Friday, February 26, 2010

Care for Common men

Price Rise:::::::

With the rise of petrol and diesel prices there will be rise in bus fare, freight fare by trucks and indirectly prices of all commodities will rise due to rise in transportation cost. It is also true that when petrol or diesel prices go down there is no fall in prices. When ATS fuel prices rise airlines raises airfare but do not reduce the same when ATS cost comes down. Prices can be controlled only by conducting raids on traders, manufacturers and commodity brokers who are artificially raising prices.

There is no shortage of production and it is told by government many times and it is also known that government is proud of GDP growth in the country. Regulation of prices of all goods and services need to be done at all level but in the name of reformation administration is ignoring the same and has given full freedom to businessmen to earn maximum profit. http://in.linkedin.com/in/danendra

Subsidy:::::::::

Subsidies of all types are looted by fabricating relevant documents. It may be NREGA money or Industrial subsidy or fuel subsidy or fertilizer subsidy or export subsidy or subsidy under various loan schemes sponsored by government of India. There is large scale loot going on in one name or the other. When media traps one scheme they change the name and old wine in new bottle continues. Reign of corruption will never end until we adopt to some hard punitive action... http://in.linkedin.com/in/danendra

Income Tax relief:::::::::::::::::::

There is nothing substantial in budget other than a little bit compensatory relief ( price rise is almost 100% during last one year and when prices rises there is salary erosion at all levels. Even businessmen whose income is less than five lacs faced the pain of price rise)to salaried class people or person having income upto 8 lacs.

Large part of population constituting 80% of Indians who are having less than one lac as annual income will not get any relief but they will be forced to share burden likely to rise due to rise in fuel prices. Government which always talks of common men has left the common men on the mercy of traders and corrupt officers .http://in.linkedin.com/in/danendra

Housing Sector::::::::::::

1% interest concession has been allowed to those who avail loan upto Rs.10.00 lacs but service tax has been imposed at 10% on builders who take advance for booking a flat.. former will give a little bit relief but there will be at least ten times of this relief as rise in cost of flat.

Common men:;;;;;;;;;;;;;

Private companies have been allowed to set up local private banks in all towns and villages. Now these banks will exploit rural people as money lenders used to exploit them before nationalization of banks. On the one hand government is talking of consolidation of banks and on the other they do not hesitate in giving more and more licenses for private banks.

Even existing NBFC are beyond the control of the government and every year some NBFC close their offices and found to be absconding when poor and innocent depositors ask for payment as promised by them. Now government is trying to add fuel to fire by giving them permission to establish local banks.

Danendra Jain
Ganaraj Choumuhani Agartala 799001
27th Feb 2010

Saturday, February 20, 2010

Stimulus is cause of Inflation

I am not an economist, nor an expert in finance management of the government. I however try to project my feelings. Liquidity crisis or Sub Prime Crisis occurred in USA and other European countries. How did it affect Indian economy in the year 2008 which forced Indian Government to sanction stimulus package in line with what Obama did in USA.I am unable to understand it. Can anyone help me?

I came to know that since FII were withdrawing money from stock market, India’s economy has been shaken. It means our great miracle economy of the world depends on FII fund and survives due to FII fund.

Some intelligent persons tell that due to financial problems in USA, they had blocked payment of exports made by Indian businessmen. This resulted in liquidity crisis in many countries. Some says that export of goods has suffered a lot.

Is it true that export proceeds of goods exported to USA or any other countries were stopped by importing countries?

If not how did it result in liquidity crisis? When foreign countries stop import, real problem may arise in selling exportable goods in domestic market.

If export proceeds were really stopped by importing nations like USA, government could have been justified in sanctioning financial package for such affected exporters or manufacturers, but not justified in allowing benefit to all.

CRR and SLR were reduced to release liquidity for banks. Is it justified to provide such liquidity (interest free fund) to all banks whether they were associated with affected exporters or manufacturers or not?

