See you there!
Thursday, 16 October 2008
Thursday, 6 March 2008
A prayer, a message for my Almighty
If only God reads my wishes devoted to him -
Bless me God with your presence in my heart,
Bless me God so I draw closer to You,
Bless me God for being one with You.
Let me renounce my desires,
Let me seek happiness in serving you my Lord.
As the day begins, You show me the right way
And as the day ends, I pray to you Lord,
Forgive me for all my sins; and teach me the right.
But at all times keep me close to you God,
With you I find my life a beautiful miracle!
Bless me God with your presence in my heart,
Bless me God so I draw closer to You,
Bless me God for being one with You.
Let me renounce my desires,
Let me seek happiness in serving you my Lord.
As the day begins, You show me the right way
And as the day ends, I pray to you Lord,
Forgive me for all my sins; and teach me the right.
But at all times keep me close to you God,
With you I find my life a beautiful miracle!
Tuesday, 4 March 2008
The Union Budget 2008
Here comes the Union Budget once again! Once the most awaited, most eventful time for most Indians - now uneventful - unless of course elections are around the corner. The politicians seem to break their minds well just before the elections and know how to win the "aam aadmi" votes. Reducing personal income tax was indeed a welcome move - however it just went against the monetary policy and the Congress party's motto of "aam aadmi's Government". The populist Budget has given relief of Rs 65k crores to farmers - well how many "poor" farmers REALLY benefit from this move and how many rich farmers benefit, we'll leave that to Almighty.
The Congress and the Reserve Bank jointly have refused to reduce the interest rate in India - for a simple reason that inflation should be controlled - aam aadmi should not bear the brunt of rising prices. So while the entire world has interest rates ranging from 2 to 8 % , India stands alone at more than 12% since years! America's sub prime crisis has forced it to reduce the interestt rate to 2%. However, India's monetary policy does not heed to this. We want our interest rate be high to curb inflation. So the dollar keeps depreciating against the rupee and India gets flooded with dollars, thereby destroying the export as well as the IT industry completely. Secondly, in the process of curbing flow of money in the economy via high interest rate, the Reserve Bank seems to oversee two factors - one : restrict the economic growth by restriction in money flow due to high interest on capital borrowed ( a necessary step to some extent to reduce excessive money in the economy); two : allow more money flow in the hands of investors who by way of higher return on their investment. A complete viscious circle in itself, there must be critical analysis to be undertaken while deciding the interest rate. The best way to curb inflation other that interest rate hike would be through increading the supply of goods in the economy. If not, then increase the CRR and SLR for the banks, increase the direct taxes and decrease the indirect taxes like custom duty and excise duty on oil and other oil products. The government should issue treasury bills and G secs to suck the money out of the economy. However, there are always less chances of custom and excise duties to be reduced since the government won't get it's share of income to pay to our dear politicians. Reducing income tax is a populist move to win the upcoming elections! However, with our government very adamant in reducing the interest rate; the country's economic has become a secondary issue. They reduced the income tax so that there is more expendable income which will help to usher growth. But how far can this hold true? There is acute shortage of supply of goods and services - leading to rise in prices and therefore inflation. I agree easier said than done. It's easy for me to write and an amazingly difficuly decision to take as a FM. But somewhere, India's monetary and fiscal policy should match vis-a-vis the world's polcies.
By giving waiver to the farmer's loan, the country's financial critics have been tight lipped. For if anyone criticises the budget; the world will rise against him, pointing fingers with a view that the person is not favouring the poor man's plight. It's good to know that the FM has taken steps to promote agriculture; however, a temporary solution by writing of loans as they were NPA, does not solve the farmer's plight. Better irrigation, equipments, 24 hours electricity, other infrastructure is what they need. Our farmers in the rurual areas suffer from 10 to 12 hours loadshedding - they are unable to water the crops! Irrigation facilities are left incomplete - or they are sub standard as the contractors and the government bodies breed in corruption. Money lenders ever since born are probably taught to be harsh, cunning and cruel to the poor. Rural areas are the same pre-independence and post - independence. It's a relief to see that Reliance Retail, ITC e-choupal, Birlas, Tatas, Monsanto, Syngenta and other numberable corporate are extending knowledge and aiding in the upbringing of the farmers in realistic ways.
Very often, FM will announce a populist budget before the elections just to ensure they win the seat. Our politicians are here only for power and not to serve the country. Unfortunately, this message remains among the well educated class of citizens - the poor, I sympathise, has no means of understanding the complexities involved with politicians motives. The still believe Indira Gandhi is alive in many parts of the country in North! If there are true politicians, they exist in corporate India - by way of social responsibility, they have helped Indian rural areas.
