Saturday, June 30, 2012

WINSTON CHURCHILL'S PROPHECY ABOUT INDIA'S FUTURE!!!!!!

Way back in 1947, as the British left India, Winston Churchill predicted the following:
"Power will go to the hands of Rascals, Rogues, Free loaders & Charlatans...
All Indian Leaders will be of low calibre & men of straw...
They will have Sweet Tongues & Silly Hearts...
Giving false promises will be their game with the poor & stupid masses...
They will be Shameless & Unpatriotic in their ways while handling problems of the people...
They will fight amongst themselves for power & India will be lost in political squabbles...
Justice will be a joke...
A day will come when Air, Water & even Common Salt will be taxed in India..."
Current political and social trends indicate that he was spot on in his prophecy... Today, this is exactly what is happening in our Country...
LET’S ALL PRAY FOR WISDOM TO BE BESTOWED ON ALL INDIAN CITIZENS TO HAUL UP THE COUNTRY FROM THE MIRE OF THIS MURKINESS!!!
Disclaimer: Adapted as it is from one of the chain mails in circulation. This has been blogged for its partial reflection of the current political and social environment in India, though the blogger firmly believes that Winston Churchill’s name might have been deliberately used to spice up the interest among Netizens.  

Thursday, June 21, 2012

SINKING ETHICS & MORALS



Disclaimer: Adapted from one of the chain mails in circulation.

Friday, June 15, 2012

ANDHRA PRADESH BY-POLL RESULTS: A REFLECTION OF DETERIORATION OF ELECTORATE’S MORAL VALUES

Andhra Pradesh (AP, India) by-poll results have shown the apparent weakness in the institution of Democracy. It has shown that the Democracy can easily be compromised and incessantly abused for electoral politics and personal gains by corrupt few by manipulating a few hundred thousand (applicable in a multi-party electoral system) of MOB-VOTERS, who are ignorant, foolish and short sighted citizens lacking long term vision and empathy for their future generations. Unfortunately, these mob-voters, through wrong use of their voting rights, are paving a path for apparently corrupt and shady leaders to get elected to vital power centers, thus perilously compromising the social and economic security rights of majority of their fellow citizens. This is akin to handing over the security keys of defense arsenal and public treasury to dacoits.  
Democratic system in its noblest form represents equality, freedom and security for every citizen of a nation. However, the system had been shoddily abused in the last few decades by a few self centered politicos for power and material gains, in some of the following methods.
1.        Henry Louis Mencken quoted a century earlier that “Democracy is the worship of Jackals by Jackasses”.  A few individuals and couple of political families have diligently converted Democracy in to a form of worship of individuals and their dynasties, thus weakening the democratic system, institutions and its processes.
2.       Pluto quoted a few centuries earlier that “Democracy is a charming form of government, full of variety and disorder, and dispensing a sort of equality to equals and unequal alike”. Unfortunately, some of the politicians have created social chaos and unfathomable divide in the Indian society by advocating unjust social and religious reservations and quotas, which have eroded the unity and ethics in the Indian public. These apart from other short sighted social and policy measures stalled the country’s economic and social progress.
3.       An anonymous quote says “The democracy will cease to exist when you take away from those who are willing to work and give to those who would not”. Precisely, this was proven in the past in some other countries. All political parties, irrespective of their political and economic ideologies had never tried to get to the crux of the social and economic inequalities. Instead, they pursued the short sighted electoral politics by relying too heavily on non-revenue expenditure to appease the masses, which has in fact made the socially and economic weaker sections more dependent on the government rather than being self-dependent, which may ultimately lead to a massive social unrest, which is detrimental to the country’s future.
4.       Another anonymous quote says “Democracy means government by the uneducated, while aristocracy means government by the badly educated”. Successive governments have never made genuine efforts to thrust upon  vital aspects of compulsory education and population control on both the socially and economically backward masses and the elected representatives, which otherwise could have narrowed down the social and economic divide thus strengthening the Democratic systems and institutions.  
5.       Apparently in the last decade, with the advent of coalition politics, political games played by some politicos are resulting in numerous elections and by-elections, which are significantly held at great cost to the state. Repeated electoral processes involve considerable deployment of human and financial resources to non-developmental activities, thus decelerating the social and economic growth of the state as well as the nation. This unfortunate development has ensured that Andhra Pradesh, which was one of the most progressive states a decade earlier, has been lagging behind the other states, in the last few years.   
It is high time for both mob-voters and rogue politicos to realize that Democracy is much more than just two wolves and a sheep voting on what to have for dinner.
The beauty of Democracy is that the country’s DESTINY is always commensurate with its’ voters’ wisdom and democratic values.