Even if it is considered that release of liquidity or relaxation in tax in general without discriminating the real victim of said sub prime crisis of USA was justified, the matter of vital concern is whether government has ensured that affected units have actually benefited in any way from the said stimulus package.

Has government ensured that domestic demand of exportable goods has been created to compensate loss caused due to stoppage of exports?

If domestic demand has not increased, how the said affected units have utilized the stimulus package and how they could maintain the same turnover as they used to exhibit through export proceeds?

Has government tried to ascertain the proportion of stimulus package released for banks used for growth of manufacturing or export sector and what proportion invested in MF or parked in RBI at Repo rate to earn interest or dividend?

Is it not true that excess of fund provided to business units, traders, manufacturers and exporters resulted in huge hoarding, black-marketing and abnormal profit making?

If it is true, government should admit that the current price rise is nothing but the making of the government.

Income of poor people did not rise but prices showed relentlessly rise and this resulted in considerable erosion in purchasing capacity of poor and middleclass families. As a result demand of the consumer goods at grass root level has sharply come down.

Had the government avoided stimulus package, the exportable goods could have come in the domestic price at reasonable price and demand could have gone up to a considerable height and the end result could have given a boost to manufacturers and traders.

Further the government could have used the fund released through stimulus package in carrying out additional public investment to create additional demand and additional employment opportunities.

If there is a little bit relevance in points raised by me I think government should not hesitate in withdrawing stimulus package in gradual and comfortable manner. This will help in combating inflation and ease the burden of poor to a good extent.

If liquidity from banks is withdrawn, banks will not invest in MF, will not park surplus fund in RBI to earn interest at repo rate and at least not opt for sub-PLR lending to corporate or to real estate sector which benefits none other than upper class of the society.

Banks will be forced to mobilize deposit at some higher rate which will benefit poor and middle class families and pensioners to a greater extent. If lending rate to corporate goes a little bit higher, if rate for housing loan or loan for car goes higher I am very much confident and the experience of pre-reformation era reaffirms my belief that sale of these luxurious goods will not come down and neither nay corporate sector will stop their activities on account of little rise in borrowing rates.

It is ironical that the government which is talking of social inclusion to attract Indian voters is also talking of merger of banks or infusion of fresh capital into PSU banks to enable them to compete with global banks which caused crisis in USA and other countries. When they plead consolidation of banks in raising exposure limit of the banks they perhaps forget the interest of common men or the issue of social inclusion.

Can I conclude now that the fear of global recession in India was artificial and virtual and maintenance of growth rate achieved by dint of the said stimulus package is also imaginary, unreal and willful exaggerated to hide the faulty policy and faulty execution of government’s good policies?



Danendra Jain
Ganaraj Choumuhani
Agartala 799001
18th Feb 2009

Thursday, February 18, 2010

Price rise and Stimulus Package

I am not an economist, nor an expert in finance management of the government. I however try to project my feelings. Liquidity crisis or Sub Prime Crisis occurred in USA and other European countries. How did it affect Indian economy in the year 2008 which forced Indian Government to sanction stimulus package in line with what Obama did in USA.

Is it true that export proceeds of goods exported to USA or any other countries were stopped by importing countries?

If not how did it result in liquidity crisis? When foreign countries stops import , real problem may arise in selling exportable goods in domestic market.

If export proceeds were really stopped by importing nations like USA, government could have been justified in sanctioning financial package for such affected exporters or manufacturers, but not justified in allowing benefit to all.

CRR and SLR were reduced to release liquidity for banks. Is it justified to provide such liquidity (interest free fund) to all banks whether they were associated with affected exporters or manufacturers or not?

Even if it is considered that release of liquidity or relaxation in tax in general without discriminating the real victim of said sub prime crisis of USA was justified, the matter of vital concern is whether government has ensured that affected units have actually benefited in any way from the said stimulus package.

Has government ensured that domestic demand of exportable goods has been created to compensate loss caused due to stoppage of exports?

If domestic demand has not increased, how the said affects units have utilized the stimulus package and how they could maintain the same turnover as they used to exhibit through export proceeds?

