subsidies. But why no one is saying that USA pays 20% more subsidy than India on every essential products. They have money to pay the subsidies. Does Indian govt. is short of money? If yes, then why did they not try to generate money through allocation of natural resources. More than sixty lakh crores have been lost due to various political corruption in 2012 alone (Click Here to know more) and Govt ministers shamelessly says there is zero loss. The Special Economic Zones are being designed to cater the needs of capitalist classes, but what about aam aadmi. SEZ provides zero tax to companies and other benefits at subsidised rates. Mr Kamal Nath argues that this is being done to boost exports. But Mr Nath, please tell that exports through SEZs accounted for only 4% of total exports (2008-09 data) whereas exports through SMEs accounted for about 34.5%. Then who should be provided tax benefits. The capitalists setting up huge industries in SEZ or the common poor people involved in small and medium industries.

Manmohan Singh has suddenly become Manmohan Singham and is keen on implementing reforms. FDI in retail is on top of his cards. But tell me why does he become Singham only when it is the matter of providing benefits to foreign  firms and countries (last time he became Singham during US nuclear deal). Why is he not becoming Singham on the so many rapes being committed in India? FDI in retail is supported by me as it will make the lives of many middle class families in India easy. A bania sells ten rupees cold drinks for twelve rupees citing refrigeration charges, a chemist sells duplicate medicines, an electronics shop sells televisions, refrigerators at high prices (esp. during festive and marriage seasons). Bringing MNCs in this sector will reduce the monopoly of banias and also generate revenues for government since banias never gives cash memos for the items they sell. But citing back end infrastructure development as the main reason of allowing FDI is not digestible. Mr Manmohan Singh is saying that foreign retails will develop storage houses and thus will save food grains from rotting. But tell me what were you doing for past 65 yrs. You have Food Corporation of India for this purpose and you have not been able to construct godowns. A lot of money is wasted every year for this particular purpose and on papers hundreds of godowns are constructed every year, but Mr Manmohan Singh says we need Walmart to construct storage houses for us. Take my advise Mr Singh; shut down FCI and with the money used for paying these idiots salary, build storage houses. Build thousands of them. Very recently Maharashtra farmers were destroying their potatoes produce citing very low prices. Had Indian govt. developed a good network of godowns, they could have bought it from farmers and stored it for future use. But no, govt is more interested in reducing subsidies on LPG cylinders. Fine, the people often going to CCDs. KFCs, McD, etc will not have much problem in paying the non subsidised LPG cylinders but why do you take the plea of lack of money with the govt as a reason for reducing the subsidies? You did not think of this before allotting coal mines at throw away prices to Naveen Jindal and the alike or providing lease of IGI Airport to GMR group (which caused a loss of 166,000 crores).

2014 Lok Sabha polls are coming and since Mr Manmohan Singh’s government policies are very myopic, they can bring Food Security Bill at that time to gather votes. But this bill will again prove to be a big burden on the exchequer and further aggravate the inflation scenario in the country. Mr Manmohan Singh may be having this Bill in mind while announcing reduction of subsidies. The money thus saved through reduction may be used for the Food Security Bill. Who cares for the burden of increase in prices of essential commodities? Certainly Mr Vadra and his high C2C paid friends in DLF do not.

Improving the micro-economic datas of the country is very important, especially when we have a trade deficit of around six lakh crores. But certainly not at the cost of aam aadmi. If govt seriously wanted to bring the economy back on track, it could have done easily by simply auctioning two natural resources of the country – 2G and coal. Six lakh trade deficit could have been reduced to two and half lakh crores.

Its time we should seriously introspect and find a political alternative. Here’s a look of the vision document of Kejriwal’s party:

1.    Lokpal Bill will be brought in within 10 days of the party being voted to power.

2.    People will decide the price of essential commodities.

3.    Any person can lodge a complaint against any leader with the Lokpal.

4.    No beacons on cars of any MPs or MLAs.

5.    All expenditure and fund details to be posted on the party’s website.

6.    All colonial laws on land acquisition to be abolished.

7.    Right to Reject and Right to Recall.

8.    A maximum of 2 years to act on any case of corruption.

9.    Everyone will be provided with good education and good healthcare services.

10.    Farmers will be given good price for their produce.

11.    People will have the right to participate in the formulation of laws and government’s policies.

12.    No government money will be used in any area without the will of the people.

Kejriwal does not promises any Aarakshan or Ram Mandir or Laptops or Berozgari bhatta….As simple as that.

Next time think before you vote. And please vote.


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Posted by on October 12, 2012 in ECONOMICS


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