Tuesday, May 8, 2012

PLAGIARISM CLAIMS & MEDIA SENSATIONALISM

Entertainment and fashion industry has immense potential to catapult a person from obscurity to a celebrity overnight often with very huge commercial stakes. Unfortunately, the yearning for success is so great that it can subject some people to pursue ignominious paths to success. The ignominious paths to success can vary from plagiarism to twisting the media to their advantage to gain cheap publicity.
The fashion trends have changed so as music, literature and movie contents. No wonder the internet revolution, technological developments, unrestrained cross border movement and exposure to overseas entertainment avenues and fashion products, has relegated purely ethnic Indian arts and products to back seat and buoyed some fusion trends in every “artistic” field. Unfortunately, innovative ideas required for new music, literary writings, movies and products has been attenuating due to which artists, either consciously or unconsciously  are progressively influenced and inspired by each other’s works and are resorting to tweaking and mixing to generate new products. In fact, various new trends form International and domestic fashion shows and entertainment subjects from umpteen movie and music festivals across the world have become a source of inspiration for many artists in their new works, which is construed as plagiarism by a few genuine artistes. Incidentally, an indistinct line separates the zones of inspiration and plagiarism. Plagiarism in performing arts, literature and fashion industry, most times, is willful adaptation and at times be pure coincidence.
Based on numerous case studies by experts and historical legal battles, it is highly complex to impose Intellectual Property Protection to these businesses since the diverse technical perspectives involved with these products cannot be legally corroborated. Hence, for some original artists, writers, producers and designers, plagiarism is something they cannot fight, and consider it to be a tribute to their intellectual skills by their peers.
Despite of the fact that plagiarism battles are hard to be won, some of the artists or agencies seem to be raking up these issues to gain some cheap publicity, for which print and visual media is virtually aiding in their enthusiasm to create some sensationalism and increase their TRP ratings. Plagiarism allegations in India are getting weird as they come in just before a movie’s release or during the premier of a TV show. Such surreal allegations are becoming habitual and people are perplexed with the “free publicity beneficiary” (Is it the accused or accuse?) behind such media blitzkrieg. Here is a list of latest plagiarism allegations which either decayed naturally or were withdrawn later by the “Accusee”.
a.       Music plagiarism was alleged by reputed folk singer for a song in super hit Telugu film “Magadheera”. It is still a million dollar question as to how the media sensationalism died down instantly after the film became a super hit.
b.       Music plagiarism was alleged by a budding singer & composer against the music director of TV show “Satyameva Jayathe” just ahead of its premier show with regards to its title song.
c.       Iranian band Barobax sent a legal notice to "Agent Vinod" music composer Pritam, during the pre-release of the film alleging plagiarism. However, the film was a disaster at the box-office. Subequently, Iranian band Barobax apologized to Pritam.
d.       Mumbai based writer has filed a case of plagiarism against the filmmakers and writer of film 'Jannat 2' during the film’s release alleging that they stole his story in which characters, plot and the dialogues were very similar to his own script. It is yet to be seen who the beneficiary is!
The mute question in this era of “PAID NEWS” is: Is such a media Blitzkrieg necessary on such menial and legally fragile issues?

