There must be something drastically wrong with our system of governance and planning if we cannot find solutions for a problem, that has become chronic over a period of 3 years - I mean the inflation.
The warning signs were there in late 2007 and early 2008. I was going through my blog posts during the period, when we were echoing the same sentiments about inflation, as we are doing now. You may read those posts just by typing 'Inflation' in the search window of this blog.
If there is one thing that affects people across the country, it has to be inflation. High inflation also has a direct bearing on the election results. And Congress is aware of it. Then why are they on such a suicidal mission of not doing anything about it.
Well they can't do much, even if they want to!
A good amount of money, that should have otherwise gone for plan expenditure, is being spent on unproductive, wasteful social sector spending like NREGA. I am not against social sector spending, but the delivery mechanism is so corrupt, that the cost benefit analysis of such schemes reveals a dismal picture. One can safely expect a waste of 40% in any average inefficient organization. But in this case, the waste is close to 85%!!. An organization cannot expect to not land in a financial crisis with such an amount of waste!!!
Then there is the case of Government unwilling to adopt cost cutting measures to bring down the fiscal deficit. There is absolutely no will to do a Governmental re engineering, that will downsize various departments and ministries, and help to abolish redundant posts. The Ministry itself is bloated with 80 odd ministers, out of which nearly 55 dont have anything to do at all.
Finally, the tax cuts and rebates given to the industries. Much is made of the subsidies given for petrol, diesel, kerosene and LPG, along with those given to the farmers and the poor. But this pales in comparison to the tax benefits given to the industrialists, who have become billionaires at countries expense. It is one thing to support the poor, but quite another to pamper the rich. The argument that rebates given to industrialists motivate them to create more jobs just does not hold water, as the figures on unemployment do not reflect the additional job creation.
There needs to be a national consensus if we are to really grow as an economy, on the way forward.
Or else we will end up like Greece.
