India's fiscal deficit has to go up.
That is,if the huge lumpen increases in central government employee emoluments recommended by the recent 7th pay commission report will be accepted or even enhanced. It will have to be as Indian trade unions are typically good at restrictive practices and bargaining by resisting the recent 7th pay commission report although it recommends huge increments of nearly 20 % to central employees. The civil servants - managerial and lower rung wage earners- will unite and will utilize the need for aggregate demand to stimulate the economy as an argument.
If centre gives, can states be far behind?. If centre gives, can banks be far behind?. These sectors are already reeling under stress of overdrawal and non performing assets.
The Pay commission should have been performance oriented pay. Instead, it looks like there is an increment to the white collared who have contributed to the country being ranked 130 among 189 countries in rank of ease of doing business. !
That is,if the huge lumpen increases in central government employee emoluments recommended by the recent 7th pay commission report will be accepted or even enhanced. It will have to be as Indian trade unions are typically good at restrictive practices and bargaining by resisting the recent 7th pay commission report although it recommends huge increments of nearly 20 % to central employees. The civil servants - managerial and lower rung wage earners- will unite and will utilize the need for aggregate demand to stimulate the economy as an argument.
If centre gives, can states be far behind?. If centre gives, can banks be far behind?. These sectors are already reeling under stress of overdrawal and non performing assets.
The Pay commission should have been performance oriented pay. Instead, it looks like there is an increment to the white collared who have contributed to the country being ranked 130 among 189 countries in rank of ease of doing business. !
Comparable countries are :
Mexico 38
Russia 51
China 84
Bangla Desh 117
(source. World Bank)
(source. World Bank)
While there is so much inefficiency and slack to to get rid off, if India wants to progress, India's bureaucracy, bankers and trade unions self obsessed educated elite are bogged down with who writes fat cheques and retirement benefits for themselves.
This self cheque writing is as 400 million of Indians- one-third of the world’s
poor–still live in poverty. This is even as average requirements of calories, proteins and fats based on norms of
the Indian Council of Medical Research energy requirement works out
to 2,155 kilocalorie person per day in rural areas and 2,090 kcal
per person per day in urban areas. The average monthly per capita consumption expenditure on food in these is Rs 554 in rural areas and Rs. 656 in urban areas.Who cares for the hungry marginal farmer ! For the poor ? (say $ 8.5 and $ 10 approximately)
217 million of the world’s malnourished children are in India.
This is when India’s un-organised or informal sector workers other than farmers constitute over 70% of the workforce. Nearly 70 % of informal sector workers do not have a written employment contract, or receive any social security benefits. Who cares for the poor migrant labourer? Indians are fatalists!
The trade unions will protest, the Government will relent; fiscal deficit will expand and the taxpayer will fund inefficiency!
($ 1= approximately Rs.66.4)
217 million of the world’s malnourished children are in India.
This is when India’s un-organised or informal sector workers other than farmers constitute over 70% of the workforce. Nearly 70 % of informal sector workers do not have a written employment contract, or receive any social security benefits. Who cares for the poor migrant labourer? Indians are fatalists!
The trade unions will protest, the Government will relent; fiscal deficit will expand and the taxpayer will fund inefficiency!
($ 1= approximately Rs.66.4)
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