Ways to beat the recession On the economic front, discussion and implementation

Ways to beat the recession

Ways to beat the recession. On the economic front, discussion and implementation of measures to deal with it amidst the slowness is necessary. The government recently took steps towards merging some small banks to form large public banks so that their capacity can be increased. This is welcome, but there is a need to go beyond that. In the last two years, the government has planned to put 250 thousand crore rupees in these banks. In comparison, the total market potential of these banks today is only 230 thousand crore rupees. This means that the current level of capital is negative. Government has not been able to save the money given to these banks in two years. In such a situation, the government should privatize all public sector banks except State Bank of India. Then the government will be able to earn a huge amount of about 230 thousand crore rupees. This money can be used to increase exports of services. For example, centers to teach foreign languages ​​should be made in every district. Teachers of India can be subsidized and sent to teach in institutions around the world, bets like making films in foreign languages ​​can be tried in India. This will free the government from the headache of continuously infusing capital into banks and our service sector will grow.

The second solution is to borrow for investment. The NDA government has achieved great success in controlling the fiscal deficit in the last five years. The fiscal deficit of the government was 4.4 percent in the year 2013-14, which was 3.4 percent in 2018-19. Financial deficit is the amount spent by the government by borrowing from the market. Reduction in the fiscal deficit means that the government is controlling its spending and borrowing less. It is also necessary for the stability of the economy, otherwise inflation increases and investors are reluctant to invest, but more steps have to be taken. Of the fiscal deficit reduction that the government has achieved, three-fourth part is to cut capital expenditure and one-fourth to cut government consumption. The government kept its consumption stable and reduced capital investment — just as the shopkeeper kept the air conditioner at home and removed it from the store. The direction of government spending has a direct impact on the economy. Salary paid to personnel is the main consumption of government. If the government pays salaries to the workers exorbitantly, then most of its expenditure is spent in buying gold, investing abroad, in foreign tourism or buying foreign goods and this amount goes out of the country i.e. our economy balloons Air escapes. Therefore, the government should control government consumption and increase investment. It is not harmful to take a loan to invest, because the entrepreneur takes a loan and shops. The problem occurs when debt is consumed. Therefore, the government should do two things at this time. One, government consumption should freeze. Salaries of government employees should also be frozen. Second, investment should be increased by creating a special cell to invest. Import tax should be increased under the third measure.

On the economic front, discussion and implementation

Ways to beat the recession. The government has taken several steps to provide loans to small industries. Filing returns in GST has also been simplified. These steps are welcome, but only this will not make it happen. The problem of small industries is that they are unable to stand in front of the goods coming from China. China has the flexibility to hire and evacuate workers, which makes workers work harder and produce twice as much as Indian workers. That’s why Chinese goods are cheaper than us. To save small industries, it is necessary to increase the import tax on goods imported from China, which are mainly made by small industries. This will give big support to small industries. These will employ more workers and market demand will increase and the recession will break.

A fourth measure could be that small industries are exempted from GST. One of the problems of these industries is that the compounding scheme does not provide refund of GST paid by them on their inputs. Because of this it is beneficial for big industry to buy goods from other big industry and not from other small industry. If a big industry buys goods from another big industry, then the big industry gets the setoff of GST given on its input by the big industry that sells, but if the same big industry buys the same goods from a small industry then the seller The big industry does not get the setoff of GST paid on its inputs by the small industry. Therefore, there has been a tendency of big industries to buy goods from other big industries only. The solution to this problem is to give them a cash refund of GST paid on inputs by small industries. Only then will they benefit under the composition scheme.

The fifth measure can be taken as privatization of government education. The government has appointed honest persons to the top positions in higher education and research institutions. This is welcome, but it has not made any difference in the trend of general teacher or scientist in these institutions. Ways to beat the recession General teachers are sure to get paid, whether they teach or not. There is coaching support here. This system will not only improve with the appointment of honest persons at the top. For this, it is necessary that the government should privatize the entire government education system and distribute free vouchers to all the youth of the country with the unspent amount and the amount spent every year, so that they can get their desired educational institution.

Development of Indian Administration

1,307 thoughts on “Ways to beat the recession On the economic front, discussion and implementation

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