Why freebies are wrong in a Democracy

  Why Freebies are wrong in a democracy.

A very healthy democracy is sine qua non for fast and equitable development of the economy. Rule of the people, rule for the people and rule by the people with a commitment to serve the people for their welfare using the resources of the nation to the optimum level without any wastage in a democracy can  happen only if there are open discussions, transparent actions and accountability for lapses and failures and visible welfare, peace, prosperity  happiness and general acceptance of the administration for its efficiency, effectiveness and deliverance of products and services in a fair and equitable manner. Honesty and Integrity of the administration can be visible and assessable directly on the basis  behaviour of the people, progress of literacy rates, their educational standards,  electoral related details consisting of free and fair election, (selection of candidates for Legislative bodies inter-alia should have well proven leadership qualities and absolutely no criminal background whatsoever),happiness, welfare, political stability, economic achievements, wealth generation and its distribution, etc. While politicians need to take the initiative and provide the direction of the Country's progress, the bureaucrats, economists, educationists, social reformers, religious pandits and well wishers of the nation and people can take the country to achieve all good and intended benefits like peace, health, wealth and welfare for nation and the entire universe as well.     

Freebies offered to the electorate in different states and the Country  affect not only  the morale of democracy but also kill the democratic process by bringing in political instability, economic imbalance, social concerns and unhealthy and undesirable practices. What the Country requires to achieve the Developed Economic Status aimed at by the Visionary and Honourable PM by the year 2047 is enlightened public capable of appreciating the Country’s scarce but otherwise Very Rich Resources to develop the economy and contributing their might to achieve the economic growth and make the cake GDP as big as Possible so that the economic development is equitable bringing in  all round progress particularly to farmers  and ensuring welfare for all. Expansion of all round Infrastructure , agricultural, industrial growth and benefits of  whole sale economies  with sound and  benign  business models and logistics using optimally the factors of production which include even the time management are all within our reach provided the ease of doing business is made really easy , comfortable and  adequately regulated and monitored with integrity of  supporting data. Land,  Labour and Legal reforms if expedited and implemented early and earnestly can be a very great relief to make the ease of doing business a reality. Readiness to think and act is all that matters.    

The generation of black money through corrupt practices designed by a few policy makers and administrators, protected by weak legal system and encouraged by a few bad elements in the society with selfish interests ignoring the enviable image of the culture, heritage, beautiful civilisation and well aimed wealth creation for equitable distribution and enjoyment of the humanity as a whole taking advantage of nature and its magnanimous benevolence needs to be nipped in the bud itself  with the aid of technology, moral suasion and persuasion and this is possible and easily achievable as majority of the people are for established good values, known  ethics and always working and praying for the well being of all everywhere in all ways and more than always. Freebies add to the financial burden to the public particularly the tax payers and also compels the Government to resort to fiscal adjustments to make up the revenue losses because of freebies and lose control on the financial discipline envisaged for management of public Finance. This sort of enticement of public needs to be avoided at any cost as part of build up of healthy democracy. Public also needs to be made to think and act in the interest of State's development with very prudent management of public finance. An enlightened public having knowledge of state finances cannot expect freebies in the normal course and that too during election time in particular as there is nothing called free lunch from the General Administration involving public Finance.

Let there be noble thoughts, actions from all and everywhere to bring in universal welfare for all living beings.

TVG Krishnan

(views are Personal)

Some economic and Social Issues to be taken care of to improve the quality of Life for all

 Some economic and social Issues to be dealt with to enhance the image of the Country and the quality of life of the masses. 

  

     “He  who sees Action in Inaction and Inaction in Action, he is intelligent among men.”

                                                                                          Bhagavat Geetha

This seems to be very apt and has come true in every sense of the word  in the Administration of the Country and management of the economy under the intelligent  leadership, imaginative policies and very dynamic and bold approach which cannot be ignored or undone by any force any time in future. Great achievement indeed by any Government by any standard. The Political stability seen of late has been bringing in unprecedented Trust in the capacity and potential of the Country to dream big and achieve the unachievable to be on top of the world as performer and provider of  all boons  to  the entire  humanity as a whole.  

