ECONOMIC POLICY आर्थिक-मौद्रिक नीति

 आर्थिक-मौद्रिक नीति
By :: Pt. Santosh Bhardwaj   
ONION AND PULSES HAVE STARTED PINCHING THE POOR IN INDIA, YET AGAIN-INDICATING FAILURE OF POLICY MAKERS. Paswan is grossly incapable of handling a ministry, but Modi has option but to keep him in the cabinet. Arun Jatli too has failed miserably to prove his mantel. Rupee is at its lowest rated near past in spite of falling oil prices.[19.01.2016]

UTILITY :: One is buying a gadget without learning to use various functions performed by it. He should ensure that he will be able to use these functions made available in the gadget.You need a mobile phone to remain in touch with your family members, why do you go for an expansive phone which has a camera, face book, multimedia, data transfer facilities which you may never be able to utilize. He is crazy. He has to buy the latest model what ever the price is.He don't mind if he has to borrow money.

PhotoHOME ECONOMICS घरेलू बजट :: India is a country surviving-perpetuating for millions and millions of years. It has a well-defined system, closely knit society, having established norms, with no place for discontentment or discord. Each and every one is assigned some prescribed functions and duties inherited, generation after generation. Family has a head who is supposed to integrate and manage the finances of the household.
Joint family system prevailed till the advent of modern times. These days the society is experiencing high rate of mobility-immigration and undergoing drastic changes in love, affection, sympathy, values, ethics, morals, culture, virtues, righteousness and the religion. Nuclear families are coming into existence-leading to frequent break ups-divorces, leaving the children into a state of lurch- helplessness. Social cultural bonds are breaking leaving no scope for rapprochement.
Much before getting a job or settlement in life the young ones, get involved in infatuations-so called love, which is neither stable nor permanent-indeed it’s not love but sensuality-passion. As soon marriage takes place the newly married couple starts acquiring flat, car, leisure-luxury goods just to show off, to portrait that they do have all amenities of life, whether essential or not. Instead of travelling by train they travel by air. They do all this on the strength of loans, for which they have to pay heavy interest and service charges. Instead of eating at home, they enjoy meals in hotels-restaurants-eateries. Weekly outings, trips, cinema are a part of their routine. Each and every effort is made to imitate the higher ups-well to do people-upper segment of the society.  Outcome of this mindless extravaganza is obvious.
Those who wish to cope up with the ever increasing needs may find a solution in the well-established ancient system of making budget and allocating money for the lean season. A common practice called 1/6th rule is helping.
Let the gross earnings = 1
Reserved for parents, grant parents and guests    = 1/6th of gross income,
Allocated for self and day to day needs               = 1/6th of gross income,
Welfare and education of children                       =1/6th of gross income,
Taxes (-direct and others)                                   =1/6th of gross income,
Savings (-lean season, marriages, housing etc.)    = 1/6th of gross income,
Charity                                                                =1/6th of gross income.
People with low earnings are required to pay direct taxes. But almost every purchase made, requires the payment of indirect taxes at multiple levels. A component of this 1/6th may be redistributed in the rest of five items.
Charity-donations have been integral part of Indian household for generations. Religious duties, rituals, ceremonies, festivals may be undertaken without creating need for loans. Big donations should be avoided, till basic needs of the family are not met. At a time of crises such adventures may be eliminated completely. Children are hungry, they need medicine and one is busy in mindless sacrifices, charity, donations. One should cater to the immediate-essential needs of the dependents, prior to charity.
In the absence of taxes and charity remaining 4 items gets an allocation of 1/4th each. One must stress on savings, since the children will need more money, and growing age will require more money for health care. Liabilities go on increasing day by day. So, one must focus on logical expenses  As a member of civic society one may help others and seek their help as well. Those who do not reciprocate in spite of sufficient funds, one should alienate from them, for such dealings.
The household should not expose his financial position to anyone.
