Dr.T.V.Gopalakrishnan , Mumbai , says: TMC's reaction to the Railway budget smacks of bad politics over good economics.This is not pro-poor in the long run.The economy has to grow fast to remove poverty and Railways play a key role in facilitating this growth. This is a vital infrastucture and it needs to be developed to ensure equitable distribution of nation's wealth and inclusive growth. At this rate,the growth of the economy and upliftment of the masses will remain a distant dream and this sort of shortsightedness on the part of Powerful,influential and popular politicians has an adverse and damaging imapct on the economy.
15 Mar 2012, 1818 hrs IST
This in response to the opinion poll in ET.
(This appeared in ET dated 15/03/12)
Dr.T.V.Gopalakrishnan
Showing posts with label poverty. Show all posts
Showing posts with label poverty. Show all posts
Thursday, March 15, 2012
Thursday, March 1, 2012
Taxation policy needs accurate data
Taxation policy and our Data System
This refers to the debate "should there be a super rich Tax?" ( Business standard Feb 29,2012).The concept of super rich tax has been engaging the attention of advanced countries for quite some time and even some of the highly rich individuals in these countries have volunteered to contribue to rescue the economies from financial crisis.The taxation policy should be very fair and those who earn and accummulate wealth have to naturally come to the rescue of the poor who are not only below the poverty line but are also virtually starving without even a single meala day. The equitable distribution of nation's wealth is the responsibility of the Govt and it is unfortunate to observe that only 3 percent of our population is paying tax which is absurd and not tolerable when nearly 80 percent of the population lives on less than Rs 20 a day and 77 percent of our Ministers and 300 MPS who frame the policies for the people are millionaires.
This sort of situation naturally gives room for doubt whether the economic policies so far pursued in the name of AAM ADMI have been on the right track?The major problem faced in the economy is the absence of accurate data/ information and the economy which supports the whole world with its Information Technology power has not been able to put into optimum use of its IT power to generate proper data system. Mr Kamath Chairman ICICI BANK and Infosys is right for his observation under Chinese Whispers colum next to the debate column BS dated Feb29 that there is a lot of growth that gets lost due to inefficiencies in our data collection mechanism ,largely omissions and there is growth that is not recorded in the system. This is more or less true in our data relating to tax, people below poverty line, inflation, employment etc. It is time for the Govt to aim to capture exact data so that the policies that are pursued towards eradication of the ills of the economies achieve the desired result. Even the Governor of the Reserve Bank once sounded on the need for accurate data to frame policies. Taxation policy needs all the more accurate data to assess and decide equitable distribution of wealth of the nation.
Dr.T.V.Gopalakrishnan
( An edited version of this appeared in Business Standard dt1/03/12)
This refers to the debate "should there be a super rich Tax?" ( Business standard Feb 29,2012).The concept of super rich tax has been engaging the attention of advanced countries for quite some time and even some of the highly rich individuals in these countries have volunteered to contribue to rescue the economies from financial crisis.The taxation policy should be very fair and those who earn and accummulate wealth have to naturally come to the rescue of the poor who are not only below the poverty line but are also virtually starving without even a single meala day. The equitable distribution of nation's wealth is the responsibility of the Govt and it is unfortunate to observe that only 3 percent of our population is paying tax which is absurd and not tolerable when nearly 80 percent of the population lives on less than Rs 20 a day and 77 percent of our Ministers and 300 MPS who frame the policies for the people are millionaires.
This sort of situation naturally gives room for doubt whether the economic policies so far pursued in the name of AAM ADMI have been on the right track?The major problem faced in the economy is the absence of accurate data/ information and the economy which supports the whole world with its Information Technology power has not been able to put into optimum use of its IT power to generate proper data system. Mr Kamath Chairman ICICI BANK and Infosys is right for his observation under Chinese Whispers colum next to the debate column BS dated Feb29 that there is a lot of growth that gets lost due to inefficiencies in our data collection mechanism ,largely omissions and there is growth that is not recorded in the system. This is more or less true in our data relating to tax, people below poverty line, inflation, employment etc. It is time for the Govt to aim to capture exact data so that the policies that are pursued towards eradication of the ills of the economies achieve the desired result. Even the Governor of the Reserve Bank once sounded on the need for accurate data to frame policies. Taxation policy needs all the more accurate data to assess and decide equitable distribution of wealth of the nation.
