1. Will have a 'cascading' effect on remaining food items and will help in reducing the prices and inflation. 2. Will create 'demand' for agricultural products and will 'prevent' farmers suicide. 3. Will prevent 350 million Indians 'starving' every day for a 2nd meal.
As early as 1991 when he devalued the indian currency by 25% then FM of India proudly anounced that it will not affect the internal economics and there will not be any price rise. People prased him like anything. They said he is the best Finance Minister of India. I said, to me he is the worst FM. All my friends turned to me and said why do you feel that way. I said if I had Rs one lakh in any of the fixed securities yesterday to day it is only 75000/=. People did not want to understand then. In the year 1991-92 Govt of India paid Rs 15000 crores as interest on the providend fund of its employees. You can calculate the borrowings when the rate of interest was 12% on PF. Man Mohan Singh wrote off 25% of debt in two stroke of pen (15% 10%). Congress has resorted to devalution in 1947 and then in 1967 on various pretexts. My friends asked what should have the govt done? My simple answer was Change the currency the parallel economy will colapse. But Congress did not want to do that because parallel economy was in the hands of Congressmen and there supporters. Twice the crisis has taken place first time in 1977 when the janta party Govt has to resort to selling of Gold which the Congress made issue later on and then in 1990-91. The basic reason for this crisis was the Congress Parties Closeness with USSR in which Soviets were the underwriters to everything happening in India owing to Rupee trade with Soviets. Janta party could not find its feet. Soon Congress returned to powe
TVR shenoy is right in saying that instead of develpoment congress is sucking all the money in the system through its pro rural schemes and through loan waiver RTI has to be invoked in all these schemes and truth should be out.
RE:congress sucking money out of system
by Vishwamitra Singh on Jun 08, 2008 11:42 AM Permalink
No RTI. Lets change the system. Rise to induce the change
I cannot digest that our PM shamelessly coming out ,defending petrol price hike and asks it citizen to consume less while the price of it is higher than that of US.US,having far greater per capital income and consuming fuel on less price while the Indians made to pay more.Does our PM have any statistics that Indians are consuming more...I dont really think so.I know many families in India hasnt even seen the trains which may not be the case in US.With the pathetic transport systems its natural to expect to encourage private ownership of vehicles.PM's media advisor came out and floated his discovery.Petrol is rich man's fuel.Has he travelled to rural areas.Who rides mopeds?The rich persons?Who rides bikes?Is it middle class or the rich?The media adivisor has to gain some knowledge before speaking in media.
"both the timing and the reasoning that is being dished out leave much to be desired." This is better said as BANKRUPCY of sane politics by the PM & FM of this country. The post euphoric budget interviews dished out several "I dont know" from the FM of this country.
RE:Where is the money going
by Roni gavaskar on Jun 08, 2008 02:54 PM Permalink
Oil is $130/ Barrel and will goto $150 next mon month! What can ANY government do?
Tamilnadu CM - M. Karunanidhi celebrating 85th Brithday in a Very Grand way. Lot of activities involved, programs and of course huge money is been used for that. The main thing is that money is from Govt. which is our tax moeny, which we earned very hard. now feeling very very hard that money is been used like this,
So for a Rs 22 liter petrol at pumps we people pay Rs 28 tax extra.
Govt. is thinking to impose more price hike to curtain with the current crude oil bubble in International oil crisis.
If Central Govt. wish, it can still reduce the price of petrol in the current crisis situation, but it doesn't intend to do so, instead trying to fool the people and Nation. This is the basis LEFT parties are opposing*, just generating more profits for the oil marketing companies.
Don't you think you should pass this message to create more awareness among the people.
Readers Opinion.
1) If you take any product, there is excise duty or customs duty. This is not the sole problem of petrol. Governments need money for its developmental activities. For this Central Govt Collect Excise and customs duti
RE:Petrol Fever - A Real Eye Opener
by Kavitha on Jun 07, 2008 08:56 PM Permalink
Readers Opinion. 1) If you take any product, there is excise duty or customs duty. This is not the sole problem of petrol. Governments need money for its developmental activities. For this Central Govt Collect Excise and customs duties. It is not possible to avoid such taxes. It is the duty of every citizen to pay taxes. Major portion of tax revenue is used for defence and for giving various subsidies.( Ofcourse (I agree) , some of the developmental activities are not reaching the common man. It is going to the pockets of our dirty politicians (including the left) and the bureaucrats.)
2) From the above table itself it is clear that extra amount of Rs.28/- is paid towards taxes and transportation. It does not "just generating more profits for the oil marketing companies". Cost of crude oil per barrel is $ 130, that means, Rs. 5460/- per barrel. One barrel is equal to 42 gallons .1 gallon=3.7854liters. That means one barrel =159 litres. Thus cost per litre of crude oil is Rs.34.34. Thus oil companies are losing Rs.12.40 per litre. Please note that apart from the cost of $130/- per barrel, there is transportation, handling and insurance charges. Apart from this Rs.5.98 per litre is to be incurred for processing crude oil. Thus basic price of petrol, after considering processing gain and other by- products, is around Rs 41.23 per litre. Now, where is the question of generating more profits for the oil marketing companies?
RE:RE:Petrol Fever - A Real Eye Opener
by Kavitha on Jun 07, 2008 08:57 PM Permalink
*3)Lefties (commies)are saying that central government should not increase oil price, but reduce excise duty and other taxes. States in which lefties are ruling is levying sales tax between 24.6% to 29.1%. Why they are not withdrawing sales tax on Petrol. If they reduce sales tax from 29% to 12.5%, people of those states will gain more than Rs.3/-per litre. Lefties are playing vote bank politics.Why can't they withdraw support for UPA government at the centre? They are enjoying the benefits of both ruling party and the opposition.
4) Even if the entire burden of international price hike of oil is suffered by the centre, the centre will run a deficit budget which in turn will lead to inflation. For meeting the deficit, the centre will have to do any of the following or a combination of them 1) borrow from others 2) Increase various taxes 3) Increase money circulation by circulating more money. All these steps will have its influence in Inflation and increasing the agony of the people.
Conclusion.
This is the part of a cycle which we will have to suffer. Root cause is Mr. Bush, Mr.Sadam and few others.
RE:Petrol Fever - A Real Eye Opener
by venkat a on Jun 08, 2008 07:08 AM Permalink
I agree what u said, but this article says where those excise duty or customs duty money goes??? If that is been utilized properly, automatically the excise or customs duty can be reduced (without affecting the money towards developmental activities). This PM and FM made those money worthlessly as giving various subsidies just to fill-up their vote bank, But the Peoples are well aware of that, This should not be forgotten forever. Whenever this congress Govt, comes it happens like this, remember 1996 when congress was in power, the Same FM sent out the useless imagining to recover the black money, and most of the factories and companies were closed.
It is absurd and without any knowledge of ground realties!! Maybe this Malayala Manorema famed person has gone insane! About State bank of India issue, he should have checked properly before writing the crap. Has Manorema dumped him!!! if not earlier the better.
why didn't the govt approach German govt to get the information about black money when it was offered that they would co-operate with govt of India on exposing all the tax-evaders?
Of course, I was not surprised at all when GOI didn't take any interest at all. If they are actually doing something on this, then its of no use unless the information is made public and the culprits are prosecuted. Of course, most of them would be big politicians both from Kangress and BJP.
