Friday, April 11, 2008

Inflation in India

Thanks for the comments I received from some readers although no one could tell anything either way. I trust all of you are forwarding this link to your contacts so that we may elicit response from as many as possible.
While globally there is recession and inflation, India seem to have in accelerated proportion. The prices of the essential food items and vegetables have sky rocketed and it is reported that many people in the lower rung of the society earning less that 100 a day are forced to beg for few few grains and splinters of the wasted vegetables for their day to day diet!. The pinch is also felt by the middle class who are now shouting demanding higher wages. Despite the 40% raise provided in the 6th Pay commission for the Central Govt staff, which itself in not provisioned, is felt to be meagre by them and protest galore. The public sector and the state government employees have already started cribbing for an equivalent 40% rise, while the public sector Banks may not be able to take anything above 10% as of now!. Added to this the rains have played spoilt sport last week and if the mansoon also does some reversed shpw, there may not be any solution to this issue.
The government seem to be doing not much at this end but are busy playing election games like the 60000 crore waiver of farmers loan and the recent 27% reservation to the OBC!. The waiver has, naturally so, sent wrong signals to the farmers and even the sincere farmers who have repaid the loans earlier will be demotivated. Over and above this the FM is terming this as a gratitude paid to the farmers (defaultimg?) by the nation, -- perhaps the sincere ones do not deserve this!. I feel would it not have better effect if such waiver is done on a selective basis through a committee after going through the facts and figures, but this will not provide the much needed political mileage to the party/FM?.
Why not they think of reducing various wasteful expenses and also provide a part of the tax collections like luxury Tax, to a corpus which may be used to provide the essential grains to the people below poverty line thru Public Distribution Schemes? Now the ration card is only used as an identity and proof of residence document!!

WILL ANYONE BELL THE CAT... at the least we may voice a joint protest.
Expect this to be forwarded to all your contacts including media.

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