Dr.T.V.Gopalakrishnan
( An edited version of this appeared in Business Standard dt1/03/12)
Sunday, January 8, 2012
India and Hybrid car, Affordability of people
Dr.T.V.Gopalakrishnan , Mumbai , says: Manufacturers are ready for hybrid cars,but in terms of infrastructure,inequality of income and ever increasing oil prices, persistent level of poverty,the economy is not ready. Some industrialists and well off people who enjoy lots of black money can certainly afford high brid cars. If black money holding is the criteria many can afford and will go for these hybrid cars. But an average honest Indian cannot afford even to own a vehicle is a fact if one goes by the poverty level, rate of inflation, unemployment, hand to mouth existence etc.Reality cannot be and should not be hidden by displaying prospirity and wealth among a miniscule percentage of population who can afford and who are eager to own hybrid cars.
8 Jan 2012, 2127 hrs IST
(This appeared in ET dated 9/01/12)
8 Jan 2012, 2127 hrs IST
(This appeared in ET dated 9/01/12)
Monday, October 10, 2011
Perpetual poverty of India
(This is in response to a write-up in ET dated 09/10/11).
Not only the planning commission is out of touch with reality but the govt,the industrialists,the middle class, the religious leaders, social reformers and who ever talk of poverty are out of touch with reality.The success of the successive Govts for past six decades after independence is to have successfully manipulated the governance system and exploited the helpnesses of the masses to keep them in perpetual illiteracy and poverty.It is a shame for our politicians,industrialists and bureaucrats to have framed policies in the pretext of removing poverty and made themselves shamelessly rich. Statisticians have aided the policy makers by providing bogus figures on poverty and measurement of poverty standards.It is really surprising to find that this article is from a planning commissiom member which only shows that there are still some left in the Govt with some conscience and concern for the poor.What the economy needs is policy correction and strict implementation of policies with representatives of common people to keep a watch on policies and their implementation.Taxation policy pursued since 1990s widened the inequality of income and the conditions of the lower middle class and poor the worst beyond imagination.It does not require any superintelligence to understand the poverty in India. It is sufficient if our politicians, industrialists and bureaucrats travel in their cars keeping observing on both sides of the road and visit some slums spread all over the country.
T.V.Gopalakrishnan
Not only the planning commission is out of touch with reality but the govt,the industrialists,the middle class, the religious leaders, social reformers and who ever talk of poverty are out of touch with reality.The success of the successive Govts for past six decades after independence is to have successfully manipulated the governance system and exploited the helpnesses of the masses to keep them in perpetual illiteracy and poverty.It is a shame for our politicians,industrialists and bureaucrats to have framed policies in the pretext of removing poverty and made themselves shamelessly rich. Statisticians have aided the policy makers by providing bogus figures on poverty and measurement of poverty standards.It is really surprising to find that this article is from a planning commissiom member which only shows that there are still some left in the Govt with some conscience and concern for the poor.What the economy needs is policy correction and strict implementation of policies with representatives of common people to keep a watch on policies and their implementation.Taxation policy pursued since 1990s widened the inequality of income and the conditions of the lower middle class and poor the worst beyond imagination.It does not require any superintelligence to understand the poverty in India. It is sufficient if our politicians, industrialists and bureaucrats travel in their cars keeping observing on both sides of the road and visit some slums spread all over the country.
T.V.Gopalakrishnan
Tuesday, September 27, 2011
Poverty, Statistics, Politics and the common man
The editorial Poverty of Statistics is very apt. The Planning Commission's submission to the Supreme Court that a person who earns Rs 32( not 31 as indicated ) in urban area and Rs 27 in rural area should be treated above poverty line only reflects poor understanding of the poverty, or of the value of the rupee, or the inflation level prevailing in the economy, or the credibility of data by its Members. It also reflects poorly, the concern that the Members have for the people particularly the poor.It is okay if these poor people have access to some canteens maintained by the Govt and the food is made available at these rates.It is time to admit that there is no accuracy of data with regard to the poor people and the method of arriving at the poverty level has no consensus. The amount of subsidies and various poverty linked programmes do not benefit the poor are common knowledge. The UID is the only hope left now and hope some lasting solution to remove poverty will be found soon.
