Monday, February 04, 2013

The Congress has won elections in 2014.

Congress supporters can start celebrating. The Congress has already won the elections by sheer cunning. Whether it is Garibi Hatao or massively bribing the " vote bank " with taxpayer money or accusing all Hindus of being terrorists the Congress knows how to brainwash the great unwashed. In 2009 it resorted to naked bribery by increasing salaries of useless, thieving civil servants by 80% and forgiving all loans to farmers but the masterstroke was the NREGA scheme which pays villagers for 100 days a year for fictitious work. This caused double digit inflation, forcing the RBI to raise interest rates, and soaring fiscal deficit which forced the government to raise taxes on everything which, in turn, reduced consumer spending and economic growth. However, a lot more money was needed to win in 2014 so petrol, cooking gas,electricity and railway ticket prices were increased. Now diesel price is being raised by 50 paise per month and electricity is set to rise again. The freeloading press hailed it as " big bang reform " and the stock market surged, although mostly because of foreign investors. To be sure some of these prices had to rise but how much of the rise is due to excess taxes we do not know. Certainly petrol is severely taxed and should be lowered as the diesel price is raised to bring them to parity. The Congress is gambling on the fact that all these changes are hurting the urban population while rural people, its real " vote bank ", are protected by the handouts. There was one little catch, which was that state governments were taking credit for the NREGA scheme, so to bypass the state governments, many of which are controlled by other parties, the Congress started a Direct Cash Transfer scheme under which cash would be transferred directly to bank accounts of rural people who will then withdraw it through ATM. Now there should be no confusion where the money is coming from. The second weapon is the Food Security bill which will be passed in the budget session of the parliament and cost Rs 1 trillion but the masterstroke this time is called the Backward Grant Fund which will dish out Rs 700 billion to 1500 backward sub-districts in the next 4 years. Rs 450 billion will be spent in the first 2 years after which another Rs 300 billion given to those who have achieved certain levels of development and introduced governance reforms. HT, 4 February. Small programs, such as those in Kalahandi, Balangir and Koraput in Orissa and in 80 Naxal districts will be scrapped. Apparently this will also shut up Bihar Chief Minister's demand for special status. A vast amount of money to bribe the electorate and to be used as campaign finance. Anyone objecting will be branded as a heartless brute wanting to harm the poor. Absolutely brilliant. No wonder the Congress has had a vice like grip on us since 1947. Start distributing laddoos.

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