Many countries are facing the problem of over borrowing, more expenditure, more financial commitments, low income generation, default in fulfilling the financial commitments. The problems are not due to very short period but postponed for long period.
Under such circumstances immediate solutions are not possible. It should be mentally prepared to fight in the long run. It is fight with unknown enemy and fight in the dark. To overcome the situation, steps at three stages of immediate, short term, long term are required. Start with
“WE WILL WIN”
- Immediate Steps: Savings to be used for repayments.a). Strictly monitor the outflows of all types.b). Identification of revenue leakages for longer period.
c). Strict monitoring for expenditure by Government, Corporate, Individuals, All Organisations.
d). Encourage Savings from food, fuel, power, transportation, entertainment and un-productive, under productive expenditure should be discouraged
e). Employments should not be effected in the name of cost cutting, other Expenditure can be reduced. Even 10%
reduction of expenditure is also more effective and more useful.
f). Accountability at all levels of Govt., Corporate, Individuals and all organisations.
g). Steps to increase the productivity of money, men, material, message, motivation.
h).Utilise the Savings and Investments for repayments.
i). Starting a Debt relief fund, by giving tax incentives, maturity benefits, with citizens cooperation.
j). More productivity of investments, borrowings, commercial organisations should be encouraged.
k). Financial Institutions should lend for investment and not to use their funds to lend for expenditure.
- Short term: Consolidation of gains of savings, and preparing to fight in the long run.a). Preparing long term Direction, destinations to be achieved along with the schedule to be implemented.b). Slowly neutralising the immediate effect and moving towards stability.
c). Continuing the implementation of immediate steps with minor relaxations based necessity.
d). Educating, convincing, motivating the citizens for longer fight and steps for non re occurrence of the same situation.
f). Restrictions on expenditure to be continued, savings in all sectors be assured and encourage productive investments.
g). Start regaining control over the financial situation, start fulfilling the commitments.
h). Revenue leakages based on past experience needs reconsideration, rectification, reconciliation.
i). The wrong doers in the past should be booked and brought to the streamline along with punishment.
j). Assurance of the commitment to the productivity, savings, borrowings only for income earning.
k). Unearth the hidden, idle assets, investments, areas of unproductive, under productive expenditure.
- Long term: Preparing for Strong Economy.a). DRIVER : Directions, Regulations, Implementations, Verifications, Examinations and Results should correlate.b). Dependence on borrowings for spending, unproductive, under productive expenditure should be discouraged.
c). Dependence on over borrowings not related to growth be discouraged.
d). Steps should be consolidated for surplus in every sector. Enjoying the advantages of preparedness in advance.
e). Reach the stage extending helping hand to the needy.
f). All the needs, aspirations, valid expectations of citizens should be taken care off.
f). Motivating for the strong economy for Individuals, Corporate, Govt., and all other Organisations.
g). Rationalisation of taxes structure, incentives, trade policies, commercial social responsibilities,
h). Agreements in every sector in advance to avoid future conflicts. This step will avoid disturbances.
j). Specification of citizen charter with schedule of time, allowed and not allowed.
k). Continuing the spirit and implementing the same for the long period.
