.comment-link {margin-left:.6em;}

notebook transformation

Tuesday, February 17, 2009

Yechuri displays simliar understanding

From ET:

Notwithstanding the constitutional limitations of an interim budget and a vote on account, the UPA government appears to remain in a state of total denial about the gravity of the impact of the global recession on India. An interim budget can be an expression of the government’s declaration of intent and a balance sheet of its achievements during the last five years — an election pamphlet.

It can also give expression to the government’s reasoning on how to tackle this impact of the global crisis through increased public expenditures. This is particularly true when it is universally acknowledged that the way out of the present crisis is through a massive fiscal stimulus. The future government can well decide on how to account for these expenditures, either through monetisation of the deficit or through tax proposals for additional revenue mobilisation. Remember, the Bush administration had left behind a budgetary deficit of over a trillion dollars for Obama, who has now gone further for greater fiscal expenditures.

Unfortunately, the UPA government has chosen the first of these two options. Thus, by not rising to the occasion, it will only contribute to compounding the misery on the people. Much of the tom-tomed fiscal stimulus packages, like the Rs 70,000-crore infrastructure projects, come from allocations previously made in the last budget. The fine-print of the budget figures tells us that over the allocations made last year, close to Rs 40,000 crore extra, has been spent.

This is less than 1% of India’s GDP. What is worse is that for the next fiscal, the capital plan expenditure is slated to decline by Rs 4,500 crore. Clearly, the government is relying on private investment through PPP projects for infrastructural development, which, in the context of a recession, is a dangerously erroneous strategy. The burdens will eventually fall on the people, further depressing their purchasing power like it is happening with the private airports today where user development charges are being levied to meet the revenue shortfalls.

Much is being made of the resurrection of Indian agriculture. The fact remains that less was spent than what was allocated. So is the case with the social services sector. Not only have allocations been not fully spent, but the allocations for the coming fiscal in crucial areas is lower than what is being spent this year. Rural employment sees a reduction of Rs 6,650 crore, rural development Rs 5,176.59 crore, urban development (notwithstanding the JNNURM) Rs 1,734.95 crore.

So, far from envisaging any quantum leap in public expenditure, we see the government continue to remain trapped in the neo-liberal framework of fiscal fundamentalism. It needs to be repeated that the only way to meet the disastrous impact of the global recession is to enlarge domestic demand through employment generated by public investments in a big way. Already the impact of the recession has seen large-scale job cuts. Insecurity stalks millions of workers in export sectors like textiles, garments, etc. And 71 diamond polishers have already committed suicide in Gujarat. Other areas like construction, commercial crops like cotton, rubber, coffee, etc., are seeing an alarming drop in activity.

Under these circumstances, no amount of bailout packages can redeem the situation. These may improve corporate balance sheets but they cannot generate greater domestic demand. This can be done only through a massive dose of public investment. Only the naïve would feel satisfied with the fact that we are the second fastest growing economy in the world. The projected 7.1% GDP growth is bound to be significantly scaled down once the actual figures come in.

With the fiscal deficit rising to 6% of the GDP as against the projected 2.5%, many neo-liberals would argue as to how the government can spend any more. It makes neither economic sense nor common sense to be pre-occupied with fiscal deficit concerns under recessionary conditions. After a five-year run of over 20% growth of revenue surpluses, this year has seen a shortfall of an alarming Rs 60,000 crore tax revenue. This is precisely because of the global recession.

Further, despite a record foodgrain output of 230 million, the government has reduced the allocation of foodgrains to the states, in some cases to the tune of a massive 73%. This means, the government is stocking these foodgrains in its godowns paying a very heavy carrying cost which contributes to the burgeoning fiscal deficit. What is worse is the fact that the projected fiscal deficit for the next year is 5.5%, i.e., instead of expanding public investments, the government is planning a contraction of public expenditure.

It is this neo-liberal mindset of fiscal fundamentalism that needs to be jettisoned and a courageous ‘new deal’ of massive public investments must be undertaken. These are times for Keynesian fundamentalism.


  • Hello everyone!
    I would like to burn a theme at here. There is such a nicey, called HYIP, or High Yield Investment Program. It reminds of financial piramyde, but in rare cases one may happen to meet a company that really pays up to 2% daily not on invested money, but from real profits.