Dr.T.V.Gopalakrishnan.
(This appeared in The Hindu-Business Line Dt 27/09/11).
Friday, September 23, 2011
Rich and Poor A Paradoxical Situation in India
My response to the editorial"Teach people to Fish" appeared in ET dated 22/09/11.
The link is here
Your editorial Teach people to Fish is thought Provoking and commendable.The planning Commission's affidavit to Supreme Court that any one with a monthly expenditure of Rs 965 in urban area and Rs 781 in rural area would be deemed not poor is an indication that the members of Planning Commission are totally unaware of the ground realities as to how much Rs 965 and Rs 781 can fetch in the market taking into consideration the fall in the value of Rs and rise in the value of products. In urban areas,water costs Rs 15 a bottle,milk costs Rs25-30 a litre, fuel costs Rs 375 a cylinder and the lists go on. Rs 965 a month at best can help a person to live for 15 days and starve for the next 15 days.This sort of definition of poverty level only reflects the poor understanding of the market realities and the actual living conditions of the masses.This lack of knowledge reflects poorly in all policy formulation.The number and conditions of people below poverty level have not changed for past six decades after independence. It is time to acknowledge the naked truth that Rs 32 a day can fetch nothing in the present day inflationary situation and this awakening is needed among the policy makers that economic policies so far pursued have miserably failed and widened the gap between the rich and the poor. The fact that dividend earned in crores of Rs is tax free,wage of Rs 32 earned through hard physical labour is above poverty level is a paradox and the Govt is answerable for that.
Dr.T.V.Gopalakrishnan
The link is here
Your editorial Teach people to Fish is thought Provoking and commendable.The planning Commission's affidavit to Supreme Court that any one with a monthly expenditure of Rs 965 in urban area and Rs 781 in rural area would be deemed not poor is an indication that the members of Planning Commission are totally unaware of the ground realities as to how much Rs 965 and Rs 781 can fetch in the market taking into consideration the fall in the value of Rs and rise in the value of products. In urban areas,water costs Rs 15 a bottle,milk costs Rs25-30 a litre, fuel costs Rs 375 a cylinder and the lists go on. Rs 965 a month at best can help a person to live for 15 days and starve for the next 15 days.This sort of definition of poverty level only reflects the poor understanding of the market realities and the actual living conditions of the masses.This lack of knowledge reflects poorly in all policy formulation.The number and conditions of people below poverty level have not changed for past six decades after independence. It is time to acknowledge the naked truth that Rs 32 a day can fetch nothing in the present day inflationary situation and this awakening is needed among the policy makers that economic policies so far pursued have miserably failed and widened the gap between the rich and the poor. The fact that dividend earned in crores of Rs is tax free,wage of Rs 32 earned through hard physical labour is above poverty level is a paradox and the Govt is answerable for that.
Dr.T.V.Gopalakrishnan
Monday, August 15, 2011
Independence in India and PM's speech
15 Aug, 2011 07:40
This appeared in ET E paper dated 15th August 2011.
T.V.G Krishnan
This is another year of Independence Day celeberation. Unfortunately, 64 years of independence, have not been helpul to remove the poverty from the Country and PMs have made wonderful speeches soothing only for the ear. If speeches can remove poverty and problems of this great nation, people can be happy as all the speeches since the 1st independence day to the lat one ie yesterday's will not lag behind. How long can the nation fool the masses is a big question that remains unanswered and our rotten politics, poor governance have only helped to create black money, corruption, and degeneration of society and its values. It is time for all Indians to introspect and see whether we are in the right track in our nation building efforts. Let us believe in actions based on morale, ethics, values and principles to achieve a welfare society. Speeches can wait.
This appeared in ET E paper dated 15th August 2011.
T.V.G Krishnan
(personal views).
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