Friday, May 4, 2012

ANTI-INDUSTRY TIRADES IN INDIA

Indian growth story  of late is seriously faltered by unrestrained population explosion, lack of education and skill levels to majority of its citizens, limited natural resources and short sighted vote bank as well as highly divisive politics by the politicos. Unfortunately, genuine efforts have been far and few to rein in these impediments of Indian growth story both at the macro level as well as micro level.
Indian financial health could be maintained satisfactorily in the last decade due to the twin factors of growth of its GDP at the rate of 7 to 9% and high savings rate of its Citizens, despite constricted tax net and heavy non-revenue expenditure that includes heavy subsidies and fuel imports. Largely visible and populist Subsidy route was pursued by government, instead of more reliable techno-community farming, to prop up agricultural sector though it has been contributing a measly 1 to 2% of GDP growth.
Unfortunately, some of the ideologues and the citizens ridiculously failed to realize the importance of Industrial growth and the associated socio-economic benefits, both tangible and intangible, to be accrued to them in their regions. Despite being direct beneficiaries’ of governments subsidies as well as welfare schemes and the same time being tax-exclusives, some sleazy people and their leaders have been vehemently protesting against setting up of Major industries in their regions, for some irrational and self-centered reasons best known to them.
States like Andhra Pradesh, Orissa, West Bengal and Tamil Nadu are highly debt ridden and Electrical power hungry states where growth is paramount for uplifting their poor. However, violent protests in Nandigram and Singur of West Bengal had resulted in shelving of Major investments in that region thus robbing themselves of some great long term opportunities like employment, infrastructure development, improvement in living standards apart from a host of indirect benefits. Similar protests are continuing in Kakrapalli and Nellore in Andhra Pradesh, Koodankulam in Tamil Nadu against Green field thermal and nuclear power projects. Similar protests have become the order of day in some regions of Orissa and Andhra Pradesh against Mining and setting up of new Industrial establishments.
Unjustifiable nature of the protests against power projects can be gauged by reviewing at the electric power demand for the year 2010-2011. According to the 17th electric power survey of India report, India's industrial demand accounted for 35% of electrical power requirement, domestic household use accounted for 28%, agriculture 21%, commercial 9%, public lighting and other miscellaneous applications accounted for the rest. Agricultural demand is a whopping 21%, and the electrical power is supplied free of cost to farmers in states like Andhra Pradesh, already grappling with crippling blackouts lasting several hours; where populist schemes are unabatedly and blatantly pampered by ruling class at the expense of the common man. The protestors and their instigators should realize that the electricity blackouts and power shedding is not only interrupting manufacturing sector but irrigation too across the country.
Indian citizen will be embarrassed to know that India imports marginal amounts of electricity from our smaller neighbors; Bhutan, Nepal and Bangladesh despite having the obligatory resources and skills.
It is the state and central government’s obligation to immediately resolve the land acquisition issues, accelerate the governments mandatory approvals and environmental clearances, speed up the infrastructure development and enable training of skilled manpower (to prevent talent shortages for operating latest technology plants and mitigate unemployment) to facilitate a reasonable business climate in the country. Since, land acquisition results in loss of useful agricultural lands and wetlands, governments shall endeavor to reclaim the lost agricultural lands by converting barren lands to new water bodies, leading to more green pastures and cultivable lands around them. It may be noted that governments schemes such as drought areas programme and Integrated Watershed Development Programme have resulted in barren lands converting to more green pastures and cultivable lands, in the past.
Most importantly, state and central government shall regulate and monitor the Environmental balance of the regions due to new industries to ensure that no resistance or opposition is likely to arise from any category of stake-holders including the local population.

Thursday, May 3, 2012

TIME TO BE CAUTIOUS WITH PERSONAL FINANCIAL INVESTMENTS

The overseas investors turned bearish in April 2012 and pulled out Rs 777 crore, according to the data available with the market regulator SEBI, attributed to a host of factors, including the government's anti-tax avoidance rule (GAAR) proposal announced in the Union Budget and S&P lowering India's credit outlook to negative from stable.
The negative outlook is a consequence of India’s penchant for populism laced vote bank politics as well as extraneous factors which are out of its control. India’s government finances have failed to improve despite high economic growth in the past decade due to unrestrained non-revenue expenditures, small tax net, increased subsidies, unfavorable inflationary pressures due to supply side constraints, Credit & European economic crisis to name a few. These factors have led to deterioration of India’s macroeconomic factors viz., widening of fiscal deficit, moderation of economic growth, slackening in investments, dwindling foreign exchange reserves, and sustained devaluation of Indian currency. These coupled with the governments’ inaction or economic policy paralysis due to coalition politics, RBI’s fiscal policy of high interest rates to tame inflation, Infrastructure issues, persisting inflationary pressures due to supply side constraints and governments’ inability to tackle the commodities supply side constraints have been dampening investment climate and foreign fund inflows.
Undeniably, the Indian economic scenario does not give a feel good factor either for an investor or for an Indian citizen, unless, India returns to a robust growth, healthy government finances and low inflationary environment. It is imperative for Indian policy makers to persistently pursue policy efforts to shrink long term governments’ expenditure; reduce subsidies and expand the tax net to make it more inclusive; address the Infrastructure and commodity supply side issues; and give impetus to the GDP growth.
Deutsche Bank along other global business houses recommend getting more defensive on Indian stocks until investors see more certainty on economic indicators and policy, a more stable rupee and improvements in corporate confidence. Given the uncertain economic scenario ahead for the country as well as the other regions, pecuniary awareness and prudence are keys to personal financial investments.

