With a view on the upcoming budget, i thought to write on the importance of infrastructure in our country, both social i.e education, health etc and physical; roads,railways etc.
For an optimist Indian, jammed roads, crowded airports, full internal flights and booked out hotels are the signs of a growing economy at a robust pace. At the same time it also brings home the reality, that is, the poor infrastructure scenario.
Why it can’t be done?
Why do our new generation fear? Why don’t they try to think about others, rather them themselves? Why can’t our country prosper? As our professor said, “People tend to think about themselves first, then family, religion, caste, state, country, planet”. This country has no dearth of human intelligence which is the most important asset for any country, why can’t it be utilized properly. Why is the right environment not provided to them to flourish? Why do we still lag behind? The answer lies in some radical minded people who for their own vested interest exploit others and the country. The menace of this disease is so deep-rooted that people have lost faith in it. The only answer is, “nothing can be done”.
In this blog we will not just discuss money but we will keep it sprinkled with the spices of variety and all that is important to know. So Money and things are your way.
The weekend kept Shashi Tharror in the news this time for commenting on the Nehruvian Foreign Policy. But in a democratic country we must look beyond these incidents not as a controversy but as an Individuals point of view. Well Freedom of Speech is the basic right in the idea of Democracy.
Last week indices all over the world ended on a positive note. Indian benchmark index, the BSE Sensex closed with the gains of 0.4%. It remained amongst the lowest gainers the reason was the uncertainty surrounding the interest rates and the Indian government’s anticipated policy actions to curb the menace of inflation. The bells ringing at nine did not turn out to be so merry for the Indian stock markets. For the year the midcaps are expected to keep up the stakes rolling. Looking at the Global Markets Brazil and Japan was amongst the highest gainers this was led by positive US retail sales data. The Crude and the cold performed better than the stock markets this week giving a return of 4.3 and 4.2 respectively.
Continuining with what Ankur posted, i thought it will be more relevant to see the overall monetary and fiscal position. So i tried to delve in the issue and tried to find out what needs to be done on both the front. Loose fiscal policies are hurting the fiscal position while a tighter monetary policy might risk growth. Last week, finance secretary came out with a statement that too much of stimulus is injurious to health. This indicates the view from some quarters that it is time to withdraw the stimulus. However i feel that the withdrawal of the stimulus should be gradual and in a phased manner, in order to ensure sustained economic recovery.
In the next month we will have new budget where government will try to impact fate for the next year. Recently came across an article where it was mentioned that auto mobile sector showing continuous rate of growth especially in the year 2009-10.Read in Brand Wagon by financial express, Pawan Munjal saying “The calendar year 2009 has indeed been our best ever performance”. I tried to find out why every auto company was showing growth in last two quarter.
I found out that this is basically measure taken by both governments fiscal and monetary policy. Excise duty for automobile sector cut from 12% to 8% and interest rates were low in the same period which provides adequate finance to the customer.
Then I questioned does the time has come that government should gradually cut fiscal stimulus to these sectors which are showing continuous growth rate. I think time has come because if we look at the government fiscal deficit which is as high as 6.8 per cent where as FRBM recommends it should be around 3 per cent. This figure 6.8 per cent does not include state deficit, oil and fertilizer subsidies. If we include them it will be around 11 per cent. A developing country cannot afford to have such a high amount of deficit on a continuous basis. Even though RBI had start taking its Exit route from the subsidized interest that it provided to specific sector in the time of recession.
