The said inflation index of 11.75% is much more in reality. We all know that it might have touched 25% also. Since the index shows only few commodities which the Govt feels should be on the list, meaning there is an enough scope for manipulation in the inflation & its rates.
The Govt is running out of time and hence the Nuclear deal is tasking center stage at the moment. Slowly & steadily Govt is moving in the direction where from there will be no return on the deal by the Congress led coalition Govt. and which would be the reason for the LEFT to back out in their proclaimed outside support.
The people will forget inflation, price rise, oil prices...........
.........the raw deal farmers received at the hands of Agricultural Ministry led by Mr. Pawar and committed suicides even after he declared whopping Rs.72,000 crores,
.........the common man will forget the effects of the forward trading in grain, pulses and other edible items, which led to tremendous price rise of more than 100% in some of the pulses & grains through out 2005-06-07,
........all those middle level executives & newly emerging higher middle class whose perks came under scanner by the Finance Minister Mr. Chidambaram by introducing FRINGE BENEFIT TAX & hugely complicating Income Tax proceedings, which now has made compulsory to take service of a Chartered Accountant a MUST,
.......the rate of Service Tax reaching 12.24% from mere 4% when the BJP was voted out of power,
ETC., ETC.,........
Because their media managers will see that all the news papers, all the news channels and everywhere, it will be collapse of the UPA Govt. due to signing of Nuclear deal and blame will be set on the LEFT. People will immerse itself into the new drama unleashed by the party in power and will easily forget the people who killed their confidence and stabbed in the back, Everybody in this country is fooled by this Govt on some or the other plank.
I really wonder what are the achievements of this Govt. led by Manmohan Singh (?) One fails to understand that these people in the politics are so cheap and dumb that they even don't understand that their cheap acts of commission & omission are being watched by the poor and hapless Indians. He knows what is going on.
He understands that LEFT has no love for Indian nation, it is more closer to China, who in turn behaves as if they don't know these leftists. Some times people in India really wonder what they have in their mind and their loyalty to this Indian nation always in question. Indian national interest in no where visible. When the entire country has resigned its fate for accepting the Nuclear Deal, though there are other viable solutions to energy problems, LEFT are so stubborn in their stand that at times I feel that USA should also give something to LEFT for their election funds. ( One might ask, am I telling that Indians are bribed by USA for the deal ? well you can answer it yourself. despite there being present so many other solutions for our energy crisis UPA Govt wants Nuclear energy only. It has fought 3 years defending a deal with USA !!)
It is really depressing that these political leaders are failing to understand that they are better understood than they understand themselves. People have clear inkling what they are up to and what they will do next.
It is so depressing that Finance Minister of this large nation, asks for relief from oil producing nations. He wants them to increase the production, while he is just sitting tight and watching. Mr. Chidambarm is waiting for OPEC countries for the woes of Indians to be sorted out, what a great Finance Minister we have found. He has yet to prove his cleverness to the Indian masses, which he might have already proved to FIIs and other foreign investors. (Perhaps he is more interested in doing that instead the nation.)
What I feel is that Mr. F.M. has proved to be clever in finding out new and very complicated ways in which he can tax Indians. The funny thing is that Indians come to know about tax provision much after it really comes into existence. (Don't forget he is foreign returned FM, hence he is less likely to understand Indian masses.)
Agreed that the prices of oil are global phenomena, but what about the inflation, which was rising slowly and steadily, much before the oil prices crisis began this January 2008. You can't blame that inflation is due to higher prices of oil only. You have so many other ways to control them. I am not convinced that there are not many ways to control inflation.
This means that Govt now with the help of Samajwadi Party of Mulayam Singh Yadav is trying hard to save the Govt., because it is not ready at the moment for the fresh election. Therefore election preparation will take some time. Besides, Govt hopes to bring the rate of inflation down to say 7% or 8%. So it wants to buy time.