HOW ARE RULERS IN A DEMOCRACY MORE THAN EQUALS? HERE IT IS!

According to a Home Ministry report, 16,788 VIPs and prominent people, mostly ministers, MPs, MLAs, judges and bureaucrats, were guarded by 50,059 policemen in 25 states and Union Territories in 2010 against sanctioned strength of 28,298 police personnel. Unfortunately, VIP security and not law and order seem to be the top-most priority for most governments. The overly understaffed and overworked police force, which is already grappling with public and media criticism, over deteriorating law and order, is further confronted with a hapless situation of having to divert its forces from highly pressing law and order requirements to VIP security and ever increasing VIP convoy movements. As a consequence of this political callousness, it is the common man who is bearing the brunt of deteriorating law and order as well as endless traffic restrictions and traffic jams during highly frequent VIP movements.
SOME FACTS ABOUT VISIT/ MOVEMENT BY PRESIDENT OF INDIA (Though a ceremonial head)
Convoy details
Warning car, pilot car, ECM Vehicle (jammer), VVIP 1 (bulletproof car), the President’s car, Escort 1, VVIP II (Presidential guests), Escort 3, VVIP spare followed by Presidential entourage that consists of car 1 (Ministers in waiting), car II, car III (military secretary to the President), van, car V, van II, Spare car/ utility vehicle, ambulance, tail car
Preparation time & Resources involved
15-30 days
22 Government departments are involved in planning the visit
Air cover & facilities provided
Involves construction of three-four temporary helipads
Helicopter crew (approximately 20) stay in star hotels ahead of visit
Approximate expenditure
Rs 1.2 Crores

A quarter of the VIPs in the protected category hardly need policemen to guard them. Many of them are too unimportant to be of interest to potential killers; many are no more under threat and many are good enough to take care of their own security. Nevertheless, they seldom acknowledge the ground reality. Movement in public in convoys with red or blue beacons with the obvious security cover is highly considered as a STATUS symbol. Some of elected politicos are local strongmen with enough security around them provided by their own party’s goons and does not need the security cover. However, the central and state governments have been highly charitable in granting security cover, albeit arbitrarily depending on the political equations.
It is widely recognized as well as voiced by many eminent and learned citizens, level headed politicians and media that security cover could be limited only to a handful of people in constitutionally important positions to free up large police personnel for normal duty, which could be a tangible benefit to the citizenry of this country. At the same time, others could make their own arrangements for security personnel and the government could make provision for payment to private security persons employed by the leaders from a special fund based on an approved eligibility criteria, which could again be an intangible benefit to the common man
The Union home ministry has been pruning the list of VIPs under protection over the last three years but it is hardly impressive. Moreover, some states and Union Territories, which have their own arbitrary list of VIPs, have been reluctant to follow suit despite facing a staff crunch. Unfortunately, the “STATUS” part of this proposal is too important for many, to give up.
However, in a welcome development, Akhilesh Singh, the young chief minister of Uttar Pradesh, has cut down his security apparatus and size of the convoy to eight from forty vehicles employed by Mayawati, his predecessor. Manohar Parrikar, the chief minister of Goa, has refused a Z-plus security cover and scaled down the security cover of all other ministers as well. These are highly welcome developments by every Indian citizen and would expect their contemporaries in other states as well as the Federal ministers to follow suit.

