Tuesday, August 02, 2011

Politicians are ecstatic that private companies have promised to pay Rs 320 billion to build highways. In a kind of auction construction companies bid for the privilege of building roads for the government. This must be an Indian miracle seen nowhere else on the planet where the government not only does not spend a paisa for road building but rakes in billions of rupees. This has 2 effects. One, since these companies have already spent huge amounts of cash to be awarded a project they resort to substandard construction so that roads develop potholes after one rain shower. The murder of a government engineer in Bihar, who reported such work, is an example. Second, constructors will be allowed to charge toll every 50 kms making windfall profits. That is why they are paying this official bribe. This is an insidious tax on car owners. About half the price of every car sold in India is tax. On top of that we have to pay a lifetime road tax at the time of purchase and petrol is highly taxed. The reason why motorists have to pay extortionate taxes is because the government is bankrupt. Government controlled Air India is being kept alive by a steady drip of taxpayer money because criminal politicians and thieving, parasitic civil servants travel free with family and friends. Air India's losses are to reach Rs 1 trillion but the politicians will not allow restructuring or get professional managers to run the company because that will expose all the corruption in the airline. More sinister, politicians deliberately price cars out of the reach of the poor. They are determined to keep the aam aadmi naked and hungry. That way they can buy votes with alms.

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