UNION BUDGET :: The budget was more or less balanced, realistic-futuristic and inclined to progress in long term. The Congress made hue and cry-noise without any logic saying that nothing was new in it. Nothing new means: what has been done by you earlier. If it is condemned by you-you condemn your own budgets. Man Mohan and Pranav said that they did not have magic lamp to control inflation-increasing prices. What you have done in 60 years can not be wiped off in just 60 days. Understood or not?
BUYING-BRAND AMBASSADOR :: One often come across advertisements showing some celebrity-film star-popular person-icons along with the newly launched-old products.  The icons is more seen in the advertisement as compared to the speciality-quality-technical superiority-design-innovations. The gullible seller entice the buyer through. In fact millions of people are cheated every day by the crooked people world-wide.Still one fails to realize his mistake.
Wait and watch is better as compared to rushing to buy it. One must go by the opinion of regular users of the product. At occasions same product is relaunched by making slight variations-difference-changes in packaging and minor changes here and there.
One has to wise enough to deal with the day to day purchases. He should not hesitate to take his children to the market and teach how to make purchases. Wherever possible one must not hesitate from bargaining, as well.
be wise next time.
उन्ही चेहरों को फिल्म, टीवी, अख़बार, पत्रिका में बार-बार देख कर सभी बोर हो जाते हैं। मेकअप इतना गहरा होता है कि ऊँगली लगते ही लकीर पैदा जाये।
माल की खूबी बताओ-अच्छाई बताओ मगर हीरो-हिरोइन-मॉडल की तस्वीर मत दिखाओ।  
अत: खरीदो तो सोच समझ कर-जाँच परख कर। 
Chinese goods are generally duplicate, low quality mainly contribute to grey market. They copy the product and sell  it in advanced countries without any difficulty. Multi National Corporations manufacturing goods in China too, sell these goods world wide. Lap tops, batteries, mobile phones, CFL's, buses are some of examples. Those countries, which import merchandise from China do it, at the cost of their country's industries and labour.
Marketing :: For over 15 years a company is selling its products by making a consumer chain. One was invited to attend its meetings-of course after buying tickets. A session was attended earlier as well.  Nothing impressive was observed, then. This time as well curiosity led to make purchases. Some products were bought after becoming a member of the chain. The finding were not encouraging except that the agents were earning a lot of money probably because the consumers are not aware that better products are available at much lower cost than their's. Their food supplements have no creditable scientific certification either. Some of the products used by one proved useless and wasteful. How ever there is no doubt that the wealth of the owners of the company, has gone up several thousand times.
How long will these people continue to cheat people? In the beginning these people made a money chain and deceived millions of people in India. They were arrested but soon released on bail. 
Wake up Indians-wake up.
Depreciating Rupee :: The situation is not so bad-gloomy, as it appears. Every one knows that the fundamentals are sound. Then why is this free fall?
Answer lies in the wrong  policies-corruption-black money-hoarding-fixation of prices at the starting point for essential commodities by the politicians in power, miscalculation-speculation-purchase of gold by the Indians-unrealistic bank rates-subsidies-payments in dollars/pounds. Then, there is the menace of betting, for this most sought after commodity.
As a matter of fact the real prices of goods are quite low in India, as compared to USA/Europe. Every thing has been linked to petroleum prices, unnecessarily.  Petroleum prices are manoeuvred for high gains, by the producers. Petroleum producers greed/appetite will remain unsatisfied whatever, one does. The single option for this phenomenon to be checked/controlled is to barter in Indian currency, ignoring/dumping dollars for ever.
SAGGING RUPEE :: Before freedom the value of rupee and dollar was equal. After freedom it has slided 62 times in comparison to the dollar. There are innumerable causes for the devaluation of the Indian currency, but the main cause is mismanagement. India is ruled by incompetent people, who are merely puppets in the hands of foreign powers. Its not difficult to check the down fall  of rupee provided the government takes remedial measures which are based on practical  not the theoretical concepts which are almost discarded all over the world except India. Some of the measures are listed below:
Stop trading in rupee immediately-forget treaties.
Allow the import of essential commodities.
Ask the MNC manufactures to Indianize the products to 100%, level within one year, or/else leave.
Cancel the licences of coke/breweries/distillery operating in India importing raw material from abroad.