Friday, April 20, 2012

UNDERSTAFFED INDIAN POLICE FORCE

The statistics for number of Police personnel per lakh of population throws up an interesting question “Are Indians living in much PEACEFUL, SAFER and LOW CRIME society since it has less than half of the internal security force as compared to the most advance countries in the world, which have most advanced and sophisticated safety systems and crime regulations?”.

Country
Number of Police Personnel Per Lakh of Population
Global Peace Index Rankings in 2011 (out of the 153 Countries Assessed)
Homicide Rate Per Lakh Of Population per year in 2011.
The United States
233
82
4.8
Germany
301
15
0.84
The United Kingdom
333
26
1.23
France
369
36
1.09
India
131
135
3.4
Note: 1 Lakh is equivalent to 100,000 or 10% of a million.













However, the ground reality based on reputed International organization’s studies paints a totally different picture of India.

Internal Security forces are utilized for a wide ranging normal security operations like regulating law & order, VIP protection, election security (Of late, elections in India to various tiers of democracy are being held in phases and for longer durations and has almost become a perennial phenomenon.), traffic regulations etc.   Over and above the normal operations, police forces are deployed to tackle special security issues such as, security and combing operations in Naxal infected areas, foiling Terrorist attacks, managing social unrest fuelled by caste-ist forces, religious forces, regionalism, Anti-capitalist forces etc.
Increasing deployment of security forces for VIP’s protection coupled with deployment requirements for tackling insurgent, naxal and terrorist activities have strained the already limited police forces. 
A report, prepared by Bureau of Police Research and Development, said as on January 1, 2011, the actual strength of the police personnel for per lakh population was 131.39 against the sanctioned posts of 173.51. The report, released by Federal Home Minister P Chidambaram in April 2012, said manpower for protected persons’ protection duty is drawn from available resources generally without corresponding increase in sanctioned strength for the purpose.
Nonetheless, the total police-population ratio (total sanctioned number of police personnel available for per lakh population) has shown wide variations across the country. Intriguingly, the most populous states have relatively much less sanctioned strength of police men than warranted by their total population. West Bengal has just 81 police personnel for per lakh population, followed by 88 personnel in Bihar, 115 in Madhya Pradesh and 118 in Rajasthan against the national average of 174 policemen for per lakh population. Contrarily, sparsely populated states like Tripura have 1,124, Manipur has 1,147 and Mizoram has 1,112 police personnel per lakh population.
Hence, the following measures are immediately warranted by the government to justly meet the law & order situations of ever exploding population, increasing internal security threats, VIP protection requirements and social unrest.
ü  Immediate recruitment and training to meet the sanctioned strength requirements.
ü  Correcting the anomalies in the wide variations of sanctioned strength of the states across the country.
ü  Reviewing the sanctioned strength criteria periodically vis-à-vis deployment requirements.
 With increasing unemployment in India and passion in the younger generation for secured government jobs, it is perplexing to notice the delays in recruitment.
The argument of additional pressure on the exchequer due to increase of security forces may not hold much ice since, peace and harmony with in the country can act as a catalyst for the country’s economic development, thus yielding indirect social and financial benefits to the government and the citizens.
To supplement the above corollary, Stern Review noted that, if the world was 25% more peaceful in 2011, an additional economic benefit of just over US$2 trillion could have been accrued.

Thursday, April 19, 2012

THE MAVERICKS: AMMA, BEHENJI & DIDI


I am still and will continue to be intrigued and at times fascinated by the infamous Roman Emperor Nero’s anecdote. By some accounts, Nero ran away to Macedonia with his lady love Claudia Acte, a former slave, against the wishes of his aggressive, cunning and ruthless mother Agrippina, after he was declared a successor to the throne. However, an unwilling and reluctant Nero was crowned the Emperor, at the tender age of 17, after the untimely death of Emperor Claudius in 54AD. Post succession, Nero often made rulings that pleased the lower class and was criticized as being obsessed with being popular. Nevertheless, over time, Nero faced a number of rebellions and power struggles that made him insecure, bitter, resentful and paranoid. Nero progressively seized more political power through tyranny, freeing himself of his advisers and eliminating rivals to the throne to consolidate his power and authoritarianism. The notable of his political adversaries eliminated by him included, his own mother Agrippina along with his teacher and mentor Seneca, close advisor Burrus, apart from his other step brothers and dissenting senators. Rightfully, over the 14 years of his rule, disenchantment among the ruling elite and masses and rebellion in his armed forces alarmingly grew, which forced Nero to commit suicide at the age of 30 in the year 68 AD.