Has government tried to ascertain the proportion of stimulus package released for banks used for growth of manufacturing or export sector and what proportion invested in MF or parked in RBI at Repo rate to earn interest or dividend?

Is it not true that excess of fund provided to business units, traders, manufacturers and exporters resulted in huge hoarding, black-marketing and abnormal profit making?

If it is true, government should admit that the current price rise is nothing but the making of the government.

Income of poor people did not rise but prices showed relentless rise and this resulted in considerable erosion in purchasing capacity of poor and middleclass families. As a result demand of the consumer goods at grass root level has sharply come down.

Had the government avoided stimulus package, the exportable goods could have come in the domestic price at reasonable price and demand could have gone up to a considerable height and the end result could have given a boost to manufacturers and traders.

Further the government could have used the fund released through stimulus package in carrying out additional public investment to create additional demand and additional employment opportunities.

If there is a little bit relevance in points raised by me I think government should not hesitate in withdrawing stimulus package in gradual and comfortable manner. This will help in combating inflation and ease the burden of poor to a good extent.

If liquidity from banks is withdrawn, banks will not invest in MF, will not park surplus fund in RBI to earn interest at repo rate and at least not opt for sub-PLR lending to corporate or to real estate sector which benefits none other than upper class of the society.

Banks will be forced to mobilize deposit at some higher rate which will benefit poor and middle class families and pensioners to a greater extent. If lending rate to corporate goes a little bit higher, if rate for housing loan or loan for car goes higher I am very much confident and the experience of pre-reformation era reaffirms my belief that sale of these luxurious goods will not come down and neither nay corporate sector will stop their activities on account of little rise in borrowing rates.

Can I conclude now that the fear of global recession in India was artificial and maintenance of growth rate achieved by dint of the said stimulus package is also imaginary, unreal and willful exaggerated to hide the faulty policy and faulty execution of government’s good policies?



Danendra Jain
Ganaraj Choumuhani
Agartala 799001
18th Feb 2009

Saturday, February 13, 2010

Sonia Gandhi

Arbitrary promotion and whimsical transfer is the root cause of rampant corruption and culture of flattery to superiors. Culture of flattery to bosses and tendency to become Yesman of Ministers, MPs and MLAs is the root cause of all maladies prevailing in the society. Every employee in our country knows the bitter truth that only those who are yesmen of bosses can get elevation in their career or get cream and comfortable posting.

Most of MLS, MP and Ministers have accumulated properties worth many crores of rupees. Department of vigilance or CBI or Anti corruption cell or Economic offenders cell are silent spectators.

So many IAS and IPS officers have been found indulged in corrupt practices only because they have got the blessings of their mentor Ministers.

So many bank officers and executives have properties worth crores of rupees, which is far more than their total earning in their entire tenure. It is possible only because there is practically none to look into corrupt practices prevailing in the bank at higher level.

When Head of any department or office is corrupt, or when any minister in the government is corrupt it will be foolish to imagine of healthy culture down the line.
It is very difficult to survive with dignity when the boss is corrupt and when boss likes flattery.
Only when boss loves real performance, employees feel delighted in working sincerely.

When real performers are awarded, there will be positive motivation. On the contrary if corrupt is promoted and given good posting, it is but natural that people will be tempted to toe the line of boss even if it is wrong and unethical and against the interest of the organization

As long as we are unable to provide a reasoning based transfer and merit based promotion and as long as the wrong doers are not punished by either head of the department or by the courts we cannot imagine of stopping corrupt practices prevailing in the system and spreading like cancer in the society.

Old proverb survival for the fittest no more holds good. Now a days survival is possible only for the person who is well versed in flattery to bosses, who can earn money through ill methods and share the same with his bosses.

