"The true triumph of
reason is that it enables us to get along with those who do not possess
it."
—Voltaire (French,
1694-1778)
Word for the day
Rodomontade
To boast; brag; talk big.
Malice towards none
Joke circulating on Whatsapp
- "The government banned 'Corex' cough syrup just to debilitate Arvind
Kejriwal!"
First random thought this morning
As per a recent research report
20 OECD countries might have $78trillion in unfunded or underfunded government
pension liabilities. Inarguably, the ultimate sufferer of the so called
unconventional monetary policies will be the poor pensioners of the world.
The Ponzi in the name of ZIRP or NIRP can only end when poor &
old savers lose most of their savings. Imagine the pain of a pensioner who does
not get any return on his savings for 10-15yrs and then suddenly
hyper-inflation sets in.
I am suddenly feeling like converting to Marxism.
Could it be different this time - 4
Despite experiencing a number of false starts in past three
decades, I am inclined to bet on "it could be different this time".
The events of past 2-3years give strong reasons to believe that
the time is finally coming when the interest of people could override the
interest of feudal lords and pseudo socialists.
I would like to highlight just five points to emphasize my
viewpoint:
(1) The government,
regulators and courts have taken a series of decisive actions to mainstream
the infamous parallel economy. The steps like cancellation of 2G spectrum
licenses & coal block allotments; e-auctioning of resources; real estate
regulation; direct cash transfer of subsidies and mandatory linkage to Aadhar;
transparency in defense and railways procurements; tax surveillance of large
value purchases; challenging the misuse of tax exemptions for agriculture
income; charitable purposes & LTCG; one time amnesty for declaring domestic
and foreign unaccounted money; etc. some of the measures that would deter
corruption in public office & tax evasion and forcefully discourage the
parallel economy.
As the traditional ways of doing business are challenged
consistently, the business momentum may get disrupted in the short term. But in
mid to long term the benefits would be tremendous and sustainable.
(2) The superior
emphasis on enablement of people rather than just providing for them is a
structural reform, that could make India potentially a globally competitive
economy. Undertaking the task of development of occupational skills and
entrepreneurship in youth on mission basis could potentially fill the gap
between the aspiration and actualization.
(3) The past three union
budgets of have shown strong commitment to the mantra of growth with fiscal
responsibility. Ignoring the interests of political expediency and short
term economic the government has shown firm resolve to make the growth fiscally
sustainable. Most state governments and RBI have supported the government
efforts well, enhancing the confidence of global investors. The efforts have
been widely lauded in the global arena, including by rating agencies. Though
analysts are still skeptical of the feasibility of government meeting its
fiscal targets, I find no reason to doubt the budget numbers.
(4) There has been a
conscious effort to devolve more powers on the state and local governments.
The difference this time is that devolution is coming with assignment of
various responsibilities. The states are being engaged actively in the
development of railways, upgradation of civic infrastructure and ensuring
sustainability of power sector.
(5) The best part is that
unlike the past, the promotion of self reliance is not being sought to
achieve by stifling global competition. To the contrary, the global participation
is being encouraged to make India self reliant in technology, manufacturing and
optimum exploitation of local resources.
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