How bad is it really?

An angry article questioning the figures put out by the IMF in a pink paper today. Is it angry because the IMF says growth will be 4.6% as opposed to 4.9% predicted by the World Famous Economist or is it because the IMF recommends higher interest rates to control retail inflation while our most revered Finance Minister keeps banging on about lower rates to stimulate growth. It does not matter because the Congress is facing a wipe out in the coming elections and the next government will have to deal with the disaster it is leaving behind. With creative accounting and massaged figures we, the people have no idea as to the real state of the economy so we hunt for clues. After creating the huge fiscal deficit and soaring inflation with his handouts the Finance Minister has cut Rs 310 billion from the from social schemes such as healthcare, rural roads, education, rural housing, drinking water and sanitation. To do that in an election year is surely a sign of desperation that the fiscal deficit cannot be controlled even after spectrum for cell phones was auctioned for Rs 610 billion and will leave leading telecom companies with a total debt of Rs 920 billion because their licenses come up for renewal next year. This will force companies to raise rates hitting the poor who love their cell phones. To pay for the innumerable social schemes the Congress was looking to raise money from every source possible. One was to ask for an upfront payment from private companies who were given contracts to build roads. This was called a premium. After paying this extortion money, the obligatory bribes to politicians and civil servants and exorbitant costs to acquire land companies were charging very high rates of toll from users, leading to great anger. The first toll between Delhi and Gurgaon has now gone but people are asking for all toll plazas to be removed. Along with social schemes the Congress bribed vast numbers of useless civil servants with massive salary increases. They also enjoy a bonus called Dearness Allowance which is linked to inflation and has risen to 100% of basic salary. The Congress has decided to merge DA with basic salary which will double pensions and other allowances. By treating the poor as beggars the Congress has only increased poverty. A study suggests that poverty is 2.5 times what the government figures show. It is not just bad, it is shocking.