Unfortunately, all martyred rulers hustled to power right from Nero failed to realize their follies when it mattered. Moreover, the life history of late Indira Gandhi is another great example of an honest individual ruined by unrestricted political power.  

Jayalalitha of Tamil Nadu (popularly called AMMA), Mayawati of Uttar Pradesh (popularly called BEHENJI) and Mamata Banerjee of West Bengal (popularly called DID) have gate-crashed into the male club of Indian regional politics, absolutely by their own choice and were readily embraced by the regional masses as the most viable alternative to those in power in their respective states. Regrettably, they had to endure constant insults and veiled wounds from their respective political adversaries since their opponents could not match the political intelligence, energy and allure of the charismatic ladies who rammed in to their political bastions.

Fortunately, all the three women politicians were given huge mandate by masses in their respective states with great anticipation of betterment and optimism. People overly mandated them and hustled them to power expecting them to become CRUSADERS against the evils and deeds of the previous governments that decelerated their progress and wellbeing. On the contrary, they all failed to realize that the fighter in them must cease to exist once the election battles are won, but instead continued to be relentless fighters against their political adversaries and critics. Smitten by power and delimited by sycophants all-round, their fighting tendencies metamorphosed themselves in to more furious, bitter, arrogant, constantly suspicious, insecure, intolerant and dictatorial.

The flaunting of authority, never ending loyalty tests to their loyalists, misappropriation of state finances, personal exuberance to make themselves immortal in the eyes of common man (ala, statues by Mayawati) and wielding of a heavy hand of the state and police against the political adversaries and dissenters alienated loyalists, friends, media, intelligentsia and masses alike and thus made them perceive conspiracies in anything negative and every reversal they had to endure during their time in power. Precisely, this is what Amma and Behenji had experienced in their earlier terms and is currently happening to Didi. Amma and Behenji became imperious, lonely and ill-advised due to desertions by intelligentsia as well as loyalists and were trapped in a state of siege by highly self-centered sycophants and had to chew the dust during the subsequent provincial elections.

Amma, after being out of power for a decade, seemed to have settled well in her new term of office due to the lessons learnt from the past, justifying the rightful mandate against the decade long limitlessly corrupt Karunanidhi regime.

Conversely, Didi seems to be treading the dangerous tyrannical path by installing fear in the masses, being arbitrary, hot-tempered, arrogant and showing little sensitivity and lack of discretion when it comes to atrocities on women and assaults on intelligentsia by political goons. The public outcry, of late, by the disgusted and angered citizens along the media is a testimony of her misrule and highlights the immediate need to completely change her style of functioning.

Although we empathize with Didi concerning the unhealed wounds of those long years of persecution by the previous regimes, she shall realize at once, that her wounds shall be healed and her pain turned to pleasure by keeping her political detractors away from power as long as she can. However, this can be a reality only if, she can relentlessly work for the public causes as well as pragmatically crusade against the misdeeds of the previous government and build enormous warmth and faith in the masses.

The histories of all martyred rulers hustled to power right from Nero can never be glorified due to the existence of factual evidences while as the present crop of politicians still have a great opportunity to learn from the history and imprint themselves graciously and gloriously in to the history books of the future.

