The Economy is Dying. Is Government ignoring the Real Issues?
The government promised us to boost economy upto 5 Trillion Dollars. But the GDP growth rate has come down to 5% which is the lowest in the last 6 years. The Nominal GDP is 18% which is the lowest in the last 17 years. All the sectors in the economy are facing recession.
Many economists have said that the figures of the GDP are manipulated.
According to the Former Cheif Economic Advisor of BJP Government Arvind Subramanian, the GDP rate is overestimated by 2.5% which means the actual GDP growth is 2.5%.
Demonetisation affected our GDP at a very high level. Corporate investments were reduced by 60%. Thousand of people lost their job. A lot of chaos was created due to bad implementation of the policy.
GST is a good step to simplify the taxation system. But the way the government implemented it in a complex and complicated way, it took a lot of time for Corporates and Small Firms to understand it. The corporate sector suffered a lot due to bad implementation.
The effect of Budget 2019 is also a big reason. It affected most to the foreign investment that we received in the stock market. The foreign investment is reduced by 22.5 Billion Rupees from the date budget was announced.
which is the lowest in 45 years. One more reason is Governments interference in the Public Sector and Institution. Government has handled the organisations to leaders without even seeing their qualifications. For example, Mr Sambit Patra is in the Board of Director of ONGC and he is having a degree of MBBS. ONGC used to be the most profitable firm in India but in 2018 it faced a loss of 4000 Crore Rupees in Gas Production. According to reports 54000 jobs are in danger in BSNL. Hindustan Aeronautics Ltd. (HAL) is at worst cash balance in the last 14 years. HAL had to borrow 1000 Crore rupees to pay salaries to its employees.
The increase of in banks has increased by 74% in last 1 year. According to the reports of RBI, the increase of frauds in the banking sector in the last 1 year are 74000 Crore Rupees. The government waived off loans of 2.4 Lakh Crore rupees in the time span of 2014-2017. Recently the government took 1.76 Lakh Crores from the reserve of RBI.
We may blame the Government for recession but as a citizen, it is our mistake also. As a citizen, we don’t pay focus on the real issues. We follow our leaders blindly. The media continuously spread fake news and propaganda and we believe them foolishly. They always try to divert our focus from real issues and trap us in issues like India-Pakistan and Hindu-Muslim. As a responsible citizen, we should question the government about the real issues and select our politicians rationally. We should not forget that the government is accountable to the citizens.