The bitter truth is that there is no foolproof method of providing perfectly merit-based promotion or seniority based promotion in any office. None of the promotion processes can ensure justice to all, justice to the organization and discomfort to none as long as the person responsible for carrying out the promotion process is dishonest and corrupt. When protectors become destructors, damage to society cannot be stopped,

One easy way to stop whimsical transfer and arbitrary promotion is to maintain transparency and abolish the requirement of passing through Interview for existing employees for getting promotion. Interview is such a test where Interviewers can easily spoil the candidates career.

During interview, key role is played by elements like bribe, gift, sources, godfathers, and flattery possessed by employee whose performance is assessed during interview. When Interviewer desires to promote an employee he raises easy questions or do not raise any question and give higher marks and on the contrary he may raises toughest and irrelevant questions before the candidate to reject him in the promotion process.

The interviewer as per his whims and fancies gives marks for interview and unfortunately there is no method to penalize such malicious interviewers or the interview team made of birds of the same feather. There is hardly any place for merit in the mind of Interview panel and this why whimsical promotions take place and a reign of injustice and that of corruption spreads like epidemic and is followed by inefficiency, frustration, depression and what not.

Last but not the least; our courts cannot deliver justice in decades. This eliminates the fear from the minds of interviewer and the aggrieved employee is constrained to bear with the rejection in promotion process. Justice delayed is justice denied. And when there is no hope of justice even from court, aggrieved person in promotion process is left with no alternative other than digesting the poison of injustice.

It is an open secret in our society that victim is afraid of lodging complain in police department against any type of criminal. Not to speak of promotions, management can torture an employee by using his power of transfer and posting an employee in the name of exigencies as per his sweet will.

I therefore request you to take immediate steps to ensure merit based transparent promotion and reasoning based transfers and posting in all offices. Only one remedy to cure disease of corruption is to award honest performers and sideline corrupt performers. Only the bearer knows where the shoe pinches is a right proverb in this regard.

IN BANKING INDUSTRY THERE ARE HUNDREDS OF OFFICERS WHO ARE FACING TRANSFER EVEN TWICE OR THRICE A YEAR WHEREAS OFFICERS SITTING IN METROS ARE SITTING IN ONE TOWN SINCE JOINING SAY FOR TWO OR THREE DECADES.
EVEN POLICY OF RURAL POSTING IS MISUSED BY THE MANAGEMENT TO ISOLATE NON FLATTERERS .
EVEN POLICY OF POSTING OUTSIDE STATE AFTER PROMOTION IS MISUSED TO FAVOUR THE PEOPLE OF WEST BENGAL OR THAT OF MAHARASHTRA.
POLICY OF NORTH EAST POSTING IS USED TO ISOLATE NON FLATTERERS. POLICY OF TRANSFER FOR NON PERFORMERS IS ALSO USED BY THE EXECUTIVE TO KEEP NON FLATTERES AWAY.
NOWHERE AND NONE OF POLICIES ARE USED TO PROMOTE THE CULTURE OF PERFORMANCE.
AS SUCH IT IS COMPARATIVELY BENEFICIAL TO ELIMINATE THE ELEMENTS OF DISCRETION OR DISCRIMINATION IN THE INTERNAL PROMOTION PROCESS AND TRANSFER POLICY.THE MORE TRANSPARENT WILL BE THE POLICIES , THE LESS WILL BE QUANTUM OF FLATTERY IN THE MIND OF WORKING OFFICERS.
EXECUTIVES WHO ARE INDULGED IN CORRUPT PRACTICES WHILE RELEASING ORDER OF TRANSFER OF PUTTING THEIR SIGNATURE ON PROMOTION ORDERS MUST BE SUITABLY PUNISHED SO THAT RECURRENCE OF SUCH MALPRACTICE DO NOT TAKE PLACE.
JUSTICE DELAYED IS JUSTICE DENIED. YOU CANNOT IGNORE THE RESENTMENT, FRUSTRATION AND DEPRESSION PREVAILING IN THE FIELD LEVEL FOR LONG WITHOUT INVITING STRIKE AND LARGE SCALE REVOLT AND RAMPAGE

Danendra Jain
Agartala