    For several years , I earn money with the help of these programs.
    I'm with no money problems now, but there are heights that must be conquered . I make 2G daily, and my first investment was 500 dollars only.
    Right now, I managed to catch a guaranteed variant to make a sharp rise . Turn to my web site to get additional info.

    http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]

    By Anonymous Anonymous, at 4:28 PM  

  • [u][b]Xrumer[/b][/u]

    [b]Xrumer SEO Professionals

    As Xrumer experts, we possess been using [url=http://www.xrumer-seo.com]Xrumer[/url] for the benefit of a wish fix now and know how to harness the titanic power of Xrumer and build it into a Banknotes machine.

    We also provide the cheapest prices on the market. Numberless competitors devise order 2x or square 3x and a end of the term 5x what we charge you. But we feel in providing prominent help at a tearful affordable rate. The large something of purchasing Xrumer blasts is because it is a cheaper variant to buying Xrumer. So we aim to support that bit in recollection and afford you with the cheapest censure possible.

    Not just do we have the most successfully prices but our turnaround in the good old days b simultaneously payment your Xrumer posting is wonderful fast. We will pull someone's leg your posting done before you certain it.

    We also cater you with a roundish log of successful posts on different forums. So that you can get the idea also in behalf of yourself the power of Xrumer and how we get harnessed it to help your site.[/b]

    [b]Search Engine Optimization

    Using Xrumer you can expect to realize thousands upon thousands of backlinks in behalf of your site. Scads of the forums that your Place you will be posted on bear exalted PageRank. Having your association on these sites can truly help strengthen up some top-grade dignity back links and as a matter of fact boost your Alexa Rating and Google PageRank rating owing to the roof.

    This is making your instal more and more popular. And with this better in popularity as superbly as PageRank you can envisage to lead your place really filthy high in those Search Mechanism Results.

    The amount of conveyance that can be obtained nearby harnessing the power of Xrumer is enormous. You are publishing your situation to tens of thousands of forums. With our higher packages you may even be publishing your locality to HUNDREDS of THOUSANDS of forums. Create 1 post on a popular forum drive by get 1000 or so views, with say 100 of those people visiting your site. At once create tens of thousands of posts on fashionable forums all getting 1000 views each. Your traffic will associate because of the roof.

    These are all targeted visitors that are interested or bizarre in the matter of your site. Deem how assorted sales or leads you can achieve with this considerable figure up of targeted visitors. You are line for line stumbling upon a goldmine bright to be picked and profited from.

    Retain, Shipping is Money.



    By Anonymous Anonymous, at 5:13 PM  

  • Validate Our Impuissant Prices at www.Pharmashack.com, The Unequalled [b][url=http://www.pharmashack.com]Online Chemist's look everywhere in [/url][/b] To [url=http://www.pharmashack.com]Buy Viagra[/url] Online ! You Can also Quiet Mammoth Deals When You [url=http://www.pharmashack.com/en/item/cialis.html]Buy Cialis[/url] and When You You [url=http://www.pharmashack.com/en/item/levitra.html]Buy Levitra[/url] Online. We Also Have a Pithy Generic [url=http://www.pharmashack.com/en/item/phentermine.html]Phentermine[/url] On account of Your Regimen ! We Outfit Occupation signpost [url=http://www.pharmashack.com/en/item/viagra.html]Viagra[/url] and Also [url=http://www.pharmashack.com/en/item/generic_viagra.html]Generic Viagra[/url] !

    By Anonymous Anonymous, at 6:51 PM  

  • Infatuation casinos? scrutinization this teenaged [url=http://www.realcazinoz.com]casino[/url] president and tergiversate online casino games like slots, blackjack, roulette, baccarat and more at www.realcazinoz.com .
    you can also backfire the bucket our blooming [url=http://freecasinogames2010.webs.com]casino[/url] orientate at http://freecasinogames2010.webs.com and burgeon the overcharge the be ahead of prominent spondulix !
    another swaggerer [url=http://www.ttittancasino.com]casino spiele[/url] theme is www.ttittancasino.com , because german gamblers, array freed online casino bonus.

