Editorial

Economy a jigsaw puzzle

By Nagaland Post | Publish Date: 12/14/2019 11:21:47 AM IST

 The economy has become a jigsaw puzzle. The government is trying to understand for the last six years. Each understanding is leading it to dangerous lows. The leaders of the government are happy. They say the NDA government must not be blamed for the faultiness. The NDA, according to them, had inherited an economy devastated by the Congress-led UPA and NDA is on a constant correction mode. That’s good. The people are merely asking how long the previous UPA and the Congress could be blamed for all the ills. True, the erosion of banks had started with the liberalization of the former finance minister Manmohan Singh in 1992. The Harshad Mehta stock scam is too difficult to be forgotten. That began a systematic erosion of bank funds and a number of institutions like UTI, LIC, GIC, and several banks lost huge sums. The UTI collapsed for losing its total kitty of Rs 64,000 crore. The correction started with Atal Behari Vajpayee. Institutions like SEBI as regulator was set up. New norms for banks were set. The banks had till 2009 NPA of about Rs 44,000 crore. After that as incentivisation of industries began by finance minister P Chidambaram, it soared to over Rs 7 lakh crore in 2014. It was not easy for the NDA government to correct it. But is the NDA not at fault? It continued with the same policies. The difference was that the set of beneficiaries, the companies, changed. The NPAs went on rising. And to cover up the situation, the loss making banks were merged. The reality is the banks continue to be in critical situation. In short, the savings of the people has been swindled. The NDA government also could not check the road toll scam. The banks and financial institutions have lost over Rs 1 lakh crore by conservative estimates. Various policies of the NDA right from the 2016 demonetisation to MUDRA loans for smaller entrepreneurs have only added to the losses. Most schemes of NDA are half baked. At a time when taxes should have come down, it raised income tax to 42 percent, tightened screws on taxpayers, could not check the fall of the rupee despite fall in imports and harassed functioning industries to the extent they got busied in saving their skin. Tax terror has increased despite the digitization the harassment has not come down. One after the other industries is going into difficulties. Easiest way has been to reduce the number of employees. So joblessness is a gift of this government. Along with this the rural and urban purchasing power came down with demonetization and despite increased circulation of cash nothing has normalized. Further the finance minister Nirmala Sitharaman’s roll back of most of her budget proposals, the government seems to have lost track of the economy. The fault lines are deep. Since the government and its functionaries are not in a dialogue mode, it is losing grip over the track. It is also losing on the price front. Since day one by keeping petroleum prices high, it virtually broke the backbone of the economy as industry was saddled with high running and transportation costs. Inflation is a natural corollary. During the past about six years alone the prices have risen by over 25 percent. Strangely enough, despite this NDA  tom-toms that it has kept the inflation at a low. No government in the recent past has been such disarray on economy as the NDA. It does not want a national dialogue ton this either. The result is not only the government is sinking it is taking nation’s economy downhill. 

 

Launched on December 3,1990. Nagaland Post is the first and highest circulated newspaper of Nagaland state. Nagaland Post is also the first newspaper in Nagaland to be published in multi-colour.

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