Saturday, May 30, 2009

Two industrial bodies namely CII and FICCI have prepared a wishlist for the new government. They demand that interest rates should be cut by at least 50 basis points to spur industrial growth. It would also help the government reduce its interest outgo since government borrowing is set to zoom because of all the bribes doled out to win the election. Unfortunately food prices are still increasing at over 10% and if petrol and diesel prices are decontrolled, as demanded by the oil minster, food inflation could jump still higher. Already Saudis are predicting crude at $ 100 a barrel by the end of the year. Bye bye aam aadmi. They ask for simplification and lowering of taxes. A very good move which will stimulate domestic spending and increase demand. Again, with fiscal deficit at over 6% and debt, including those of the states, at around 80% of GDP there is very little room for maneuver. Not forgetting 79 ministers, each with attendant kleptocrats, requiring billions to service. The last demand is for good governance which means honesty and no corruption. I am sure politicians and kleptocrats will crack up at the joke. Why go through exhausting and expensive campaigning or spend hundreds of hours cramming for the civil service exams if you do not make enough so that at least five generations can live in luxury without having to work? We have to remember that Congress has promised 'continuity' which means that the aam aadmi will be kept naked while the khas will party in Delhi and other capitals of the world. Who wants a new world order when the old one is working so well?

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