States are demanding fantastic amounts from the Centre to tide over the revenue loss caused by the lockdown. Suppose they lose two months’ revenue (March and April). That would be one-twelfth, 8.3% for each year. Can’t they bear this downtick in revenue?
Actually they can’t. All-State governments are bankrupt. Each year they borrow to the limit set for them by the Central government. (Yes, India is solvent only because the states can’t borrow beyond a preset limit. Otherwise, the vote bank managers would borrow the entire House of Morgan, will buy whole blocks in New York, and run away as India would collapse. Centre has no such limit. But it has International Monetary Fund (IMF), World Bank, and other rating agencies which immediately raise a red flag when borrowings go out of hand. We were saved from the Italian Godmother only by the international rating agencies.)
The construction industry labour would have left for the villages by the first week of April for harvest in any case. Nobody could have stopped them.
Coming back to the economy. Relax, sit back and relish Ramayana and Mahabharata. They are still captivating, mesmerising. Entire agriculture is alive and kicking. No effect of lockdown. Farm implements and fertiliser suppliers are doing business as usual. Goods traffic of Indian Railways is running. Passenger services cause only the loss, so IR is actually saving money. Power industry and mines are open. So are most heavy industry plants. Software engineers are of course can and are working from home. So Are many other professionals.
As individuals, I hope we have not become Americans in India. I mean, I hope we have savings to tide over the three months if incomes go to zero, which in many cases won’t be the case. As for the construction industry, labour would have left for the villages by the first week of April for harvest in any case. Nobody could have stopped them.
States see this as the opportunity to extort money from the Centre so that loot actually increases post-Corona. That is, like every natural calamity, they want to make sure that Corona is also just another loot festival.
They would not have been bankrupt, of course, if only they had allowed citizens to do business and trade and production. But then, who would bribe them? How would the junior study in America then?
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I have a question for PGurus and other followers of Dr. Swamy’s. You will agree with me that the Supreme Court of India considers itself the highest legislative body (latest example is to “order” free Covid tests in pvt labs). So why don’t you file a PIL asking for Dr Swamy’s proposals (the ones that you consider are crucial to reviving the Indian economy) to be implemented by the Govt.? Who knows, you may be lucky and the court might rule in your favor. It may not be such a bad thing for NaMo as well; he can always place the blame on the courts.
Author is fully biased against state’s. Modi govt allowed most of his Gujrati chor friends to loot india and all financial institutions. Modi refuses to take action against financial terrorists. Modi didn’t give flood relief to Karnataka which was worst .If modi can bailout his Gujrati looters and corporate chors why not states. No financial institutions in india is trusted .
Firstly most of the State Governments distributing freebies and doles and still implements unproductive schemes leading to total nakedness. To cover up their nakedness huge income from increasing liquor sales make their visionary budgets peppered with tax on gold and fuels showcasing up a neat lady full of make ups. Toddy taverns disappeared all over the country!! All drunkards graduated to consuming phoren/export quality maal liquor……All budgets will have this or that project full of percentage kickbacks frills…..
Drought, cyclones give chances to irrigate chelas and chums pockets while health issues like COVID19 offers to perk up personal budget and a status of Rs.1000 crores worth Neta with his or her own TV channel!!
GOI has many resources to meet emergency expenses. Nationwide donations do come up.
Its better to have spends at 12% GDP on health care and education for the next few years.
Majboot sarkar PM Modi spent first term just like that and the second may be wasted again……
There is no more appropriate time than this to initiate the 6 steps suggested by Dr. Subramanian Swamy to bring back the black money stashed away in tax havens.
Economy will gallop and also all these other problems also get solved.
Jai Hind
Great Analysis. Everyone except Modi is to be blamed for all past and future problems. For every goof up of the government or the ruling party such as demonetisation, faulty GST implementation, 4 Budgets between Feb 2019 to Feb 2020, Jamia and JNU violence, CAA Rooftop speeches with threatening hand movements by the Home Minister, Kapil Mishra-Paresh Verma-Dilip Ghosh-Amit Shah hate speeches, Money bag propelled Operation Kamal commissioned after drying up sources of Reverse Operation Kamal of opposition parties, Delhi riots the first big riot after 2012 Gujarat riot in 21st Century Modern India in the capital of the nation, unexpected Migrant Labor Exodus due to unplanned lock-down, Thaali – Diya – Mombati and 9 PM 9 Minutes gigs there is a beautiful explanation by right wing arm chair specialist gurus who will enjoy their spot under the sun as long as people of this country only have the devil and the deep sea to choose from as government and leaders.
Migrant laborers have more than enough siblings back home to do the harvest in their own farms. As regards others who don’t have their own farms, the per day wage they earn in the cities and towns is much more than what they would get as unskilled farm laborers. The explanation that migrant laborers would have anyway left cities and towns for harvest season is do give a huge benefit of doubt to the Modi government that was caught on the wrong foot for umpteenth time. Come up with a conspiracy theory and blame Kejriwal for the migrant labor exodus. Don’t understand how people write such stories without conscience.
Brilliant Satire unfortunately true.. personality cult is bane of Bharat. Capable and competent systems should be built to address important issues to save Rashtra from selfish, corrupt and incompetent political, business and bureaucratic elite.
Hello Mr. Sree Iyer. I thank you very much for the channel and the content and your effort to enlighten the general public of India.
I urge Dr. Subramanian Swamy to look at a legal solution to this “distribution of money and gifts to the people”. The people who want this freebies must be made to work and then paid the money.
I am a tax payer though not in a very big way, both directly and indirectly (GST) but cannot afford a servant maid. If I am not required to pay the taxes I may be able to afford servant maids. This distribution is ROBIN HOOD method. Robbing some and feeding some.
Jai Hind
When ever Drought or heavy rains occurs etc, State Govt send request fro relief amount which is usually abnormal figure. Never seen, Central Govt taking such figure seriously as it knows inflated figures. funny part of Indian Democracy. many time State Govt borrow money from Rich Industrialists to pay salary of Govt Employees .+++