Clever Finance Minister and Economist Dr.Manmohan Singh have ignored the ill effects of their bad economic policies for nine years and now when the economy is on ventilator, Mr. P. Chidambram is contemplating of taking hard decisions to combat critical current economic situation.
It is just like a situation when a fire brigade reaches after the entire house is burnt or a police team reaches when rioting is finished or when angry mob causes huge losses or when the act of crime is carried out successfully by a criminal.
"Sara Ghar loota kar, niti ke shlok padh rahe hai Sriman Vitta Mantri Ji"
I still doubt whether he will really take hard steps. I doubt because he and his team have spoilt the fundamental of economy and they are not ready to accept that their bad policies and bad governance are real reason of current crisis. Still they do not want to understand the gravity of sickness and do not want to accept the real cause of sickness.
Until they understand the cause of sickness they cannot provide right remedy. When a thief or a gang of miscreants carry out stealing or public loot after under hand understanding with police, they carry out the task of stealing fearlessly . Similarly when the sickness of the economy is due to bad policies propagated and executed by ill-motivated persons, I may not digest the news that FM will take hard decisions to cure the sickness.
Rather I will say that FM or PM both is confused. They say that the economy is sick due to burden of fuel subsidy and fertilizer subsidy and it is they who have passed Food Security Bill which will cause much more burden of sick economy. It is they who are ready to distribute free mobile, tablets and laptops to voters. They are ready to waive bank loans.
FM says that he cannot tolerate bad debts of corporate that are wealthy and prosperous. On the contrary, When FM talks of bankers; he suggests restructure of high value loans because in his view corporate are failing in their commitment due to global slowdown.
FM and his Ministry of Finance suggest stimulus package for auto sector so that sale of cars goes up. I laugh when the same FM says that he will take hard decisions to reduce fuel consumption and thus reduce import bill of fuel. It is ministers who move on road with a fleet of cars following them and thus waste fuel .Fuel bill in each department have gone up ten times and more but our clever finance minster talk of austerity steps to reduce fuel import bill.
Rajiv Gandhi, Sonia Gandhi, Rahul Gandhi, Narsimha Rao, Manmohan Singh and majority of leaders of congress Party leaders have been shedding crocodile tears on poverty and on rampant large scale corruption for last four decades and they openly accept that 85 percent of development expenses is lost in transit. Still nothing has been done to stop corruption and they do all to provide protection to corrupt officials and corrupt politicians and leave no stone unturned to torture honest officers like Khemka or Durga Nagpal.
FM says that banks should focus on micro finance and industrial finance but banks are charging higher rate for industrial finance than they charge for financing a luxury car or a high value home. They charge highest interest rate on loans granted to pensioners and least rate on rich persons who seek high value car loan or home loan. Not only this contribution of farm loan or micro finance has been consistently falling in total advances and the bitter truth is that more than fifty percent of total lending of a bank is given to top 100 borrowers. The bitter truth is that majority of high value loans which are now bad in books of banks must have been sanctioned under pressure or under recommendation of ministers only.
FM says that he is in favour of merger and consolidation of banks but he is ready to give more and more license for opening of new banks. He says that public sector banks are failing due to weak monitoring, but he is unable to stop political exploitation of bank by loan waiver schemes or by forcing banks to have less base rate even if their cost is higher. When banks face loss or face erosion in profits and capital, he expresses his inability to provide support by infusion of capital.
FM pleads that public sector banks should have merit oriented policies but they select ED and CMD by giving value to illegal and corrupt means. No doubt when CMD and ED comes through using bad means he also propagate bad culture in promotion process taking place in his banks for junior level officers.
FM suggests that banks should take quick and timely decision on credit proposals but it is they who are unable to activate their own departments which are suffering from governance deficit.
On rupee fall FM suggest steps to reduce trade deficit but promote importers and nothing to increase manufacturing and export. Rupee crisis has become critical due to increase in current account deficit, increased external commercial borrowing and increase in share of short term borrowing s, still our clever FM is promoting External commercial Borrowing which may heal the wound for some time but may convert the wound into cancerous and life taking wound.
It is rightly said that politicians do not do what they say and they do not say what they intend to do. They are state actors , they are government sponsored terrorists, they are licensed looter and they are preaching sermons to innocent audience just like Asha Ram. Because dormant and innocent public in general do not see what is happening behind the screen or want to remain silent spectator of Draupdi Chirharan in fear of repercussion..