2% Education Cess and 1% Secondary and Higher Education Cess on all taxes and duties - for improving our educational systems. Yet, decades later we still have IITs and IIMs which even a nursery kid can count. I was surprised there is no Primary Education or Nursery Education Cess in the Budget. I would have appreciated the Cess had there been some improvements in our educational systems and literacy. Quantity of people knowing to read and write is not the only factor that should be included in the literacy rate - the quality of education and the ability to use education in practical scenario should be included in the literacy factor. These cess would be useful if the beggars stop hogging all the money unethically.
At the end - the story has a sad end - the budget has nothing in hand for us! The aam aadmi will thereby remain an aam aadmi and the politicians will continue to grow as bade ameer aadmi. Aam aadmi will pay taxes and duties and yet suffer poor quality of life at the expense of the politicians.
PS : I think Congress has done a good job to keep the opposition away from criticism by waiving off the loans and making its seat secure for a mid term poll ( if the N Deal is signed!)
The Congress and the Reserve Bank jointly have refused to reduce the interest rate in India - for a simple reason that inflation should be controlled - aam aadmi should not bear the brunt of rising prices. So while the entire world has interest rates ranging from 2 to 8 % , India stands alone at more than 12% since years! America's sub prime crisis has forced it to reduce the interestt rate to 2%. However, India's monetary policy does not heed to this. We want our interest rate be high to curb inflation. So the dollar keeps depreciating against the rupee and India gets flooded with dollars, thereby destroying the export as well as the IT industry completely. Secondly, in the process of curbing flow of money in the economy via high interest rate, the Reserve Bank seems to oversee two factors - one : restrict the economic growth by restriction in money flow due to high interest on capital borrowed ( a necessary step to some extent to reduce excessive money in the economy); two : allow more money flow in the hands of investors who by way of higher return on their investment. A complete viscious circle in itself, there must be critical analysis to be undertaken while deciding the interest rate. The best way to curb inflation other that interest rate hike would be through increading the supply of goods in the economy. If not, then increase the CRR and SLR for the banks, increase the direct taxes and decrease the indirect taxes like custom duty and excise duty on oil and other oil products. The government should issue treasury bills and G secs to suck the money out of the economy. However, there are always less chances of custom and excise duties to be reduced since the government won't get it's share of income to pay to our dear politicians. Reducing income tax is a populist move to win the upcoming elections! However, with our government very adamant in reducing the interest rate; the country's economic has become a secondary issue. They reduced the income tax so that there is more expendable income which will help to usher growth. But how far can this hold true? There is acute shortage of supply of goods and services - leading to rise in prices and therefore inflation. I agree easier said than done. It's easy for me to write and an amazingly difficuly decision to take as a FM. But somewhere, India's monetary and fiscal policy should match vis-a-vis the world's polcies.
By giving waiver to the farmer's loan, the country's financial critics have been tight lipped. For if anyone criticises the budget; the world will rise against him, pointing fingers with a view that the person is not favouring the poor man's plight. It's good to know that the FM has taken steps to promote agriculture; however, a temporary solution by writing of loans as they were NPA, does not solve the farmer's plight. Better irrigation, equipments, 24 hours electricity, other infrastructure is what they need. Our farmers in the rurual areas suffer from 10 to 12 hours loadshedding - they are unable to water the crops! Irrigation facilities are left incomplete - or they are sub standard as the contractors and the government bodies breed in corruption. Money lenders ever since born are probably taught to be harsh, cunning and cruel to the poor. Rural areas are the same pre-independence and post - independence. It's a relief to see that Reliance Retail, ITC e-choupal, Birlas, Tatas, Monsanto, Syngenta and other numberable corporate are extending knowledge and aiding in the upbringing of the farmers in realistic ways.
Very often, FM will announce a populist budget before the elections just to ensure they win the seat. Our politicians are here only for power and not to serve the country. Unfortunately, this message remains among the well educated class of citizens - the poor, I sympathise, has no means of understanding the complexities involved with politicians motives. The still believe Indira Gandhi is alive in many parts of the country in North! If there are true politicians, they exist in corporate India - by way of social responsibility, they have helped Indian rural areas.
2% Education Cess and 1% Secondary and Higher Education Cess on all taxes and duties - for improving our educational systems. Yet, decades later we still have IITs and IIMs which even a nursery kid can count. I was surprised there is no Primary Education or Nursery Education Cess in the Budget. I would have appreciated the Cess had there been some improvements in our educational systems and literacy. Quantity of people knowing to read and write is not the only factor that should be included in the literacy rate - the quality of education and the ability to use education in practical scenario should be included in the literacy factor. These cess would be useful if the beggars stop hogging all the money unethically.
At the end - the story has a sad end - the budget has nothing in hand for us! The aam aadmi will thereby remain an aam aadmi and the politicians will continue to grow as bade ameer aadmi. Aam aadmi will pay taxes and duties and yet suffer poor quality of life at the expense of the politicians.
PS : I think Congress has done a good job to keep the opposition away from criticism by waiving off the loans and making its seat secure for a mid term poll ( if the N Deal is signed!)
Tuesday, 26 February 2008
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