Subsidies will damage total economy in India.
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Subsidies will damage total economy in India.
Subsidies are only for temporary solutions. They will damage entire economy in India. People think that they are benefited but on the whole they are troubled in many ways.
Subsidies will damage total economy in India.
The total subsidy in the year 2014 Union Budget is Rs 2.51 lakh crores. It is roughly 1/3rd of the all states subsidies in India. Hence you can understand the subsidy giant which effects the country economy and disturbing the people in various aspects.
To attract the people Subsidies are given and will be supported only by the weak political parties and weak governments. Subsidies are distributed among individuals, income-levels, Social groups for different aspects which are most dangerous for the country. The Subsidies burden on government’s budget will be unbearable, and effects on decline of real public investments and schemes. Its effects will be seen only after 1 to 2 decades and the result will be total collapse in National economy.
Subsidies are only for temporary solutions but will damage entire economy in India. Subsidies will be beneficial at some targets but it lead to perverse or unintended economic effects due to which the central governments and all state Governments will collapse at any point of time. The people demands to continue if once given or offered at the time of elections or after elections. The selfish political parties grab their votes on the basis of these subsidies. After framing the governments, they can’t withstand and the illegal activities will be increased and the Governments will collapse and the same repeats
Subsidies will damage total economy in India.
Declarations by the political parties regarding the subsidies will be very easy and will be very attractive to the people to grab the vote bank. But it will be extremely difficult to the Governments to reduce or remove subsidies. On the contrary, it is natural for subsidies to expand and bring the government budget under stress. The revenue deficit in states has to be funded from the central government and the revenue deficit in central government has to be funded from foreign investments and market borrowing – which reduces investment in private sector to support consumption by the people. Implementing subsidies will have exclusion errors and inclusion errors. In the former case, some of those who deserve to receive a subsidy are excluded, and in the latter case, some of those who do not deserve to receive subsidy get included in the subsidy programs. This creates quarrels among the people and the ruling governments which ultimately results the governments and leaders to beg from other countries. This leads to losing the control on the country and the final result is destruction of the Nation. Is it advisable to us ? Implementing any kind of subsidies is not at all advisable in proper planning of the governments. Political leaders at the time of elections Promises to continue the present subsidies and also promises to implement further subsidies based on social, economical or on any according to their groupisms to benefit them and ultimately to capture the power which is most dangerous to us.
Subsidies will damage total economy in India.
Due to the burden of these subsidies and due to the raising of the cumulative adverse effects, no government satisfies the people. At present subsidies are 1.Subsidy to producers, 2.Subsidy to consumers, 3.Subsidy to producers of inputs, 4.Providing Incentives instead of Subsidizing, 5.Production/sales through public enterprises, 6.Cross subsidization.., Subsides includes the fee reimbursement Scheme, Rice for One Rupee for Kilogram, waiver of Loans, Free Gas connections, free electricity, free cloths and many like that which will be total burden to the governments and due to these kind of subsidies or frees there will be bifurcation of the society and people which gives continuous disturbances in the society. Ultimately rowdism, gundaism, terrorism, strikes, bundhs, rastha rokhos, processions, Non cooperation of employees, starts in the society for demanding the continuation of various both state and central governments subsidy schemes and for implementation of new schemes which damages the society, ruins the country economy, name and respect in the world.
If the subsidies are banned for just 5 years, that amount will be utilized for the real development. The market rates of each and every product will come down and there will not be any kind of ration in the country. The real governments are the governments which rule the country without any kind of ration in the country. Utilizing the ration is nothing but begging only. We are made beggars by the politicians.