It is the time for taking disciplinary, regulatory measures for the nation as a whole by all the parties together. The measures may cover the following areas:
A). To protect the interest of farmers by insuring the crops also which covers the investments made by the farmers. At present only crop loans are covered under crop insurance.
B). To utilize the borrowings only for infrastructure and long term requirements only and to earn income since those has to be repaid with interest and not to use for regular administrative expenditure.
C). To protect the interest of the investors by assuring them with safety, liquidity and regularity of income on investments made.
D). Industries has to be protected from becoming sickness due to over borrowings, diversification of funds, over administrative overheads, mismanagement, etc.
E). To maximize the productivity of men, material, money, time and knowledge and to serve the purpose assigned.
I bring to your notice some more issues which may be considered:
1. PRICES: The following may be the reasons increase in prices of essential commodities.
- Stocks hoarding.
- Liberalized policy where there is no price control.
- Finances provided even for hoarding of stocks.
- Low prices when the products are in the hands of farmers, and high prices when the products reaches to the customers.
- High proportion of taxes component in customer prices where there is no ceiling.
- Shortages artificially created where no proper monitoring.
- Not properly stores to meet unforeseen requirements.
- Industrial products are becoming cheaper whereas the prices of food grains, eatables etc., are increasing.
2. INVESTMENTS: The investments are not safe and not encouraging with good incomes. It will be very difficult to meet the long term infrastructure requirements when foreign direct investments are withdrawing if internal investments are not mobilized and encouraged.
3. BORROWINGS: The borrowings went up from Rs.17.50 lakh crores in 2004 to Rs.34.50 lakh crores in 2009. All the borrowings should be utilized for earning income only in the form of investments for long-term infrastructure projects since those has to be repaid along with interest. Those borrowings should not be used for regular administrative expenditure. In fact there should sufficient savings to repay the borrowings which is not being done.
4. FISCAL DEFICIT: The fiscal deficit went up from 2.7% in 2004 to 6.8% in n2009. It means revenue expenditure is more than revenue incomes earned during the years.
5. INFLATION: The inflationary effect is more dangerous than any other effect. The effect will have multiple effects on the savings capacity of the nation, individuals, corporate etc. again there should increase in administrative expenses of the govt. and corporate which in turn will have effect for further increase of inflation.
6. DIS-INVESTMENTS: The dis-investments proceeds should be utilized for long term requirements of infrastructure or repayment of loans but should not use for revenue expenditure.
7. TAXES: The rates of total indirect taxes should not be more than 10% of the customer price. With regarding direct taxes, minimum tax liability should be at least 5% of total income (including exempted and deducted). Also there should tax payer welfare in the form payment of some amount of tax paid has to be repaid as annuity to the taxpayer at his old age as pension.
8. CREATION OF NEW WEALTH: More emphasis should be given for creation of new asset with the help of manufacturing or agriculture with or value addition. Enhancement of values will not create new assets and will not satisfy the increased demands.
9. PRODUCTIVITY: The productivity of men, money, material, time and knowledge should be utilized to the fullest extent to obtain highest productivity. There should prescribed standards of quality, quantity, price, tax component, marketing expenses and customer prices of the products to be achieved instead of allowing the organizations to grow as it wishes.
10. CSR: Commercial social responsibility has to be given highest importance since the gains or losses of the organizations are not of there own but also there will be effect on the following areas:
- Resources utilized.
- Creditors, financial institutions,
- Customers, Dealers, Distributors, Stockiest,
- Employees as loss of employment, bi-products dealers, manufacturers.
- Raw material suppliers,
- Taxes to the Govt.,
- Image of the Industry as a whole,
- Goodwill of the group to which the organization belongs,
- Investors confidence,
- Net Wealth of the company,
- Development as a whole.
11. REGULATORY AUTHORITY: The un-biased role of Regulatory authorities is much more important for smooth functioning and for achieving highest productivity of the commercial organizations. The authorities should protect the interests of investors, financial institutions, creditors, customers, employees and all sections.
12. FINANCIAL INSTITUTIONS: The financial institutions should lend on income earning capacity of the asset financed but not on the security offered. Also there should be limit on maximum borrowing capacity of the borrower. Centralized lending norms should be encouraged to have proper monitor on amounts lent and proper utilization of amounts borrowed.
13. MESSAGE, MOTIVATION: All types of messages in the form of movies, motivation should be properly guided and guarded for proper positive approach and usage only. Wrong should not be allowed to be shown, delivered etc.
14. EDUCATION & EMPLOYMENT: The education and training should be employment oriented, entrepreneurship oriented. There should be relationship between education and employment right from the beginning of graduation levels.
15). FORWARD TRADING: Every trading has to be supported by supply assurance but not to cover price speculation in the form of FORWARD TRADING. There is possibility of earning with minor investments but also there is a possibility of losing the entire investment or more also. Any trading done for price speculation may lead to disastrous economy of many investors.
16). RESOURCES: As said earlier the resources should be utilized for maximum productivity. Sufficient reward should be there for all contributors of assets in the form of rents, interest on borrowings, income on capital, remuneration for employees and reward for efficient management in the form of share in profits.
