Sunday, June 06, 2010

UPA's reckless spending

Sadly, UPA, under the "eminent economist and honest PM", is creating havoc with disastrous fiscal policies. High fiscal deficit is pegging interest rates at uncomfortable levels. Unlike manufacturing and services, agriculture is unlikely to experience blistering growth rates. But what really hurt the agriculture sector is government intervention by way of populist schemes. Through doles via schemes like NREGS, UPA created artificial wage inflation in rural areas. It peeled peoples off the land and clung them onto the mammaries of the state.

UPA's fiscal policies are not creating assets or building infrastructure. Government allocation is creating and feeding inefficiencies
within the system, while increasing income disparities. UPA-1 has already pushed 100 million Indians into poverty. All indications are that UPA-2 is accelerating the pace of perpetrating penury.

The Pioneer > Online Edition : >> Growth for some handout for many
The total fiscal deficit (the Central Government plus the states) is nearly 10 per cent of the GDP.
... manufacturing grew by 9.3 per cent last year and services by 8.5 per cent. By contrast, agriculture, which still sustains some 60 per cent of the population, struggled to experience a 0.2 per cent growth.

1 comment:

kppradeep said...

Lets all pray God so that this govt with an impotent and corrupt PM and Super PM should go and thus India be saved