  The country is  very vast  and  has  all sorts of resources adequate enough to take care of its economy and  its huge population . Fortunately, the democratic system of governance and the political set up has also enabled the Country to harness the resources and shape the economy in tune with the national and international dynamics of social, political and economic scenario and is in a strong position to influence economic growth fast and reach higher and enviable levels. But unfortunately the utilisation of resources  and the achievements thereof do not seem to be fully justifiable as some of the macro economic indicators fall far short of expectations and do not go with the aspirations of the majority of the  people to lead a happy , comfortable and tension free life. 

Inflation though has been brought under control and is said to be well within the band 4% and 6% set by the Monetary Policy Committee of the Reserve Bank of India, the fact remains that Inflation continues at the ground level and literally kills the poor, irritates the lower middle class, inconveniences the middle class in different ways , initiates intellectual discussions among the upper middle class on the pros and cons of inflation on savings, investments etc, makes the Rich totally unconcerned of inflation in their day to day life and compels policy makers, administrators and the Government to act swiftly to think of measures to ensure price stability and  smooth economic growth.The high cost of living and ever increasing prices of all services and commodities without exception Viz travel, education, insurance, medical and other living expenses not only adds to financial worries but also increases emotional and psychological pressures and tensions affecting day to day life and relationships among the vast majority of the people eroding the very credibility in the system of administration and Governance policies in vogue. The so called common Man a VIP so to say during election time in particular, in whose name Legislation, judiciary and Execution, policies get propagated, evolved, formulated, practiced and checks and balances are kept in place, unfortunately gets ignored and suffers the worst because of persistent inflation not knowing as to how to survive in life with some dignity, decency, honesty and some minimum quality of life. The Class and mass system not only prevail in the society but knowingly or unknowingly the power of money is allowed to show off with the power of POWER , MONEY and WEALTH. No doubt, with some monetary and fiscal policy measures, the inflation is somewhat technically and perhaps theoretically contained and  the  economy is allowed not only to grow fast but also is all set to achieve the target set to supersede all the advanced economies. But who benefits, how one benefits and how and where the branded common Man fits in the scheme of things is a matter to be seriously or rather introspectively analysed and remedial measures introduced without further loss of time and erosion of TRUST in Democracy and Democratic way of functioning. Some of the areas which perhaps call for review and special attention may be:

Simultaneous Existence of Varieties of Taxes over and above GST on almost all items need a revisit in public Interest and  greater public good. Reduce the complexities of taxes and see that the tax is simple, equitable, non inflationary and sufficient enough to take care of the economic growth and the country is free from debt burden. The present tax system  affecting the people literally from cradle to grave and beyond even definitely calls for a review and  new ways and means should be thought of raising revenues to meet the developmental goals and ensuring voluntary compliance of taxes by the people. It is time to think afresh and introduce tax reforms early. With 140 crores of people coupled with large resources of wealth accumulated in different forms, this should not be a difficult process .   

Per Capita Income continues to be low and far behind compared to even some of the poorer economies and not in tune with the growth of GDP needs a relook and calls for policy initiatives to correct the imbalance.The fast widening inequality seen among the people is definitely a cause for worry as it adversely affects the envisaged economic growth and living conditions of the vast majority of the population. An average man just wants to make both ends meet with some clothes to wear and a shelter to sleep. Once this is assured, then comes the quality of life with Social and Psychological needs to satisfy which may or may not happen. The inflation for such an average man needs to be factored into economic policies and their implementation. Misery for majority everywhere and happiness for a few here and there cannot go well among the people and this happiness is no happiness at all.    

The Financial System though seems to be sound and very dynamic, carries risks of very high order in the form of camouflaged and potential NPAs through connected lending, favored lending and creative accounting practices. The method of subsiding loans and losses through depositors and other stakeholders of institutions cannot  go on forever to keep the Financial system stable and steady.Time has come to remind the management of institutions that the Customers are the base and Customers cannot be an ignored lot for the very survival of the business.This awareness should be the very theme of Governance and this should be understood, digested and kept in mind at all levels of management including accounting, auditing and regulation.Technology is good but technology ignoring and condemning human resources for their intelligence, emotions, sentiments and positive thoughts, capabilities can only do more harm than good. There should be a judicious mix of Technology and Human resources to enjoy the optimum benefits of both. 