Asharam Bapu like saints deceived their audience by preaching sermons of Geeta and bibles whereas our clever economists and politicians ruling this country and who are in power have been since long deceiving their voters by preaching sermons of reformation, privatization, liberalization and globalization. Behind the scene both are raping common men and this is why Politicians are as wealthy as some of cheat saints are and who do not hesitate in stabbing their disciples in the name of religion or secularism.
Economy is stressed; hard decisions soon: P Chidambaram--ET
NEW DELHI: The government plans to take some "hard decisions" to trim wasteful expenditure and curb the import of inessential items to deal with the stressed economic situation, although there will be no hasty increase in petrol and diesel prices.
"We are going through a period of stress...We have to take some hard decisions. Many of these measures are being taken and many measures will be announced in the next few days and weeks. Some measures to curb import of inessential items will also be announced," Finance Minister P Chidambaram said while winding up a debate on the Appropriation Bill in the Rajya Sabha.
"When you are facing a gloomy situation, wasteful expenditure has to be curbed...You call it austerity measures, you call it cut in non-plan expenditure...while we must continue to spend and continue to find money for productive investment," he said.
On concerns expressed by members of Parliament on fuel prices, Chidambaram assured them the government will not take any decision in haste to increase diesel and petrol prices.
"No decision has been taken. No decision would be taken hastily and certainly no decision will be taken without weighing the pros and cons of the larger public interest," he said.
On the rupee, the Finance Minister said the domestic currency has shown improvement in the past few days but he is keeping his fingers crossed.
"We are fighting many unknown factors in the currency markets. Yes, the currency has appreciated in last 3-4 days. But I keep my fingers crossed," he said.
The rupee, which fell to almost 69 against the US dollar last month, has started strengthening on the back of announcements by new RBI Governor Raghuram Rajan. The rupee rose 77 paise yesterday to close at 65.24, the highest level in almost two weeks.
Chidambaram said steps have been taken to increase foreign fund flows and more are being planned. MORE PTI NKD CSEconomy is stressed; hard decisions soon: Chidambaram
New Delhi, Sept 7 (PTI) The government plans to take some "hard decisions" to trim wasteful expenditure and curb the import of inessential items to deal with the stressed economic situation, although there will be no hasty increase in petrol and diesel prices.
"We are going through a period of stress...We have to take some hard decisions. Many of these measures are being taken and many measures will be announced in the next few days and weeks. Some measures to curb import of inessential items will also be announced," Finance Minister P Chidambaram said while winding up a debate on the Appropriation Bill in the Rajya Sabha.
"When you are facing a gloomy situation, wasteful expenditure has to be curbed...You call it austerity measures, you call it cut in non-plan expenditure...while we must continue to spend and continue to find money for productive investment," he said.
On concerns expressed by members of Parliament on fuel prices, Chidambaram assured them the government will not take any decision in haste to increase diesel and petrol prices.
"No decision has been taken. No decision would be taken hastily and certainly no decision will be taken without weighing the pros and cons of the larger public interest," he said.
On the rupee, the Finance Minister said the domestic currency has shown improvement in the past few days but he is keeping his fingers crossed.
"We are fighting many unknown factors in the currency markets. Yes, the currency has appreciated in last 3-4 days. But I keep my fingers crossed," he said.
The rupee, which fell to almost 69 against the US dollar last month, has started strengthening on the back of announcements by new RBI Governor Raghuram Rajan. The rupee rose 77 paise yesterday to close at 65.24, the highest level in almost two weeks.
Chidambaram said steps have been taken to increase foreign fund flows and more are being planned. Chidambaram also spoke about the stimulus packages, days after blaming them for the current economic mess in comments that were seen as an attack on his predecessor Pranab Mukherjee, who is now the President.
"We allowed the fiscal deficit target to breach. We allowed CAD to swell. I blame nobody. We include all of us in government, we include all in Parliament," he said.
Chidambaram said that like India, many countries had provided stimulus packages to help the industry tide over the impact of the global financial meltdown of 2008.
The stimulus, he said, had its consequences on the fiscal deficit and the current account deficit (CAD).
