Political Impact on Economics

Poor Politics, Poor Economics Walk into the cool meet of the slur of the Rural Development Minister, Jairam Ramesh, and one can key console Carnatic instrumental music crooning softly from a fist-size speaker system attached to his laptop. In the office, austerely grace with cane furniture and stacks of music CDs and books neatly lay on a large glass-top desk, is the minister, sitting hunched with his genius 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 appointment on several(prenominal) fronts. In the nearly two decades of coalition administration in India, the last 24 months have witnessed a hit segmentation of effective political machinery, which has derailed economic reforms. Ramesh is in-charge of one of the virtually main(prenominal) ministries of the government, Rural Development, which administers flagship schemes like NREGA, allocated Rs 76,376 crore in the budget 2012-2013.   While it has been accomplished that these schemes are fraught with leakages and corruption, their importance in a body politic where more than half of the population live in agricultural 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 illuminating 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 identicalness card. Ramesh, insurance policy watchers, economists would like to see re-jigging of expenditure, reducing Indias gargantuan subsidy bill and a llocating resources towards roads, ports, ra! ilways, 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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