"The opposite of a
correct statement is a false statement. But the opposite of a profound truth
may well be another profound truth."
—William Jennings (American,
1860-1925)
Word
for the day
Overwinter (v)
To pass, spend, or survive the winter, e.g., to overwinter on the Riviera.
Malice
towards none
Why no one is highlighting
that incorruptible image, frugality of needs and capacity to work round the
clock could have worked in Yogi's favor!
First random
thought this morning
The present round of assembly elections is over, with seemingly
stable governments in place in all the five states. Election rhetoric is behind
us as all Chief Ministers are talking serious business only.
Hopefully, Delhi MCD election will not become an issue of national
importance, and we'll see focus on improving execution, rather than devising
new plans and making promises. At least till Gujarat elections are announced
later in the summer.
The road ahead - 4
Continuing from the last Friday (see here),
the point I am trying to make is that the Empowerment stage if Indian democracy
is almost over. The prime minister, the leader of opposition in Lok Sabha, and
at least 23 out of the present 31 state Chief Ministers are first generation
politicians from very modest socio-economic background.
In past two decades, the process of Enablement of these empowered
people has also gathered remarkable pace. Particularly, in past three years a
number of programs have been initiated to enable the people. For example,
financial inclusion through Jan Dhan, MSME financing through MUDRA, Skill
enhancement and training through Skill India, improved accessibility through
deeper and wider digital penetration, rural road connectivity, improved air
connectivity, expansion and improvement of highway network, social security
through crop insurance and universal insurance schemes, augmented electricity
supply through higher generation (including focus on renewables), better
transmission and distribution and restructuring of SEB finances, etc.
It is now time to begin the Engagement phase of the evolution.
Empirically the Engagement phase is usually the best phase of
evolution of a democratic society. In this stage, the economy transcends from
the entitlement based structure to contributory structure. Subsidies and grants
make way for fees and taxation.
A majority of empowered and enabled population contributes to the
economic growth and development through higher taxation and fees for civic
services. This is therefore the phase when the demand for physical and social
infrastructure, like roads, power, ports, healthcare rises exponentially and
investment in these sectors becomes economically and financially profitable.
Historically, for the capital markets this is the golden period.
As more and more people join the mainstream economic growth and development
process, the savings and investment rates rise on sustainable basis. The demand
and supply of capital is usually maximum in this phase of evolution; and so is
the capital market activity and wealth creation.
I see some of the recent events as an attempt to trigger the
engagement phase of socio-economic development and growth - the most notable
being the sudden move to abolish high denomination currency notes forming 86%
of currency base in the country. This, in my view, is a courageous attempt to
engage a large section of society in the mainstream economic development
through better tax compliance.
Complete abolition of subsidy on transportation fuel, and gradual
withdrawal of subsidy on cooking fuel, implementation of a uniform GST law,
reforms in state electricity distribution, self funded social security through
pension and insurance schemes, rationalization of farm and food subsidies and
stricter tax compliance standards are some more indicators of the transition.
These are however early days to jump to a trade on this transition, but I
am keeping a close watch.
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