    By Anonymous Anonymous, at 8:42 PM  

  • http://lumerkoz.edu Excellent work, Nice Design http://rc8forum.com/members/Buy-Atenolol.aspx suspicion http://soundcloud.com/acyclovir recouped utilitarian http://www.lovespeaks.org/profiles/blogs/buy-elavil liens jfergusonci http://riderx.info/members/Buy-Meridia-Online.aspx embodies http://barborazychova.com/members/Buy-Nizoral.aspx avanti

    By Anonymous Anonymous, at 11:34 PM  

  • Making money on the internet is easy in the underground world of [URL=http://www.www.blackhatmoneymaker.com]blackhat link building[/URL], You are far from alone if you don't know what blackhat is. Blackhat marketing uses not-so-popular or not-so-known ways to generate an income online.

    By Anonymous Anonymous, at 6:25 PM  

  • [url=http://orderamoxicillin.webs.com/]buy amoxicillin uk online
    [/url] order amoxicillin online uk
    amoxicillin 500mg expiry date
    buy amoxicillin for dogs uk

    By Anonymous Anonymous, at 9:41 AM  

  • [url=http://ciproxin.webs.com/]buy ciprofloxacin[/url] buy ciprofloxacin uk
    buy cipro xr
    buy ciprofloxacin in uk

    By Anonymous Anonymous, at 3:55 PM  

  • [url=http://casodex-bicalutamide.webs.com/]buying Bicalutamide
    [/url] Bicalutin

    By Anonymous Anonymous, at 7:18 PM  

  • [url=http://cyclosporine.webs.com]czy neoral jest refundowany
    [/url] sandimmun fachinformation
    neoral gums
    cyclosporine hypertension treatment

    By Anonymous Anonymous, at 10:30 PM  

  • oZzy moved away some time ago, I miss his cock, for always hungry for making love.


    Visit my page :: hcg injections
    my page :: hcg injections

    By Anonymous Anonymous, at 6:20 AM  

  • http://www.microgiving.com/profile/lexapro sipralexa afbouwen
    http://www.microgiving.com/profile/ibuprofen motrin and ibuprofen
    http://www.microgiving.com/profile/ciprofloxacin cipro hc buy
    http://www.freewebs.com/ciprofloxacin500mg cifran drug
    http://www.freewebs.com/paxilonline paroxetine urinary retention

    By Anonymous Anonymous, at 6:27 PM  

  • By Anonymous Anonymous, at 9:26 PM  

  • comment 7, [url=http://buycarafateonline.tumblr.com]carafate online[/url]. comment 9, buy carafate suspension http://buycarafateonline.tumblr.com buy carafate
    comment 2, [url=http://buyesidrixonline.tumblr.com]esidrix online[/url]. comment 1, buy esidrix http://buyesidrixonline.tumblr.com esidrix order
    comment 6, [url=http://buyalesseonline.tumblr.com]order alesse birth control pills[/url]. comment 2, buy alesse 28 http://buyalesseonline.tumblr.com alesse does order matter

    By Anonymous Anonymous, at 7:23 PM  

  • comment 8, [url=http://buyverampilonline.tumblr.com]verampil buy[/url]. comment 4, cheap verampil http://buyverampilonline.tumblr.com verampil buy
    comment 1, [url=http://buyditropanonline.tumblr.com]buy ditropan[/url]. comment 7, buy ditropan tablets http://buyditropanonline.tumblr.com buy ditropan xl online
    comment 2, [url=http://buyropiniroleonline.tumblr.com]purchase ropinirole[/url]. comment 7, ropinirole order http://buyropiniroleonline.tumblr.com ropinirole buy

    By Anonymous Anonymous, at 4:51 PM  

  • comment 3, [url=http://buyanafranilnow.tumblr.com]buy anafranil online[/url]. comment 2, anafranil online canada http://buyanafranilnow.tumblr.com buy anafranil 25mg
    comment 7, [url=http://buyendeponline.tumblr.com]endep purchase[/url]. comment 8, endep order http://buyendeponline.tumblr.com endep order
    comment 3, [url=http://buylosartannow.tumblr.com]online losartan[/url]. comment 2, purchase losartan potassium http://buylosartannow.tumblr.com purchase losartan potassium

    By Anonymous Anonymous, at 7:18 AM  

  • By Blogger Lo Lo, at 5:57 AM  

  • Thank you for sharing your valuable information. It is very useful for us

    By Anonymous Nutritious Rice, at 3:34 AM  

Post a Comment

<< Home