But the deal with the USA must be given direction before the mid-July. The USA is waiting for the reaction from India. They will not take the lapsing of agreement that lightly. So the Govt needs to take the balancing actions where it will save the Govt and the deal is made through. But since the adamant left, will not allow the deal to go through, Govt will have to look for the other partner to allow this Govt to survive.
But what worries the common man is the rising prices, rising rate of inflation and value of his investments plummeting relentlessly. He needs answers to his problems created due to complicated tax structure put in force. he is more worried about the continuous falling value of rupee in the international financial standings. It is a worrying factor that international agencies are lowering the credit ratings for the Indian financial markets and lowering of anticipated growth rate.
There are few suggestions by a common man like me, who think F.M. must look into these steps and if he cannot adopt these measures as they are suggested, but at least they can take the cue from the same.
I would suggest the duty cuts, first. There has been tremendous duty being levied on the oil. Cutting duty will result in lowering of prices of oil and to some extent inflation could go down. Such duty cuts needs to be compensated by slapping heavy tax on cars, SUVs, etc., which actually drink oil when run, duty cuts be given to small cars which are going to be exported and not manufactured & sold in India. Cars must be sold to those who do not have any single car. in his name. Additional car must fetch heavy tax on the second ownership of the car. CBDs like Nariman Point or Kurla Bandra complex in Mumbai, must not allow the private car with one passenger in side it, encouraging car-pooling.
Most importantly, with Tata's Nano on the horizon, a new car owner must provide the proof that he is owning a parking space in his building, society etc., Such acts will reduce the demand for cars, consequently reducing the consumption of the oil and at the same time will not hurt the Govt coffers and will cause the traffic problems to come down.
Why can our MPs can't let go their perks and salaries. There needs to be a complete halt to the Development Fund of Rs.5 Cr. being awarded to each and every MP every year. Everybody in this country, except our Hon'ble MPs, know where that fund goes and who are being developed with that fund.
It is far more advisable to stay away from taking up any huge developmental projects, for the time being, as such projects will create more demand for already strained resources. Besides it will add up to the funds in the hands of the people creating more demand and pushing up price index as well as the inflation.
It is important that Govt reduces all expenses which are non-productive and can be avoided. Foreign tours of all Ministers be restricted to 2 to 3 of their tenure, except for PM & core ministers.
Making the Govt functions paperless by consuming only the required papers, this will save fast depleting forests and cut in the operating costs of the Govt.
There is scope for halt on the permit being issued for public transport to auto rickshaws and taxi es, as they are adding up to fuel consumption as well as rise in traffic in tremendous way.
By doing this people will be forced to use public transportation like buses and trains.
On the agricultural fronts, we need to control growing sugarcane for making fuel. But such growing of grains used for bio-diesel must be on newly discovered land not the land where the food was being grown up so far.
These enumerated ideas will reduce inflation and price rise to an extent.
BUT ABOVE ALL WE CAN DO ONE THING IS AND THAT IS TO REDUCE OUR OWN CONSUMPTION. IF WE CONSUME LESS AND WHAT IS REQUIRED, THE DEMAND FOR THESE PRODUCTS WILL GO DOWN. WE HAVE TO BE CAREFUL NOT TO SPEND ON ANY UNWANTED ITEMS AND SERVICES.
THESE MEASURES ALONG WITH MANY OTHER MEASURES WE CAN CONTROL OUR EXPENSES AND BY THAT CONTRIBUTING IN LOWERING THE INFLATION RATES TO LITTLE BIT MORE, THOUGH IT MIGHT BE NEGLIGIBLE BY MEANS OF SIZE OF THE COUNTRY LIKE INDIA
The Govt is running out of time and hence the Nuclear deal is tasking center stage at the moment. Slowly & steadily Govt is moving in the direction where from there will be no return on the deal by the Congress led coalition Govt. and which would be the reason for the LEFT to back out in their proclaimed outside support.
The people will forget inflation, price rise, oil prices...........
