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Wednesday, June 26, 2019

Macro economic policies

Unfortunately,  the government cannot be run by one or a few individuals intentions ,however good they may be:- like ensuring toilets, electricity and roads to villages etc.


But macro economic policies, especially, for a huge population consisting of drastically different economic strata ( I mean economic / income/ affordability to spend factors) need multitude of businesses and employment opportunities.


Though, the government  may not be able to fund and follow all activities generating such conditions as all welfare measures cannot happen through top down percolation of benefits, the least, the government can do is to create a conducive atmosphere to create bottoms up organic growth of businesses, where MSMEs can function without fear of excessive harassment in the form of compliance ( it has only replaced red-tapism) and most importantly device plans to generate the much needed in big capitals LIQUIDITY, if not as hard currency at least as electronic currency.



Everyone knows, that in this country what percentage pays income tax ( whether it should continue at all?) and also what is the percentage of organized sector ? Then, why and how can or must we try to control every movement of currency. It is like a story of trying to kill a rat set the whole house on fire.



How the government is going to overcome the two major problems of liquidity crisis and employment crisis must be prioritized and left to experts and markets without letting in populist measures interfering in the process.



The reality is obvious that most businesses are either dull or suffering without investment for scaling up. 



While it is important to nab and nail down defaulters through a multitude of post morten departments like DRTs, ARCs, NCLT etc .



Government must also focus of economic health care departments and global investors confidence boosting actions ( not mere slogans, intentions and incentives).



The reality is obviously reflected in the vacant hotel rooms and restaurants; unsold real estate assets of all types; reduction in internal tourism ( the most important income generating and also most neglected area). Fortunately, pilgrimage tourism is in tact.



The government is aware of and armed with exact data on all parameters and how they are going to address them is going to decide the future of economy , political survival ( which cannot be taken for granted if visible and real economic development and actual employments do not take place) and even the very integrity of the nation. 



Religious fever and affinity and common enemy may be good factors for elect​oral politics but will not get continued patronage when the stomachs and purses are empty.


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