Political Impact on Economics

Poor Politics, Poor Economics Walk into the cool contact of the slur of the Rural Development Minister, Jairam Ramesh, and one can escort console Carnatic instrumental music crooning softly from a fist-size speaker system attached to his laptop. In the office, austerely adorn with cane furniture and stacks of music CDs and books neatly set up on a large glass-top desk, is the minister, sitting hunched with his soul buried in his palms. Well it has been in fact a long pass of discontent for the Congress-led UPA, as it fights a losing affair on several(prenominal) fronts. In the nearly two decades of coalition politics in India, the last 24 months have witnessed a spot segmentation of effective political machinery, which has derailed economic reforms. Ramesh is in-charge of one of the most(prenominal) main(prenominal) ministries of the government, Rural Development, which administers flagship schemes like NREGA, allocated Rs 76,376 crore in the budget 2012-20 13.  While it has been conventional that these schemes are fraught with leakages and corruption, their importance in a res publica where more than half of the population live in unpolished areas cannot be undermined. Allocations have been made on certain assurances and that cannot be taken away, says the Chairman of the Prime Minister Economic enlightening Council, Dr. C. Rangarajan.

Rural Development has one of the highest budgetary allocations. But India spends a lot more in subsidising food, fertiliser and fuels - nearly 2.5 per cent of its GDP or Rs 2.16 trillion is spent on subsidies targeted towards the economically weaker section of the population.  There has been much debate and analysis on the efficacy of! subsidies and the overwhelming consensus is that the government cannot afford its subsidy identity element card. Ramesh, insurance policy watchers, economists would like to see re-jigging of expenditure, reducing Indias giant subsidy bill and allocating resources towards roads, ports, railways, power, and rural development.  FROM THE...If you want to get a full essay, decree it on our website: OrderEssay.net

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