Friday, July 04, 2014

Softly softly catchee monkey.

The Congress has not only left behind a bankrupt government it has left behind unpaid subsidy bills of over Rs 1 trillion. The new government is faced with problems which look impossible to solve. Infrastructure needs $1 trillion over the next 5 years because without roads, power, railways, airports, healthcare and education the economy cannot grow. The poor are used to handouts and will raise an enormous howl if they are stopped, giving the opposition a stick to beat the BJP with. The previous Finance Minister cooked the books to meet his target of fiscal deficit but failed to meet his revenue deficit target. The falling growth rate meant less tax collections, looting vast sums from Public Sector Undertakings made their shares unappetizing for private investors and very high taxes reduced consumption, reducing growth further. Tax rates in India are already very high and everyone is screaming for tax cuts. Tax cuts will immediately stimulate the economy by increasing consumer spending and may bring down inflation as cost of goods and services go down. But then where will the government get money for projects which will make the country rich in the long term. The government can start by making huge savings on political beggars who get elected to milk the taxpayer. The previous Chief Minister of Delhi had 31 Air Conditioners in her official residence, 15 air coolers, 16 air purifiers, and 12 geysers. So what, you say, it must be a very large house. There in lies the wonder of the story. The house has only 3 bedrooms, 5 bathrooms, one very large drawing room and one dining room. So where do you fit 31 ACs. It also has 6 quarters for servants. Presumably they also had ACs and, being free, would have been running them 24 hours a day. So electricity charges more than doubled for ordinary citizens and we suffer regular power cuts because this woman was guzzling all the electricity while not increasing the power supply of the capital in the 15 years that she was the queen bee. No wonder the Congress hastily made her the Governor of Kerala before being booted out by the people. If she had any sharam or izzat she would resign and face us. But, of course, she won't. Then there are allegations about interest free loans and prime land in Mumbai given to Associated Journals Ltd in which Ms Sonia Gandhi apparently has significant interest. So there it is. Lots of money to be had. But these are powerful people with connections to foreign governments so Mr Modi has to be careful. Softly, softly catchee monkey as they used to say in Ghana. 

No comments: