Indian State of Economy 2009 ? 2010,
Statement by Finance Minister PRANAB MUKHERJEE
On 3 November at Economic editors Conference, at New Delhi ? might lead to food riots, if sustainable correction is not there please! Your governments good intentions ARE not suspected but Social Economic path is very badly DICEY missing to a large extent A LOT OF THINGS OF PUBLIC ECONOMY MISSING? NATIONAL RURAL EMPLOYMENT GUARENTEE SCHEME(NREGS) ASSISTANCE TO BPL people is not enough to sustain specially lot of moneys are stolen by politicians on the way please ? Also a lot middle class is suffering too in the present economy, after all every household does not have husband and wife income pooling PLEASE.!! FOOD RIOTS ARE TO BE CONTAINED PLEASE.
{?Sad indeed corporate methods are unsuited for governance of State ? State works on Social economics and welfare and not businesses? financial just cash profits ? dividends of corporate is not the dividends of a state financial management?, Sorry Pranab, you toe the line of business finance philosophy but not government business based public finance management ? indeed state will run into steep debts worse than what we faced during V. P Singh?s government of late 1980, unless strong immediate correction in the path is there in the country?, ADOLF HITLERS GERMANY WAS SAVED IN 1930s by AMERICAN MUNIFICENCE (AT AMERICANS? COST OF ENSUED DEPORESSION) BUT NOBODY WILL SAVE INDIA PLEASE TODAY EVEN MONSOONS PRACTICALLY FAILED AT NATIONS? COST- Comments by an Emeritus Professor Prof. G. Balakrishnan, a Social Economist- free lance-writer}
In the conference main points got highlighted are:-
- 1. Foreign Exchange reserves positive;
- 2. Recovery of Exports is still uncertain:
- 3. Expectations of Foreign investors is high and rising:
- 4.Government cannot drop guard owing to global uncertainties:
- 5. Non farm sector credit off take remains a concern:
- 6.Banks have been asked to increase credit growth:
- 7. Signs of price hardening evident:
- 8.Liquidity not an issue at present:
- 9. System correction ? medium term strategy:
- 10.Draught impact due to monsoon failures ? still to be observed:
- 11. Positive indications that growth will recover:
- 12. Fiscal deficit to fall to 5.5% in 2010-11 and by 2011-12, likely to fall to 4%:
- 13.Steps to curtail subsidies to fertilizer and petroleum products:
- 14. Revenues to step up from 10% to 15% likely :
- 14 Basket of Foreign exchange is in diversification:
- 16.System correction ? medium term strategy ? impact of monsoons;
- 17. Disinvestment of PSUs on maximum financial advantage:
- 18.Export ? Import ? anti dumping to be balancing factor:
- 19.Draught due to monsoon failures ? still to be observed:

Conference highlighted that all is not that good with economy in India. This remind us the 1929 and how Germany was in trouble. Adolf Hitler, Fuhrer of Germany, made Germany to get into spiraling Inflation and in fact German Bank printed currencies in billions. The net Result was economy collapsed, all over. Repairs are some kind of novices repairing, like repair of ?Chandrayan? and net result was ?Chandrayan by ISRO is lost for ever in the wilderness of Moon or Space. Nobody really knows!.

This is like ARMY warning 26/11 repeat but they will not know where exactly the problem is. We find ?e-mail? to the interested terrorists to fore warn them just to buckle up to make attack is positive and result oriented. That is all. That means you are annoyed just because you are unaware you will be hit. So is the economic predictions lead to predilections. You are caught in Scylla and Charibdis dilemma. Governments continuously are failing miserably.

1930s repeat is not yet over in India. Economic ministries or banks say ??things as yet not really attractive?, U, V, W, graphs are the result and confused movements in the people minds and that has impact on over all economy. All prices are not realistic. So many clever people make the killing by various ploys, by so called FALSEHOOD forecasting abilities. Forecasting abilities are really tied up the ability TO assesses several factors, but today so called experts do just ?approximations?, say may be true or not and they are not scientific forecast approach ANYMORE..
Realists appreciate governments? allover do really get confused BY false ?forecasts?. PM is sincere but he seems to be at end of his wits. Not only him but all the so called experts all over may be Nobel laureates or university professors or the super specialty journo(s), as they no longer talk like curious people.
One thing is certain people are at cross roads of conflicting claims. In the meantime so many ?Kodas? like Jharkhand politicians ARE being screened under CBI AND ?ED? ENFORECEMENT DIRECTORATE ?SCANNER?. Soon thousands will emerge, if the government has a will to bring to book in the interest of Nation.

The selective of information feed is also ?subjective analyses. Objectively fed information is missing since ?opening of economies?.

Ultimate reality is we are at some brink of economic destruction; it is like euthanasia ? silent killer of the economies leading to some kind of wilderness land that can be called an Eldorado Land.

One thing is certain poor will become poorer if divestment in PSUs continued to augment fiscal needs which is exorbitantly high very much higher than the governments? capability to handle, as most of the states finance ministers boost the state fiscal needs by higher local taxes on all goods and services cutting into the poor man?s budgets to run his house.

World over is very serious financial crisis since every where there is no solution but expenses are shooting up, as consumerism still high believing everything is fine but truth is indeed at the opposite ends (OTHERWISE)and might possibly lead to food riots, if there is no control in expenses and money will expand beyond limits.

If businesses are encouraged to go in their way, naturally Naxalism and Marxists will thrive as poor and poverty stricken cannot be just a spectator, after all his stomach pinches.

Recessionary trends are preferable to inflationary trends.

People with less income and NO control on expenses on essentials flatten.

Governments should be careful as to not to tow the business lines.

You now need a leader like Indira Gandhi to declare emergency to control banks and extravagant expenses, as your neighbor Pakistan will have great opportunity to take advantage on food riots sooner or latter and Taliban and other outfits look for such opportunity.

Wisdom in public finance management has to prevail to save the man on the street, after all very many Kodas will soon emerge everywhere if public revenue generation by debt goes on and on unabated, as the tax payer has to meet the debts which is seriously doubtful.

Repudiation is not possible which Americans faced during 1930 from several heavily borrowed countries but today you are borrowing from public finances, including divestments i.e., regulating revenues and expenditures.
Sir, Sad indeed government is towing the lines of corporate world which is mesmerizing the government and it is a dangerous doctrine of getting mesmerized. (Ends)
Notes:
1Cooner Dougherty reported in Wall street journal on October 30(2009)?While the news marks ?an apparent end to worst recession sine 1930, while the II?recovery is expected to be slow and painful, as companies shed jobs and credit remains tight ??. Bulk of the rise in FDP came from increased consumer spending which was spurred by federal stimulus programs like cash for Clunkers schemes that have nearly or entirely expired, thus creating uncertainty about the sustainability of the recovery.

Britain has sunk even deeper in the depths of recession.