.........the raw deal farmers received at the hands of Agricultural Ministry led by Mr. Pawar and committed suicides even after he declared whopping Rs.72,000 crores,
.........the common man will forget the effects of the forward trading in grain, pulses and other edible items, which led to tremendous price rise of more than 100% in some of the pulses & grains through out 2005-06-07,
........all those middle level executives & newly emerging higher middle class whose perks came under scanner by the Finance Minister Mr. Chidambaram by introducing FRINGE BENEFIT TAX & hugely complicating Income Tax proceedings, which now has made compulsory to take service of a Chartered Accountant a MUST,
.......the rate of Service Tax reaching 12.24% from mere 4% when the BJP was voted out of power,
ETC., ETC.,........
Because their media managers will see that all the news papers, all the news channels and everywhere, it will be collapse of the UPA Govt. due to signing of Nuclear deal and blame will be set on the LEFT. People will immerse itself into the new drama unleashed by the party in power and will easily forget the people who killed their confidence and stabbed in the back, Everybody in this country is fooled by this Govt on some or the other plank.
I really wonder what are the achievements of this Govt. led by Manmohan Singh (?) One fails to understand that these people in the politics are so cheap and dumb that they even don't understand that their cheap acts of commission & omission are being watched by the poor and hapless Indians. He knows what is going on.
He understands that LEFT has no love for Indian nation, it is more closer to China, who in turn behaves as if they don't know these leftists. Some times people in India really wonder what they have in their mind and their loyalty to this Indian nation always in question. Indian national interest in no where visible. When the entire country has resigned its fate for accepting the Nuclear Deal, though there are other viable solutions to energy problems, LEFT are so stubborn in their stand that at times I feel that USA should also give something to LEFT for their election funds. ( One might ask, am I telling that Indians are bribed by USA for the deal ? well you can answer it yourself. despite there being present so many other solutions for our energy crisis UPA Govt wants Nuclear energy only. It has fought 3 years defending a deal with USA !!)
It is really depressing that these political leaders are failing to understand that they are better understood than they understand themselves. People have clear inkling what they are up to and what they will do next.
It is so depressing that Finance Minister of this large nation, asks for relief from oil producing nations. He wants them to increase the production, while he is just sitting tight and watching. Mr. Chidambarm is waiting for OPEC countries for the woes of Indians to be sorted out, what a great Finance Minister we have found. He has yet to prove his cleverness to the Indian masses, which he might have already proved to FIIs and other foreign investors. (Perhaps he is more interested in doing that instead the nation.)
What I feel is that Mr. F.M. has proved to be clever in finding out new and very complicated ways in which he can tax Indians. The funny thing is that Indians come to know about tax provision much after it really comes into existence. (Don't forget he is foreign returned FM, hence he is less likely to understand Indian masses.)
Agreed that the prices of oil are global phenomena, but what about the inflation, which was rising slowly and steadily, much before the oil prices crisis began this January 2008. You can't blame that inflation is due to higher prices of oil only. You have so many other ways to control them. I am not convinced that there are not many ways to control inflation.
This means that Govt now with the help of Samajwadi Party of Mulayam Singh Yadav is trying hard to save the Govt., because it is not ready at the moment for the fresh election. Therefore election preparation will take some time. Besides, Govt hopes to bring the rate of inflation down to say 7% or 8%. So it wants to buy time.
But the deal with the USA must be given direction before the mid-July. The USA is waiting for the reaction from India. They will not take the lapsing of agreement that lightly. So the Govt needs to take the balancing actions where it will save the Govt and the deal is made through. But since the adamant left, will not allow the deal to go through, Govt will have to look for the other partner to allow this Govt to survive.
But what worries the common man is the rising prices, rising rate of inflation and value of his investments plummeting relentlessly. He needs answers to his problems created due to complicated tax structure put in force. he is more worried about the continuous falling value of rupee in the international financial standings. It is a worrying factor that international agencies are lowering the credit ratings for the Indian financial markets and lowering of anticipated growth rate.
