The unanimous decision of the Council to stick to fiscal discipline is welcome because any move to raise expenditure beyond the line marked by limits to rise in real income through productivity gains will result in inflation, which will harm the people below the poverty line more severely than those above the line. It is heartening to note that there is no complacency concerning the situation arising from decline in real GDP from 9.1 per cent in the fourth quarter of the financial year 2015-16 to as low as 5.7 per cent in the first quarter of the current financial year.
It appears that fiscal stimulus through debt-creating capital will lead to serious erosion in the purchasing of power of money, which means more misery for those in the lower rungs of the economic ladder. The need of the hour is to identify items of expenditure which can be pruned without any adverse impact on real growth. A serious search for schemes involving costs which far outweigh gains should begin without delay. Even a sprinter, starts slowly and gains momentum to finish it in record time. So this slowdown must be viewed as a stepping stone for an accelerated growth in Indian economy.
It’s a slowdown owing to GST and demonetisation, both important in their own right. There were glitches, yes! But this government does not worry about votes, but for the national good and hope the people think about a good future for the country rather than immediate goals say 6 months or 1 yr. We will have to wait and watch till 2019 to form a final opinion. This government is doing well and we are all confident and hopeful, because the alternative is too bleak for this country.
Honest, humble and hardworking are not quality of our countrymen. When there is no honesty and hardworking, how is it possible to improve the productivity? If there is no productivity then there would be no economic development. Nothing simpler than this. PM Modi has been working hard to change the way of our thinking and trying to create a turning point for India. On the other hand, majority of our people have been so deeply connected with easy wealth grabbing without minding honesty and hardworking. Therefore, the real reason is our people have not changed the culture and not evincing interest in ‘honesty, humbleness and hardworking’. Until the time these happen in our country, we have no chance to see our economy grow.
(The views expressed by the author in the article are his/her own.)