"We expect that the budget will boost development along with providing social justice and implementation of Employment Guarentee Act", CPI General Secretary A B Bardhan said.
"CPI would oppose any price hike that would affect the common people, and to give a signal to the government, we are holding an All India Price Hike Day tomorrow",
Just as you can’t run your home for ever through deficit funding, you can’t run a government for ever by deficit financing. The burden of debt is most borne by those that the CPI claims to help. They really need to keep rhetoric aside from reality.
succinctly put.
The rhetoric is really on the part of the Right and Center Right (the BJP and the Congress with most of the other non- Left parties somewhere in between). The UPA, after winning the elections mainly on the upsurge against the economic onslaught of economic liberalization, is reneging on the hopes it had brought. It continues with its 1991 policies that led to its own ouster in 1996. If the Left still supports the UPA, it is more because of the UPA’s relatively secular nature.
There are other ways of making up the deficit, tax the bourgeoise, tax the rich landlords. But these require a strong social and political mobilization against very powerful interests that even the Left seems to be in a mood to do. In that sense, perhaps it is rhetorical but far less than that of the bourgeois parties.
Spreading the cost of the defecit among a wider base, is easier when the vast masses continue to impoverish and struggle for basic livlihood (see Harsh Mander’s piece yesterday in HT, for example). Its the same story all over again- hit at those who cannot hit back.
tnx kuffir
tns. bhupinder. I don’t disagree with you in terms of government inefficiency in implementing its promises. However, i am not sure that it can turn back the liberalisation clock. I only wish that it would upfront the development clock. In the last 60 years if all the money allocated to development reached the intended, we wouldn’t be having this conversation. What this governemnt, indeed any government, needs to do is to ensure efficieincy in delivery mechanisms.
On taxation – the bourgeoise is already being taxed 33 odd percent. the aam janta – even if they are not in the tax bracket – are already paying tax through a plethora of indirect taxes. Theoretically yes – increases taxes is one way of increasing revenues. But, with more and more people in the employment bracked (300 odd million) fitting into ‘service class’ and tax deducted at source increaisnt, the govenrment needs to look at other sources of taxation maybe!
However, before they start taxing more, or increasing the deficit – i would personally like to see a more efficient system of delivery. Most of the funds that are allocated for development or ‘social causes’ never reach the intended. I would like to see the CPI and the RSS – two similar bodies both in terms of adherance to obsolete dogma, and high and of course the people level of integrity of its supporters – act as watchdogs on government funds and see it delivered to where it is meant to be.
The main issue here is cost of fuel. with international prices being what they are – i really can’t see fuel prices not going up. i gnash my teeth and mentally scream everytime i pay Rs.41 per litre, but mentally i know that it is going to be higher. I will be very happy if government drops tax on this to make it more affordable all around.
Taxing farming is a great idea. However, it has been blocked for so long – and the rich farmers are creating such a ruckus even if you mention the words, that i find it difficult to believe that it will ever be implemented. The lobby is exceedingly strong and controls large swathes of political machinery – across parties – in the country. Just as the European countries or indeed the US cannot get rid of farm subsidies – we cannot seem to intorduce taxation on farming.
The left has great ideas. Ideas that will truly transform society. But, and this is a big but – there is no thought on who will pay for them. Their sociology is great, it is their economics that is wooly.
I would disagree on many of your points, but more importantly on these two, though I am not going to contest any further here- both call for longer treatments:
1. >see the CPI and the RSS – two similar bodies both in terms of adherance to obsolete dogma
2. >it can turn back the liberalisation clock
>Their sociology is great, it is their economics that is wooly.
and this one is really a sad comment, right or wrong, on a political formation that has based itself, above all, the works of a man who spent th e best years of his life writing a book on political economy- Das Capital and a movement that was once accused of overstressing the role of economics.
I don’t have an issue with Marxism per se. As a sociologist – he is incredible. As an economist – he was enlightening.
However, I have an issue with this soviet model of marxism that the CPI backs. I believe that it is a highly inefficient system and one prone to leakages.
Unfortunately the RSS and the Marxists in India have a lot in common. If you take away ‘religion’ and ‘secularism’ – their aims are very similar – so much so that it is scary. As is a higher than average proportion of ‘clean’ and extremely articulate leaders. They talk the same thing but crouch it in different terms.
I understand what u mean by long treatments – didnt’ expect the response to your earlier comment to take up so much space 🙂
This might strike as a glib response but
– tax is only a percentage of what you earn as a country.
– you can either increase the proportion of tax or earn more.
– you can earn more by two ways – creating more value and wasting less
– and Karl Marx died quiet some time back in 1883.
Government gets its funding mainly from taxes; which here in India is relatively less in comparison with other developed countries.
For the Govt. to take up public expendtiure, it is necessary to procure funds. If the tax revenues are not adequate, then they will resort to deficit financing.
Increasing the corporate and personal taxes is not favoured in a country like India.
Borrowing forms a very important part of the governments funds. It is important to distinguish between external and internal debt. And to pinpoint which is better is a highly debatable issue.
But, like you mentioned, it is not good for the people and the economy in the long run; prices hikes are necessary at times.