Central government has approved 10% disinvestment of Coal India and Hindusthan Copper Limited . The question is who will be benefited ? One of my friends, who used to teach economics in a university philosophically replied that only the ex-employees of international financial institutions who are now managing the economic affairs of the country will be benefited from this. He further added that they are having some moral obligations to their ex-employers. They are not politicians in the sense that they generally do not contest in Loksabha election and hence they do not have any obligation to common Indian electorate .
I cannot understand how our FM has supported the move. So far as I know he is not supposed to pay price to any body for any obligation. He knows it well that because of the very strong nationalized banking system on the one hand and presence of equally strong public sector in the country, we could have overcome the recent economic crisis which rocked the entire economic world.
But if this practice continues unabated, a time will come when no power on earth will be able to save us. So every Indian should jointly raise their voice to prevent any further destabilizing efforts by such persons who are committed to destroy our economic stability, whatever it is.
Fiscal deficits can not be , better to say should not be covered through transfer earnings. There are various other ways to cover fiscal deficits. Disciplined government spending is one of the most effective measures. Corruption should be dealt with determination and honesty. The recent reforms suggested in direct tax structure is no reform at all. Black money should be unearthed. I have made a calculation on the basis of price index of 1950 and 2010. As per 1950 price index and also taking into consideration the changes in the consumption pattern of the people I have come to the conclusion that a person earning an annual income upto 1.5 million INR should not be asked to pay income tax. However I am not proposing to make India a tax heaven. Such other measures will definitely wipe out fiscal deficits and there will be no need for adopting measures like disinvestment under pressure from any quarter , inside or outside.