Shortage of a hundred and fifty million rural employment jobs. Shortage of twenty five million urban employment jobs… Additional Rs 1 lakh crore required to replace urban slums… And Rs 10,000 crore required every year for five years to give justice to every Indian by ramping up the judiciary… Another Rs 20,000 crore required every year to make universal primary education a reality and have equality in education opportunities… And additional Rs 10,000 crore required annually to give some basic access to health facilities… Welcome to India. A country where the hospital beds to population ratio is 1:1422, ranked 161 alongside sub-Saharan African countries, against an ideal ratio of 1:333 prescribed by the United Nations. A country with 2.4 million temples but only 1.4 million temples of education i.e. schools… A country with 30 million cases pending in courts, making life hell for the common man who wants justice, because our courts have only 12 judges per million population compared to 120 judges per million in the developed world.

In the middle of such an environment, what’s the role of an annual budget? Is it to maintain status quo or to give the world a robust signal that we are committed to our people – the 45 crore people who earn below 1.25 dollars a day? If the objective is to maintain the status quo, then Pranabda has delivered a perfect budget, as loudly proclaimed by each and every member of the equally objectiveless and visionless industry organisations like FICCI, CII and ASSOCHAM etc. They were too happy that the entire stimulus package had not been withdrawn. As it is, the spokespersons aren’t independent intellectuals. They are timid business men – however rich they might be – scared to ever speak against the government as their businesses are at stake! In most cases, they aren’t even capable of commenting on the budget, such low is their understanding. But they are the people who give the bytes and that’s what next days headlines look like in papers indirectly and directly owned by them and mostly run by sold out editors or editors intellectually incapable of analyzing a budget or how it needs to be. So the verdict that they have given is thumbs up!

The man on the street, of course, has no voice. And his concerns are of no importance to politicians or media. Media has no vision to effectively and constantly focus on their cause in order to effect a change. They are more interested in rapes, murders and sex, which keep the readers confined to intellectually dumbed-down dustbins of these media houses.

The truth, however, is that if we were to look at this budget from the perspective of people – those 45 crore that I mentioned above and another 35 crore who are just marginally better off – then this budget is a hoax for them. Allocations to the best scheme of the Sonia government, or for that matter any government in ages – the NREGA scheme – wasn’t even increased enough to cover the inflation! What was done was a mere increase from Rs 39,000 crore to about Rs 41,000 crore. At a point of time when the common man is being made to pay an astoundingly scary Rs 50 per kg for sugar and Rs 100 per kg for dal, when the food inflation has touched horrific proportions and when they were looking up to the budget for some relief, forget immediate relief measures, there were no signs of any long run relief either in this budget. No lip service even to stop hoarding. No measures to stop speculation in food. No recommendation of strict punishment to the hoarders and no announcement of using the country’s huge forex reserves to import basic food necessities to increase supply and reduce prices. In other words, totally shocking. The reference to the aam aadmi went missing. It was clearly a budget for the mango people who live in India and not the aam aadmi who lives in Bharat.

The long-run steps to increase agriculture growth through a new green revolution got a token Rs 400crore. Nothing could have been more hilarious. Now, NBFCs (non banking financial institutions) can open banks and Rahul Bajaj must be very happy with his part of lobbying. But the real requirement of financial inclusion, which reaches a rotting low of less than 200 million people compared to the required 900 million people, still remains unsolved. At a time when so much had to be done for the poor who are the direct sufferers of the high inflation, the government gave away Rs 26,000 crore to the middle class and rich through its new tax structure favouring the two per cent top class of people who pay taxes in this country! I have been always for lesser taxes to increase tax base, but in a year like this, such a move was a bit too much to accept, especially when compared to the lack of commitment of resources for the bottom 70 percent people.    
Read More....

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website


------------------------------------------------------------------------------------------------------------------
 
 
In the first week of January 2010, most newspapers carried a stunning report. And the report was based on data from the Central Statistical Organisation, which revealed that Bihar has clocked the second highest growth rate in the country, only second to Gujarat, between the period 2004/05 and 2008/09. Although in the same period, most of the backward states have shown a reasonably decent growth rate, but none could match up to Bihar. And what is even more remarkable is the manner in which the state has turned around. It was only in 2003/04 that it had shown a (de)growth of a negative 5.15%. Five years hence, the state has an aggregated growth of 11.03%, beating all conventions.

Initially, analysts were skeptical about the data, but once it was reported that the data had been released by CSO – a central government agency – all doubts were put to rest. What is more interesting is the fact that most of the growth has taken under Nitish Kumar’s regime – which also proves that howsoever poor a state might be, finally it all depends on an able leader whether a transformation can occur. And all credit should go to Nitish Kumar for his intent and a proper follow-through with governance. It is not just Bihar – the same can be said with respect to Uttarakhand, Orissa, Jharkhand and Chattisgarh, as these states have clocked growth rates of 9.31%, 8.74%, 8.45% and 7.35% respectively for the same period, beating the conventional growth rates that had been seen over the years. What is even more intriguing and creditworthy is that of these states, four states – namely Bihar, Uttarakhand, Orissa and Jharkhand – have beaten the national growth rate of 8.45% during the same period!

But then, without taking away any credit from these states, there are a few issues that should also be taken into perspective for a more balanced evaluation. Though on the face of it, Bihar has stood second nationally, and next to Gujarat, but the fact is that the state has a long way to go to even get close to Gujarat in real terms. As we all know, growth rates are always relative. And in absolute terms, the growth of these states is nowhere close to that of Gujarat or a Maharashtra. States like Bihar, Jharkhand were growing on a very low base of historically languishing state GDP, whereas states like Gujarat and Maharashtra are already on a much larger base. Therefore, if states like Bihar, Orissa et al have to catch up and earn any kind of parity with other progressive states, then they have to grow even faster than the latter. Other than this, a high growth rate also does not guarantee that the growth is uniform – encompassing all sections across the state. A case in point has been Madhu Koda’s government. We all know the level of corruption that states like Jharkhand have been subjected to in the past few years. Indications now also are very clear that the so called growth rates have actually not touched upon the masses in these states – and this is not good news at all. As this means that the income disparity has grown not only at the national level, but to a large extent at the states’ level too. Along with all this, we also know that these newly praised states are also the states which are subjected to the maximum number of Naxal atrocities, which is also an indicator that though apparently the states have scored well on growth, the masses still remain disconnected. I’ve written about this a number of times earlier and would like to reiterate here that Naxalism has a deep connect with poverty. Over the years, Naxalites have prospered only in those states where poverty has been deep-rooted; and that’s why we don’t hear about the Naxal menace in Gujarat, even though we hear about the same in Maharashtra (because there are poor pockets in Maharashtra where Naxals thrive).     Read More....

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School Detail
IIPM makes business education truly global
IIPM’s Management Consulting Arm - Planman Consulting
Arindam Chaudhuri (IIPM Dean) – ‘Every human being is a diamond’
Arindam Chaudhuri – Everything is not in our hands
Planman Technologies – IT Solutions at your finger tips
Planman Consulting
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine

IIPM ranked No 1 B-School in India
domain-b.com : IIPM ranked ahead of IIMs
IIPM: Management Education India
Prof. Rajita Chaudhuri's Website


------------------------------------------------------------------------------------------------------------------