Saturday, April 7, 2012

COALITION POLITICS VEILING INDIA'S ECONOMIC GROWTH

The federal governments in India since late 1990’s are dominated by coalition politics due to mushrooming of many regional leaders with notional national vision coupled with the inability of the National parties to strengthen and widen their influence in all the regions with diverse linguistic, religious and developmental/ regional growth issues.  
The compulsions of coalition politics in addition to the intermittent elections to either the National parliament or State assemblies had a tremendous impact on the India’s economic progress. Every Indian Finance Minister, since the last decade, was in a catch 22 situation to balance the budget to appease the coalition partners as well as the poor sections of the Indian society to garner the votes on one hand and on the other hand not to derail the Indian economic growth.
P.V.Narasimha Rao’s government, during mid 1990’s, with Dr. Manmohan Singh at the helm of Finance ministry, gave the necessary momentum to the Indian economy by easing measures pertaining to inflows of foreign funds and investments, gave impetus to investments in Private sector, facilitated divestments in public sectors companies to enhance spending on non-existent infrastructure, as well as Industrial, fiscal and monitory policy reforms etc., together with booming software industry augmented the employment opportunities, domestic demand driven growth of small and medium sized businesses, enhanced exports and India’s foreign exchange reserves. The momentum in economic growth sustained despite change of Federal governments. Nonetheless, all the federal governments succeeding P.V.Narasimha Rao’s government were coalition governments and economists cautiously note that successive governments neither presented formidable economic reforms nor imparted the required growth impetus as warranted by global economic dynamics. However, It is widely believed and acknowledged that Indian economic growth since the last decade at around 7-8% is despite the successive federal government’s sincere efforts.
ECONOMIC CONCERNS
NON-REVENUE EXPENDITURE: Non-revenue expenditure coupled with ever increasing, non-directional and porous social expenditure including populist subsidies continuous to be the major hindrance to the economic growth of the country. This unproductive expenditure has been widening the country’s fiscal deficit to intolerable proportion of India’s GDP.
REVENUE GENERATION: Indian Finance Ministers, in the 1980’s and 1990’s, were relying heavily on increasing revenue receipts through rise in Income tax, Customs duty and Excise duties, when economic growth was mere 2-4%. Moreover, the Income tax payers base till the new millennium remained in single digit percentage of the population.
However, the computerisation of accounts and networking of government agencies had widened the tax net to considerable levels which facilitated increased direct and indirect tax receipts.  Additionally, acceleration of Indian economic growth to around 8% had eased the pressure on Indian Finance Ministers to unilaterally increase the direct and Indirect taxes with every passing budget. Every Indian Finance minister since this millennium had either eased the Income tax and customs duty rates or increased the slabs for Income tax or minimised the indirect tax rates on some of the popular products used by the common man, thereby facilitating increased domestic demand driven consumption related growth. Moreover, the introduction of Service tax as a new source of revenue generation eased the direct tax burden especially on lower middle class, middle class and higher middle class population in this country.
FISCAL & ECONOMIC MEASURES & REFORMS: Acceleration of Indian economic growth to around 8% was possible essentially due to Industrial and services sector growth with Agricultural sector growth stagnating at very low levels. Additionally, Indian economic growth had been involuntarily coupled with the global economy in the past decade, vis-a-vis foreign fund inflows and investments; product and services exports; strategic technology tie-ups and partnerships; raw material, equipment and country’s indispensable energy imports. However, the global financial crisis in 2007-08 and financial crisis in Europe in 2010-2011 coupled with high inflationary pressures in India had its decelerating effects on India’s economic growth, which needed timely and well oiled fiscal and monetary policy measures together with Industrial, Agricultural and services sector reforms from the Finance minister, in FY 2011-12. However, the vital policy measures and reforms had become hostage to the hostile coalition politics which unfortunately resulted in the India’s growth slipping to circa 6%.  In addition, the financial aid demands from Federal government from coalition partners for their states, to aid populist measures, have alarmingly increased in the recent years.
The slither in the economic growth and lack of fiscal prudence means loss of confidence by overseas investors resulting in reduction in foreign fund inflows, which will further result in reduced investments and working capital requirements in the vital sectors that will make Industrial and Services sectors vulnerable.  This furthur reduces revenue generation by government, increased expenditure and widening fiscal deficit. Additionally, the widening fiscal deficit will further de-value the Indian currency thereby making the essential energy related imports very expensive and shall elevate inflation. The combined impact of deceleration in economic growth and lack of Fiscal prudence is unfortunately very daunting.
The Union Finance Minister, with a right perspective, identified five objectives with obligatory measures to be addressed effectively in the ensuing fiscal year (2012-13) to give the much needed impetus to the economy. However, the onus firmly lies on other coalition partners as well, to bury their petty political ambitions and short sighted interests in the long term interests of this mighty and vibrant nation.