Confiscate the property of all MNC's operating in India and are involved in tax evasion.
Stop investments of foreign funds in Indian stock market immediately.
Enhance the rate of interest on small savings and charge interest from the industry at market rates i.e., 18%-24%.
Compel the jewelers to issue cash receipts and to receive payments through cheque/ rtgs/e-banking. 
Compel the jewelers to make sales on production of ID/ADHAR cards.
Fix the rupee parity with the other countries on the strength of the prices of essential commodities in their retail market. Method should be identical to the one which is used to calculate whole sale/retail price indices in India or abroad.
Stop all luxuries in government expenditure.
Stop all subsidies at all levels-at once.
Stop all free-ships/freebies/charities at government level.
Acquire/attach the property of all corrupt officials/ministers at once.
Make it compulsory to declare stocks, maintain ledgers,m issue receipt for the shop keepers a compulsory phenomenon.
RBI should fix price of foreign currencies. Stop free floating of rupee.
Confiscate the properties of all those found printing/circulating Indian currency along with filing of cases of treason/revolt against the nation.
Withdraw all subsidies/dolls/aid.
Vote (-food) security bill loaded a burden of Rs.1.3 Lakh Crore on the tax payer/economy leading to loss of Rs.2 Lakh Crores in one day's trading on the stock exchanges, pushing the price of Gold to 32585/10 gram. the government should have learnt from its follies of 1970. Food bill is a bad idea and does no service to the poor.
Millions of dollars black money has been deposited by Indian bureaucrats/politicians/criminal in tax heavens need to be brought back.
Prime minister should stop making absurd statements in the parliament to misguide/mislead the country and blaming other for his/party head's guilt.
Reduce external debit. Stop external grants.
Curb, restraint, check the wasteful expenditure by the peoples representatives on travel, luxuries, housing-renovations, perks. 
Recover each and every penny from fraudulent businessmen and their associates involved in scams during the last and present decade. All contracts, business licences, freight, mining, telephoning ventures of the corrupt should be cancelled immediately. heavy penalties should be imposed upon them along with jail term.They should be debarred from government business for ever.
Pensions of representatives/legislatures must be stopped along with the facilities extended to them, once they cease to be members of any house.
Dollar has been used by the hoarders as a commodity for trading successfully. They have made fortunes and are still busy with the tricks. How ever this is not possible without patronage from the high and mighty in the government.Those, who indulge in such trade practices must be booked. 
World wide tenders should be floated for the supply of crude to refineries at the door step. Long term agreements should be signed at the lowest rates and pre condition to negotiate the rates if they fall in the international market. All payments should be made in Rupees not dollars.
Pension funds were utilized by unscrupulous traders to inflate the oil market. Still some people are busy in hiking the prices of such commodities of common use, all over the world. They should be identified and brought to book.
The state must avoid-minimise borrowing/credit/deficit budgeting. The economist will say that its a must. But one will not believe it since he is also maintaining his family within his resources-limits. the vision of the economist is myopic. he can not see beyond a certain limit-i.e., what has been taught to him through Micro and Macro economics. One can make saving and maintain surplus budget. this will lead to reduced prices and over all cheerfulness in the country-market. Why should there be a need for printing currency against what does not exist? Why should there be bonds -promissory notes? They are just burden over the economy and torturous for the citizens.
DEFICIT BUDGETING :: The state must avoid-minimise borrowing/credit/deficit budgeting. The economist will say that its a must. But one will not believe it since he is also maintaining his family, within his resources-limits. The vision of the economist is myopic. He can not see beyond a certain limit-i.e., what has been taught to him through Micro and Macro economics. One can make saving and maintain surplus budget. This will lead to reduced prices and over all cheerfulness in the country-market. Why should there be a need for printing currency notes against what does not exist? Why should there be bonds -promissory notes? They are just burden over the economy and torturous for the citizens.
This is the root cause for increasing prices globally. Growth targets are fixed arbitrarily, with out sound foundations. Demand never match the supply. Basic assumptions behind the economic theories are wrong. The theories which were devised during the world war I might be true to some extent but in today's circumstances they totally failure. The world is shrinking day by day-markets are expanding-business has increased enormously. More and more people prefer to buy luxury goods in addition to their basic requirements. More and more people are well to do, now.
