This is a massive distraction tactic by the UPA. What about inflation which has touched nearly 12%?
Now those expenditures, plus an additional $25 billion on upcoming fertilizer subsidies, is adding $100 billion a year—or 10% of India's gross domestic product, or equivalent to the country's entire collection of income taxes—to the national bill. This at a time when India needs urgently to spend $500 billion on new infrastructure and more on upgrading education and health-care facilities. The government's official debt, which dropped below 6% of gross domestic product last year, will now be closer to 10% this year. "Starting last year, the government missed key opportunities" to fix the economy, says Gokarn. In fact, he adds, "there has been no significant reform done at all in the past four years"—the time the Congress coalition has been in power.
Even the most bullish on India are hard-pressed to recall any significant economic reforms made in the recent past. A plan to build 30 Special Economic Zones is virtually suspended because New Delhi has not sorted out how to acquire the necessary land, a major issue in both urban and rural India, without a major social and political upheaval. Agriculture, distorted by fertilizer subsidies and technologically laggard, is woefully unproductive. Simple and nonpolitical reforms, like strengthening the legal system and adding more judges to the courtrooms, have been ignored.
RE:Wht about inflation?
by pravin on Jul 10, 2008 09:59 AM Permalink
Because of congress, Inflation is at manageable levels, If BJP was in power, our country would have become like Zimbabwe...Dr.Singh and Mr.Chidambaram are most competent people to manage our economy , at this point in time...Thank god, they are managing our economy at this point of time, but for them,it could have been disastorous...
RE:Wht about inflation?
by SI on Jul 10, 2008 09:50 AM Permalink
Who is Gokarn anyway? If you have a way to stop dollar from depreciating internationally or to stop oil prices spiralling, please put forward. India is not the only country that is feeling the effects of inflation. China's inflation reached a 12 year high in Feb.23.3% rice in food costs. Agriculture is distorted by sibsidies? Have you ever talked to a farmer in your life?