There are few suggestions by a common man like me, who think F.M. must look into these steps and if he cannot adopt these measures as they are suggested, but at least they can take the cue from the same.
I would suggest the duty cuts, first. There has been tremendous duty being levied on the oil. Cutting duty will result in lowering of prices of oil and to some extent inflation could go down. Such duty cuts needs to be compensated by slapping heavy tax on cars, SUVs, etc., which actually drink oil when run, duty cuts be given to small cars which are going to be exported and not manufactured & sold in India. Cars must be sold to those who do not have any single car. in his name. Additional car must fetch heavy tax on the second ownership of the car. CBDs like Nariman Point or Kurla Bandra complex in Mumbai, must not allow the private car with one passenger in side it, encouraging car-pooling.
Most importantly, with Tata's Nano on the horizon, a new car owner must provide the proof that he is owning a parking space in his building, society etc., Such acts will reduce the demand for cars, consequently reducing the consumption of the oil and at the same time will not hurt the Govt coffers and will cause the traffic problems to come down.
Why can our MPs can't let go their perks and salaries. There needs to be a complete halt to the Development Fund of Rs.5 Cr. being awarded to each and every MP every year. Everybody in this country, except our Hon'ble MPs, know where that fund goes and who are being developed with that fund.
It is far more advisable to stay away from taking up any huge developmental projects, for the time being, as such projects will create more demand for already strained resources. Besides it will add up to the funds in the hands of the people creating more demand and pushing up price index as well as the inflation.
It is important that Govt reduces all expenses which are non-productive and can be avoided. Foreign tours of all Ministers be restricted to 2 to 3 of their tenure, except for PM & core ministers.
Making the Govt functions paperless by consuming only the required papers, this will save fast depleting forests and cut in the operating costs of the Govt.
There is scope for halt on the permit being issued for public transport to auto rickshaws and taxi es, as they are adding up to fuel consumption as well as rise in traffic in tremendous way.
By doing this people will be forced to use public transportation like buses and trains.
On the agricultural fronts, we need to control growing sugarcane for making fuel. But such growing of grains used for bio-diesel must be on newly discovered land not the land where the food was being grown up so far.
These enumerated ideas will reduce inflation and price rise to an extent.
BUT ABOVE ALL WE CAN DO ONE THING IS AND THAT IS TO REDUCE OUR OWN CONSUMPTION. IF WE CONSUME LESS AND WHAT IS REQUIRED, THE DEMAND FOR THESE PRODUCTS WILL GO DOWN. WE HAVE TO BE CAREFUL NOT TO SPEND ON ANY UNWANTED ITEMS AND SERVICES.
THESE MEASURES ALONG WITH MANY OTHER MEASURES WE CAN CONTROL OUR EXPENSES AND BY THAT CONTRIBUTING IN LOWERING THE INFLATION RATES TO LITTLE BIT MORE, THOUGH IT MIGHT BE NEGLIGIBLE BY MEANS OF SIZE OF THE COUNTRY LIKE INDIA
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2 comments:
"BUT ABOVE ALL WE CAN DO ONE THING IS AND THAT IS TO REDUCE OUR OWN CONSUMPTION."
"WE HAVE TO BE CAREFUL NOT TO SPEND ON ANY UNWANTED ITEMS AND SERVICES."
Excellent advice...if everyone, especially the U.S., would abide by this advice, we would not be facing the troubles we are.
Yes, that's right. Whole world thinks like that except the US. Perhaps this is one of the way by which the world can bring the US to its knees.
STAY AWAY FROM USA manufactured goods. You and me perhaps may not make an impact..but if the whole world does it...imagine what will happen to those MNCs..they will make their political leaders to do what the world opinion can not convey & convince the Federal Govt. of USA to do.
But meanwhile we have to at least start doing that bit of the thing. If we wait for USA to heed to our piece of advice, we will be bankrupt and on roads.
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