Thursday, June 19, 2014


The Newly formed Indian Government- Under Narendra Modi
                                                                                                  The newly formed Indian government is facing adverse situation politically and financially.  The inflation is increasing. The  delayed and adverse monsoon  will  further increase the difficulties in controlling high inflation. Besides that the Iraq crisis is appears to be creating petroleum products more costly up to rupees 20000/-crores which will encourage the inflammatory trends in inflation.
                                                                                      In view of above the government will  be very much hard pressed. It will compel the government to take hard decisions in the financial matter. The people have a very high expectation from the Narendra Modi  without realizing the ground realities. The people must also realize that 'The talk by politicians during election are not always practical and logical and to handle the same while in the government is very hard from them. The same difficulties may be faced by the Modi government accordingly.
                                                                                     However government cannot escape from the hard  decisions which brings relief to the people in the long term. The Railway has already increase the fare by 14.2 % accordingly. The government will also have to rationalize the fuel,  food and fertilizer subsidies. The governmental spending will have to be curtailed  highhandedly. The support prices for the crops have to be increased gradually and slowly. The food security bill has to be rationalized so that only deserving  section of the society can only gets it benefits. The  amendment has to be brought in the Land Bill in order that 'It speed up the industrialization'. The employment can be only increased by rapid implementations of industrial projects. It also demands lebour reforms in order to smoothly run the industries.
                                                                                 Besides that tax relief has to be provided to the needy class of society and high income tax rate has to be fixed for rich and corporate sectors. In short the fiscal consolidation is the need of the hour.
                                                                       However  Narendra Modi has understood the situation in the right perceptive. He has already reorganized the several departments which are inter related. It will increase the efficiency of the government.  He has advised  his ministers not to appoint any of their relatives as their aides in order to avoid nepotism and corruption in the government. He has also given guide lines and time limits to the ministers and the top civil servant for implementing projects relating to their ministries. The top civil officers are also given permission to contact him directly in case of need. The ministers are suppose take prior approval of 'PMO' before going abroad and has to report 'PMO' within the specific limits how much purpose is served  out of their foreign tour. This will considerably save the government expenditure. He has advised ministers to implement the specific project in given time with warning that other people are  waiting in Que for the same job. He has also formed the ministrail committee for controlling the inflation as he knows that inflation control and the employment are the demands of the young voters who has given him very strong mandate. We have to watch the performance of the government at least for six month. We hope for the best as Narendra Modi has shown his will to tackle the important issues efficiently.
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