Many years ago, a close friend’s father complained of unbearable pain in the lower back region, that needed medical treatment. His family doctor advised him to see a neurosurgeon and hinted at a possible surgery that could mitigate his pain. When I recommended him to talk to a neurosurgeon I knew, he readily agreed to consult him. This neurosurgeon went through his X-Ray and Scan reports and advised him against any surgery! “If you do undergo this operation your lower-back pain will go. But chances are that you may develop pain higher up your spine after the surgery. You also face risks associated with any surgery and here we are talking about neuro-surgery!”
So, for my friend’s dad, it was back to physiotherapy, painkillers and oodles of prayers!
Economic experts talk today like that neurosurgeon did several years ago. Spiralling inflation, the Rupee falling, lower growth rates, no investors coming to India, no jobs for youngsters - we have more pains than one can ever imagine! If you don’t like the hike in the petrol prices, who do you think pays for the import bill, if the petrol prices aren’t hiked? Taxpayers! And that includes Income Tax payers and those that (fortunately or unfortunately) don’t have to pay Income Tax. Because those that who don’t have to pay Income Tax have to pay all the Indirect Taxes – Excise Duty, VAT/Sales Tax, Entertainment Tax, Octroi, Customs Duties on all goods that are purchased by us folks.
Some years ago, when a fellow-blogger and old friend invited me for a long drive to meet up some interesting folks, he broached the topic about why the Government controls Petrol prices? “Why subsidize the rich – just allow market forces to determine the price of petrol and if they can afford it they will drive their gas guzzlers and if they don’t, junk ‘em! Do you know the more we drive around and consume petrol the more benefits we get from the heavily subsidized petrol prices?”
The Government apparently was planning this - to decontrol Petrol prices – which they seemingly did some years later. Seemingly, because the Oil Marketing companies cannot just raise the prices – the telephone caller at the other end (read: Petroleum Minister) ought to give consent. But what options does the Government have? If the prices are not increased, the OMCs will take a hit. If the duties are reduced the fiscal deficit of the Govt. will increase. If the fiscal deficit increases, the Rupee will fall further. Investors will avoid coming to India… Gosh! My friend’s dad was certainly in better shape!
“So where do you want your pain?” is the question the Government is asking us all.
The power of Democracy - you get to choose!
And whatever your answer is, the pain will only increase unless the Government curtails its wasteful spending and have a re-look at its subsidies and its beneficiaries. Unlike the Surgeon (who had not been the cause of the pain), the Government in this instance IS the cause of the economic pains – ill-conceived Yojanas, badly-monitored disbursements of government goodies, inaction against misuse of MNREGA funds and wide-scale looting activities, employing an army of inefficient government workers AND several such black holes in our government schemes. These ARE the cause of the pain.
And since people have already lost hopes that the Government will indeed act - or act in our interest if it at all acts, we find ourselves sending SMS jokes about petrol price hikes - maybe to put back the smile on our long faces. And the UPA-II government thinks we are happy about them completing 3 years of its term!
Blogger's Post-Script: Some of us are also happy and smiling because we have bought a diesel car and not a petrol one! Take that! So why crib about Government policies - just learn to use it to your advantage. And keep smiling!
So, for my friend’s dad, it was back to physiotherapy, painkillers and oodles of prayers!
Economic experts talk today like that neurosurgeon did several years ago. Spiralling inflation, the Rupee falling, lower growth rates, no investors coming to India, no jobs for youngsters - we have more pains than one can ever imagine! If you don’t like the hike in the petrol prices, who do you think pays for the import bill, if the petrol prices aren’t hiked? Taxpayers! And that includes Income Tax payers and those that (fortunately or unfortunately) don’t have to pay Income Tax. Because those that who don’t have to pay Income Tax have to pay all the Indirect Taxes – Excise Duty, VAT/Sales Tax, Entertainment Tax, Octroi, Customs Duties on all goods that are purchased by us folks.
Some years ago, when a fellow-blogger and old friend invited me for a long drive to meet up some interesting folks, he broached the topic about why the Government controls Petrol prices? “Why subsidize the rich – just allow market forces to determine the price of petrol and if they can afford it they will drive their gas guzzlers and if they don’t, junk ‘em! Do you know the more we drive around and consume petrol the more benefits we get from the heavily subsidized petrol prices?”
The Government apparently was planning this - to decontrol Petrol prices – which they seemingly did some years later. Seemingly, because the Oil Marketing companies cannot just raise the prices – the telephone caller at the other end (read: Petroleum Minister) ought to give consent. But what options does the Government have? If the prices are not increased, the OMCs will take a hit. If the duties are reduced the fiscal deficit of the Govt. will increase. If the fiscal deficit increases, the Rupee will fall further. Investors will avoid coming to India… Gosh! My friend’s dad was certainly in better shape!
“So where do you want your pain?” is the question the Government is asking us all.
The power of Democracy - you get to choose!
And whatever your answer is, the pain will only increase unless the Government curtails its wasteful spending and have a re-look at its subsidies and its beneficiaries. Unlike the Surgeon (who had not been the cause of the pain), the Government in this instance IS the cause of the economic pains – ill-conceived Yojanas, badly-monitored disbursements of government goodies, inaction against misuse of MNREGA funds and wide-scale looting activities, employing an army of inefficient government workers AND several such black holes in our government schemes. These ARE the cause of the pain.
And since people have already lost hopes that the Government will indeed act - or act in our interest if it at all acts, we find ourselves sending SMS jokes about petrol price hikes - maybe to put back the smile on our long faces. And the UPA-II government thinks we are happy about them completing 3 years of its term!
Blogger's Post-Script: Some of us are also happy and smiling because we have bought a diesel car and not a petrol one! Take that! So why crib about Government policies - just learn to use it to your advantage. And keep smiling!