In India, the government first export onions and then import them. The prices of vegetables are pre fixed in spite of bumper crops. One can not buy any vegetables for less than Rs. 60 per kilo. The government always fixes the prices of wheat, rice and sugar cane in the grab of support price. The wheat rusts in the open, during the rainy season. Large flour mills are not allowed to buy wheat and store it in their go downs. The government agencies (FCI) lack expertise-efficiency-plagued by corruption. Agencies like Mother Dairy are openly cheating the consumer. Toned milk is passed on to the consumers as full creme milk, while the double toned milk as toned milk. Popular suppliers are not far behind. They are churning money out of milk.  Their prices are always more than the retail market. Some times the retailer quote the prices of Government dairies for charging more.
Delhi Milk Scheme and Super Bazaar are examples mismanagement and rowdy deals. 
Obamacare :: One should not extract political mileage through the opposition of proposed laws meant for the benefit of the citizens-poor-down trodden. You have the right to propose amendments to it, but you are expected to block it. Its meant for the benefit of your own countrymen. 
Why don't you oppose the aid, which is extended to the terrorist states like Pakistan? 
Why don't you oppose the military solutions-interference, pertaining to other states/countries? 
Why you fail to voice your concern for the slaughter of your own soldiers abroad? 
Why you don't question the purchase of sub standard/duplicate/low quality goods from China? 
Why do you permit the government and MNC's to opt for cheap Chinese labor-cheap low quality labor: low quality goods, at the cost of your own countrymen!?
Why prohibits you from forcing the government to industrialize the country instead of out sourcing?
Opposition for the sake of opposition is always counter productive.This is a case of crude-dirty politics.
Bringing the government to stand still is a ploy for snatching power through black mail and you know the motives of the blackmailers.You should learn from the Indian opposition leaders who do not block the passage of budgetary allocations/bills in parliament.
In fact the people who are opposing Obama are anti poor and have racial character in their veins. Every one knows that their elections are financed by non other than the God-Fathers.
FOOD SECURITY खाद्य सुरक्षा :: The government has woken up after wasting full 9 years in office. Its leaders claim to provide food for Rs.12/= to Re.1/=. This government which says that it will provide rice and wheat at Rs. 3/= and Rs.2/= respectively charged Rs.26/= and Rs.20/= from the disaster hit Uttra Khand people.
Does it wish to convert the country into a paradise for beggars or the ones who do not wish to work at all. "अजगर करे ना चाकरी, पंछी करे न काम, दास मलूका कह गये सबके दाता राम"। 
This populist measure failed to ensure the victory of UPA government in four states.
There is no budgetary provision for the colossal amount of money needed for this election year gimmick.  As matter of fact burden of taxes pinches the middle class the most. Upper class un disturbed, due to these inflationary measures of the present government. The common man will be crushed due to the mis handling of poverty by the government. Presidential proclamation clearly indicates of the of the malafied intentions of the leaders of the ruling party.
This government allows millions of tonnes of wheat to decay over the railway platforms  go downs and in the  open areas. The same government allows whiskey makers to utilize wheat for preparing alcohol. One may find beggars at each and every red light of the busy roads, temples or the streets.
In its bid to remove poverty the government is working over the program of removing the poor, and dragging the middle class to below poverty line.
Give them work, not alms.
गरीबी मिटाने  का सबसे सरल उपाय सरकार  जानती है; गरीब को मिटाओ।
भीख दो ताकि वो कमाना भूल जाये। 
काम मत दो, ताकि काम करना भूल जाये।
UPA government spent Rs.3.65 to deliver Re.1-worth food. 36% of food grain are siphoned of to open market. 57% of subsidized food grain did not reach the beneficiaries. Rampant corruption and pilferage exist in PDS-held/governed by the members of UPA-Congress combine people.[Delhi-27.02.2014]
BAD LOANS डूबत खाता :: Banks sanction loans to all categories of needy people. A large number of loans remain un serviced. Those who are high and mighty never care to repay loans. Loans are sanctioned against sureties-property-securities and have guarantors as well. Then how is that the loans are not recovered and termed as bad loans!? Millions are struck in bad loans sufficient to derail the economy aided by black money, foreign bank accounts. Don't expect the government to recover these sinking funds, since those in power are deeply involved in such deals-transactions to their neck.