"We anchored growth but that resulted in some consequences. The fiscal deficit went high, to what I call unacceptable (level). CAD swelled," he said.
Referring to price increases, Chidambaram said although Wholesale Price Index inflation was about 5-6 per cent, retail inflation was high.
Inflation, he said, had to be tackled by addressing supply-side constraints and removing distribution bottlenecks.
"First step is to focus on supply side. Distribution side is antiquated...We have to focus on distribution system also," he added.
"We are going through a period of stress...We have to take some hard decisions. Many of these measures are being taken and many measures will be announced in the next few days and weeks. Some measures to curb import of inessential items will also be announced," Finance Minister P Chidambaram said while winding up a debate on the Appropriation Bill in the Rajya Sabha.
"When you are facing a gloomy situation, wasteful expenditure has to be curbed...You call it austerity measures, you call it cut in non-plan expenditure...while we must continue to spend and continue to find money for productive investment," he said.
On concerns expressed by members of Parliament on fuel prices, Chidambaram assured them the government will not take any decision in haste to increase diesel and petrol prices.
"No decision has been taken. No decision would be taken hastily and certainly no decision will be taken without weighing the pros and cons of the larger public interest," he said.
On the rupee, the Finance Minister said the domestic currency has shown improvement in the past few days but he is keeping his fingers crossed.
"We are fighting many unknown factors in the currency markets. Yes, the currency has appreciated in last 3-4 days. But I keep my fingers crossed," he said.
The rupee, which fell to almost 69 against the US dollar last month, has started strengthening on the back of announcements by new RBI Governor Raghuram Rajan. The rupee rose 77 paise yesterday to close at 65.24, the highest level in almost two weeks.
Chidambaram said steps have been taken to increase foreign fund flows and more are being planned. MORE PTI NKD CSEconomy is stressed; hard decisions soon: Chidambaram
New Delhi, Sept 7 (PTI) The government plans to take some "hard decisions" to trim wasteful expenditure and curb the import of inessential items to deal with the stressed economic situation, although there will be no hasty increase in petrol and diesel prices.
"We are going through a period of stress...We have to take some hard decisions. Many of these measures are being taken and many measures will be announced in the next few days and weeks. Some measures to curb import of inessential items will also be announced," Finance Minister P Chidambaram said while winding up a debate on the Appropriation Bill in the Rajya Sabha.
"When you are facing a gloomy situation, wasteful expenditure has to be curbed...You call it austerity measures, you call it cut in non-plan expenditure...while we must continue to spend and continue to find money for productive investment," he said.
On concerns expressed by members of Parliament on fuel prices, Chidambaram assured them the government will not take any decision in haste to increase diesel and petrol prices.
"No decision has been taken. No decision would be taken hastily and certainly no decision will be taken without weighing the pros and cons of the larger public interest," he said.
On the rupee, the Finance Minister said the domestic currency has shown improvement in the past few days but he is keeping his fingers crossed.
"We are fighting many unknown factors in the currency markets. Yes, the currency has appreciated in last 3-4 days. But I keep my fingers crossed," he said.
The rupee, which fell to almost 69 against the US dollar last month, has started strengthening on the back of announcements by new RBI Governor Raghuram Rajan. The rupee rose 77 paise yesterday to close at 65.24, the highest level in almost two weeks.
Chidambaram said steps have been taken to increase foreign fund flows and more are being planned. Chidambaram also spoke about the stimulus packages, days after blaming them for the current economic mess in comments that were seen as an attack on his predecessor Pranab Mukherjee, who is now the President.
"We allowed the fiscal deficit target to breach. We allowed CAD to swell. I blame nobody. We include all of us in government, we include all in Parliament," he said.
Chidambaram said that like India, many countries had provided stimulus packages to help the industry tide over the impact of the global financial meltdown of 2008.
The stimulus, he said, had its consequences on the fiscal deficit and the current account deficit (CAD).
"We anchored growth but that resulted in some consequences. The fiscal deficit went high, to what I call unacceptable (level). CAD swelled," he said.
Referring to price increases, Chidambaram said although Wholesale Price Index inflation was about 5-6 per cent, retail inflation was high.
Inflation, he said, had to be tackled by addressing supply-side constraints and removing distribution bottlenecks.
"First step is to focus on supply side. Distribution side is antiquated...We have to focus on distribution system also," he added.
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