For the guy who does not have his basic needs satisfied the Government is answerable. However i felt it is answerable to me too considering i am paying more than a third of my income as various forms of taxes. And i am one among the 10-13% (i think this number is right) of the population which pays taxes. From the money they collect from me if they do not provide the requisite infrasctructure then thats pathetic. In essence there is no accountability.
However now to woo the votebank (the ones who diligently go and vote everytime. sometimes more than once in every given occasion ;-P ) the politicians stoop to pretty low levels.
Give free colour televisions (two states in India have done that now - my home state and the state where elections are currently on). On money collected from taxes . hey that i thought was for basic infrastructure!!! After rodi, kapda and makaan, now its tvs too ;-P
Industry busting - well when inflation has gone up because of oil and food in the country, levying a ban on cement price increases seems absurd. That too in a year when prices have gone up by only 4% yoy and when cost of the inputs have gone up higher. If Government is seriously concerned about cement prices then it should bring down indirect taxes. Instead they hiked it and being indirect it is passed on. Hey then thats a double whammy. In my opinion they should take a cue from a neghbouring state of my home state. That state is implementing a low cost housing scheme for which cement consumed is given at subsidised rates while for the general market at market determined rates. Thats logical - give cement at lower rates for those who cannot afford not for those who can.
Next comes steel - thats the next target. When their cost of inputs and prices are determined by global factors a ban on increasing prices might b the dynamics of the industry. They would be operating at a loss (as cost of inputs are signifcantly risen in the global market while prices are being asked to cap here).
These steps will only discourage industry to put up fresh investments in the longer term and hurt employment opportunities and development in long term. The only objective of the Government at the end of all this is to create noise in the public domain that steps are being taken. yes steps are being taken but in the wrong areas - result impact being seen in inflation. Despite all these freezes inflation is still on the rise !!!
This takes the cake however! Waiver on farm loans - phew. Though this seems greatly benevolent it is a repetitive case and only inculcates bad habits among borrowers. Result even the biggest of the public sector banks has said it will stop loans for tractors in the country. Thats proof enough of the point being made. If you tell someone hey every five years i will write off your loans you just keep borrowing then one only encourages a farmer to borrow (just because he is a farmer) and use for other purposes. Because he very well knows he does not need to repay. I would have been happier if there were reduction in interest rates or some such step but waiver on loans thats bad economics.