Prevalence of black money and Corruption affect the society and the economy  very badly and unfortunately getting legalised and institutionalised with the increase of freebies and mushroom growth of service providers for all  sorts of services like issue of Aadhar Cards, Passports, Pan Cards,Driving Licenses, Power Of Attorney  and  services related to Real Estate Registrar  etc. 

Since the fruits of development do not get adequately and evenly distributed for some policy or other, Is it not time yet  for all  directly or indirectly associated with Economic development  to  strive constantly to serve for the welfare of all by devotion to selfless work. To quote Bhagavad Gita “one attains the supreme Goal of Life through selfless service and pursuit of the greater good”. The action and inaction of all involved in public service can only be evaluated based on the welfare of the masses. The nation needs drastic cultural change through a well planned and well directed educational system devoid of greed, corruption and corrupt practices in the generation of wealth, distribution of wealth and utilisation of wealth ensuring welfare of all everywhere. A very few people involved in administration cannot and should not spoil the Culture and bring in undesirable and non appreciable actions and inactions spoiling the healthy, happy and peaceful life of the masses. Their aspirations for a simple quality life are by any means achievable and justifiable by any reckoning. Good Governance can definitely  make Life both beautiful and interesting for all.    

 Loka Samastha Sukhino Bhavanthu

T V G Krishnan

A Senior Citizen.

(personal Views). 

Monetary Policy well Balanced

 RBI’s Monetary Policy 2023-2024.

Kudos to RBI for maintaining the status quo in keeping all the monetary policy rates VIZ REPO, SDF and MSF unchanged at 6.5%,MSF at 6.25% and 6.75% respectively well in tune with the fiscal policy  as per the interim budget and projecting the GDP growth at 7% for the financial year 2024-25 and inflation under manageable level well with in the band 4 and 6% . No doubt this nimble  policy announcement in the midst of continuing global uncertainties  in political and economic scenarios is not only encouraging but also reflecting on the strength of the domestic  political stability and economic resilience demonstrated along with social and technological advancements despite some issues cropping up on regulatory compliance here and there. The rationalisation of interest rates policy expected to cover various charges and introduction of measures to bring in a level playing field among various financial institutions including fin techs will definitely bring in the much needed financial stability and sustenance of credibility in the compliance system. The transmission of the monetary policy if done effectively as per RBI's expectations, the liquidity issue will definitely be taken care of. Overall the monetary is well balanced and very promising to support the  economic growth plan envisaged by the Government. 

T V G Krishnan        

Right and very appreciable approach to Disinvestment of PSUs

  Right and Very appreciable approach to Disinvestment of PSUs

Apropos your editorial On PSUs, GOI Has taken The Right Call (ET dated 5/2/24),the approach of the Government in not going for disinvestment of  PSUs to find resources is very apt and highly appreciable as the PSUs have shown their mettle and are able to deliver,  of late, the much needed returns on investments to the Government and other investors and  provide the competitive spirit to make the private sector to perform and excel. The PSUs presence is very essential not only to take the economy forward very fast but also to show the private sector that they can deliver better governance and professionalism as the hallmarks for any institution to survive and perform. Nothing wrong if the public sector coexists with the private sector and helps the Government financially to achieve the target of being a developed economy by 2047 or even before. It also helps to make  the capital market very strong and vibrant. This is only a reflection of political stability and good economics. Good going indeed.  

T V G Krishnan

Bengaluru 560076.

  Meaningful  Interim Budget 2024-25

This refers to Low Key Interim Budget but drab is fab, FM (ATM, Feb 4). The FM's interim budget is politically stimulating, economically encouraging, socially acceptable and desirable and technologically sensible to put it in a nutshell. The FM deserves all kudos for making the budget a meaningful exercise to take the economy forward with all ingredients devoid of any popular attractions particularly freebies. This is something unique in all her budgets highly appreciable and worth commendable as budgets are not intended to offer freebies to canvass votes but are official documents to guide the policy makers and people to plan the economic growth, perform to the best of abilities and share the fruits of development equitably and enjoy the wealth for the welfare of all. The culture of offering freebies, incentives etc are nothing but corrupt practices spoiling the culture of healthy democracy and ruining the initiatives and skill of the people to excel and display their potential to perform to the optimum. From this angle , the FM's budgets deserve all appreciation , support and encouragement. It makes the democratic system more mature and enlightened.   

T V G Krishnan

Bengaluru.