SUBSIDIES :: All kinds of subsidies offered by the government are dangerous for the nation.They are like the weevil, woodlouse, termite decaying-hollowing the economy. There are the people who have d2h-TV, fridges, scooters, cars and houses of their own and still availing subsidies on rations, gas, water, electricity etc. Its definite that the incomes are low in India as compared to the developed countries. India is not a welfare state by any yard stick. Its neither communist nor capitalist. Subsidies reduce the drive for efficiency. They lead to wastage as well. Its an established fact that the middle man is pocketing the subsidy. The government should explore other suitable alternatives like job opportunities-work through out the year. 
Subsidies are burden on the common masses. Its only the middle class which is suffering the most due to the governments policies. Government resort to loans, printing of currency notes, devaluation, selling of government assets and imposition of new taxes. Present tax regime is anti people. One has to pay tax at each and step of buying a manufactured good. Then there is the menace of duel-triple taxation like CST, LST, VAT, bribery. LPG, petrol are selling at different rates in different states. Such commodities should have one price throughout the nation. Subsidies on diesel used by the car users should be scrapped immediately.
Support prices of grain, sugar cane fixed by the government are arbitrary. Government is supplying seeds, fertilisers, electricity, diesel, canal water to the farmer at subsidised prices. Main beneficiary of these subsidies to the farmers is one who has large holdings-farms. Small farmer with low holdings never able to avail the benefit of these subsidies. Big chunks of land are held by big people, politicians, business houses, companies.
ONION PRICE :: The politician always weighs interference in free market operations in terms of immediate, average and long term gains. He may not be accurate-correct in his calculations, like the previous regime. Atal's government failed to recognize the gravity of allowing the exports of onions when there was a shortage scarcity in open market due to hoarding-restricted supply, rigging and the middle men. This is one of the commodities which determine the prices of vegetables as well. There becomes a glut when the farmer brings his product in the market. Each and every effort is made by the auctioneers to deprive the cultivator of his due. Once the season is over the prices start escalating steeply due to manipulations, hoarding, profiteering etc. It’s the onion which kept the BJP out of power for full 15 years in Delhi.
The government should at once stop the exports of onions, potatoes and dairy products. It will not harm it in the coming elections, since the farmer is not going to be affected in any way. However if it fails to restrict the prices of commodities it will have to face the music. Don't you see how the public responded to Kejriwal?!
The government has decided to sell onions and vegetables through DMS-Delhi Milk Scheme booths. The idea is not bad, but one must learn from the Mother Dairy experience. Mother dairy prices are more than the retail market. Vegetables are of inferior quality. There is no air conditioning. Vegetables are not sprinkled water regularly-continuously as is desired. One cannot buy good quality fruits at reasonable rated from here. It smells of corruption at every level. Going by the experience in today's scenario, it’s the Mothers dairy which is responsible for hiking the prices.Its operational costs are many times more than a vendor-retailer. Fat salaries, maintenance, cost of land and machinery is all on the higher side-pushing inflation.
In fact it needs over haul, efficiency, modernisation control over the costs.
The grower should be free to sell his produce freely anywhere.Government's decision of fixing a limit on the quantity of onions and potatoes wholesalers stock will not help in curbing hoarding/prices.
It was onion, which brought Congress to power for full 15 years, in Delhi. There were evidences, which conclusively showed that Congressmen hoarded onion and manipulated the prices. And this time pulses are horded in thousands of tonnes to increase the prices of these essential commodities. Only import is not the solution. The hoarders should be booked and jailed for life term-till death. The prices of vegetables are rigged. They are tripled by the time they reach the consumer. Mother dairy is another factor which is directly responsible for the astronomically increases prices of vegetables and milk. Who will rein them?![14.056.2015]


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