Friday, September 27, 2013

Will the Congress ruin the nation to hang on to power.

The government has announced the setting up of the Seventh Pay Commission to bribe public sector employees before next year's general elections, just as they did in 2008 to win in 2009. Salaries of useless civil servants were increased by 80% which only increased their " bribe price ". If a man is earning Rs 10,000 per month he will not dare to demand more than a few hundred thousand rupees in bribes but if his salary is increased to one hundred thousand rupees per month he will start demanding in tens of millions. And that is what happened as scam after scam has shown. This year the government has budgeted Rs 1.15 trillion to pay salaries of 3.41 million civil servants. 10 years ago it spent Rs 310 billion on 3.22 million employees, almost the same number. The government has also been increasing the Dearness Allowance of its employees which has now reached 88% of basic salary. While every citizen is suffering the effects of inflation, especially the poor, the taxpayer is having to subsidise this useless bunch. This when clinics in villages have no doctors and schools have no teachers. A reduction of just 5% in employee numbers will save Rs 60 billion a year and a reduction of 10% will save Rs 120 billion. Combined salaries and perks of employees of public sector banks now cost 150% of those in the private sector. This is as per the Reserve Bank of India. At a time when the government is cutting spending on infrastructure to limit fiscal deficit to 4.8% of GDP this will be a disaster for the country. Last time the Congress also waived all loans to farmers, at the cost of Rs 700 billion. Guess what? Loans given to farmers on the Kisan Credit Cards reached Rs 1.6 trillion till March 2012 and will surely have crossed Rs 2 trillion by now. Banks do not show these as bad loans on their books as they are just rolled over including rising interest. The State Bank's exposure is Rs 440 billion, that of Central Bank Rs 82.48 billion while that of the Bank of Maharashtra is Rs 20.45 billion. Farmers are no fools. They can recognise a gravy train when they see one. They know that come elections all debt will forgiven once more. So they pile it on. This is financial terrorism by the Congress. Ruining the nation's economy just to hang on to power. Will the people survive?

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