Thursday, July 10, 2014

Dear FM ride a scooty on PMGSY road, bullet trains can wait

Thought for the day
”People who think they know everything are a great annoyance to those of us who do.”
-          Isaac Asimov (American, 1920-1992)
Word for the day
Foofaraw (v)
A great fuss or disturbance about something very insignificant.
(Source: Dictionary.com)
Teaser for the day
PM's first overseas business visit may be fruitless. Germans would be too elated to talk business (Merkel may even not meet Modi) and Brazilians would be too depressed to talk business!

Dear FM ride a scooty on PMGSY road, bullet trains can wait

Scooty (e.g. Activa) and mobile phone have empowered women more than any policy initiative or legislation.
The recent statements made by some ministers, including the finance minister & prime minister himself, the rail budget, and the economic survey, have adequately hinted that -
(a)   The new government is willing to take the straight road to the economic revival. This road is long and exacting but the success is guaranteed. Along the way the resolve and grit of the government will be tested rather frequently. A ma breakdown will set BJP and economy back by another decade.
(b)   Administrative efficiency and ease of doing business will be initial fruits. The flowering should be visible within six months.
(c)   Enablement rather than provisioning will be the mantra for growth and development. Those accustomed to government patronage and largesse will certainly face an existential threat in next five year.
(d)   The governance and compliance deficit will be targeted on top priority basis to make a strong foundation for bridging other deficits like capital, fiscal, and trust.
In this backdrop I do not expect the finance minister to deliver any major concessions in today's speech. Though token concessions like hike in 80C, 80D or basic exemption is ok. It would be totally in order to increase taxes by way of specific cess (like road and higher education) to mobilize resources for specific purposes.
Insofar as reforms are concerned, I believe that the objective should be enablement of common people rather than benefit of few select.
Spending on social sector is not socialism in Indian context. It is hardcore capitalism. It is like the money spend on developing a coal mine that will fuel our power plants for many decades.
I would like to highlight some key reforms made in past that have made substantial difference to common man's life:
(a)   The social sector schemes have impacted the people lives more than the economic reforms, especially in rural areas. Despite frequent news of irregularities, schemes like mid day meal, girl child education, NRHM and MNREGA have positively impacted more lives. Financial inclusion (SHG, MFI, Banking Correspondents) has also impacted their lives directly.
(b)   PMGSY (the flagship rural roads scheme) has been a game changer.
(c)   Mobile connectivity has been the best technological evolution impacting the rural lives.
(d)   Metro rail has improved people's life significantly.
(e)   In rural areas of most states obtaining drinking water consumes 6-8 man hours. Electricity is still inadequate. Focusing on these two could enhance productivity and income potential in rural and semi-urban areas substantially.
(f)     We felt that strictly implemented prohibition legislation would bring more prosperity to states like Haryana, Uttrakhand and Punjab than any economic reform.
(g)   Education and health reforms are more critical than economic reforms for most citizens of India.

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