Government and its business.....

GOVT. is ensuring that media repeatedly screams "oil PSUs suffering heavy losses due to non-revision of petrol/diesel prices and that these companies are on the verge of bankruptcy and left with little money to import crude". As a result, surprisingly, almost entire Indian population (including the so called elite, intellectuals, economists, professionals) have been made to believe that this is a crisis never-seen before and petrol/diesel prices should be hiked by anywhere between Rs 10-17 per litre. However, nobody is asking and Govt is also not revealing the other side of the coin. Actually, Govt is basking in the misery of Indian consumers. Govt imposes heaviest duties (in the form of import duty, excise duty, sales tax etc) on crude/petrol on ad-valorem basis. Crude was USD 51 in Jan 07. Now it is touching USD 135/ It means that revenues of Govt from this industry have risen( 130-140%) directly in proportion to rise in crude prices. Why Govt not reveals as to by how many billion dollars its revenues are increasing? When rising inflation is hurting every citizen, least Govt could do is to reduce various duties on crude/petro in such a proportion that its revenues stand at Jan 07 levels. However, govt continues to make a fool of citizens and its main objective remains to extract maximum possible taxes.
Apart from Govt, private refineries are also big beneficiaries of rise in crude prices. Reliance reported 35% rise in profits. This is due to export of diesel(although PSUs import) and company gets big export duty drawback for diesel exports although it dont contribute to oil subsidy bill. A restructuring of tax in petroleum sector can bring a great relief to consumers. Reduction of import duty from 5% to zero alone can give 15000 cr worth relief to oil PSUs. Cess collected by govt from crude oil productionis more than 7500 cr per annum. Where this money is going??

Companies like Reliance and Cairns will be biggest beneficiaries of surge in crude prices.

Indian Govt was never serious to come out with policies to curb consumption of petroleum products. On a scale of 0-100, India's dependence on crude is 95 which is dangerous. Govt has given huge tax concessions for setting up multiplexes(to see films), SEZ etc. Instead, Govt should have given incentives to those companies which invest heavily for mass transportation systems. For example, Govt should have 20 year Income tax exemption to those companies who start monorail and metro rail in various big cities. Govt should have given subsidies for plying comfortable and even luxury buses in various cities. Instead, govt reduces excise duty on cars. In Mumbai, nearly 1600 cr are being spent for a 2-3 km long sea-link. With this kind of money, second-layer expressway could have constructed spanning 30-40 kms covering entire mumbai city from Borivali to Churchgate and plying of cars on raods would have come down heavily and really heavily.

During India's freedom struggle , nation rose to new heights mainly due to sufferings of saints like Mahatama Gandhi. However, now there has been a deplorable decline in moral standards and national character, due to a universal clamour for rights, real or imaginary, to the neglect of duty.
By and large, freedom to our politicians and bureaucrats has come to mean the right to enjoy the good things without obligation to work and freedom to do what they like. Sadly, there has been a deplorable drift towards an over assertion of rights and a psychological climate has been produced of universal obsession with rights and all but a total forgetfulness of duty. This has become fashion of the day, so much so that the mouthing of boisterous slogans has come to be regarded as more respectable business than silent performance of duty. Duty and discipline are very breath of corporate life for all sectors of the community. Rights and duties are not only reconciliable but inseparatable. Indeed, they are two sides of the same coin. Lopsided emphasis on rights, without matching attention to duties, is not only immoral but will cause huge economic damage to country's economy.

I reiterate that unless Govt improves its own efficiency, cuts wasteful expenditure, Indian economy can worsen. Huge tax collections are not producing desirable/adequate benefits on ordinary citizen's life. Inflation is unlikely to come down significantly. A big way to reduce inflation's brunt is that Govt should concentrate on putting its house in order rather than pressurizing cement/steel companies to reduce prices.

Hail the GREATEST of all businessmen....the GOVERNMENT