The Congress Govt. at Center
has through its Media in Chief Ajay Makan and food minister K V Thomas claimed
that the Govt. has sufficient money to finance the Food Security Bill, which is
totally false and misleading. Will the Congress reply if there is enough money
why the Central Govt. in various successive Budgets have adopted the mode of
Deficit Financing, both in the Revenue as well as the Capital account? This has
lead the Indian economy to Hyperinflation Phase and hence resulted in
devaluation of Indian money. Even various methods tried by the RBI efforts to
curb inflation have found no result. The Govt. which has for regular
Expenditure failed to meet its revenue and adopted the way of deficit financing
is now claiming that it has enough funds to meet a Rs. 1,24,000 Crore food
subsidy expenditure per year. Is it not misleading the Indian Public and bringing the country in deep financial Crisis?
Hyperinflation is a spiral of
inflation which causes even higher inflation. The initial exogenous event might
be a sudden large increase in international interest rates or a massive
increase in government debt due to excessive spending’s. Whatever the cause,
the government could pay down some of its debt by printing more money (called
monetizing the debt). This increase in the money supply could increase the
level of inflation. In an inflationary environment, people tend to spend their
money quickly because they expect its value to decrease further in the future.
They convert their financial assets into physical assets while their money
still has some purchasing power. Often they will purchase on credit.
Eventually, the currency loses all of its value. Because of this, the level of
savings in the country is very low and the government could have problems
refinancing its debt. Its solution could be to print still more money starting
another iteration of the vicious cycle.
In economics, hyperinflation
occurs when a country experiences very high and usually accelerating rates of
inflation, causing the population to minimize their holdings of money. Under
such conditions, the general price level within an economy increases rapidly as
the official currency quickly loses real value. Meanwhile, the real values of
economic items generally stay the same with respect to one another, and remain
relatively stable in terms of foreign currencies. This includes the economic
items that generally constitute the government's expenses.
Unlike regular inflation,
where the process of rising prices is protracted and not generally noticeable
except by studying past market prices, hyperinflation sees a rapid and
continuing increase prices and in the supply of money, and the cost of goods.
Hyperinflation is often
associated with wars, their aftermath, sociopolitical upheavals, or other
crises that make it difficult for the government to tax the population, as a
sudden and sharp decrease in tax revenue coupled with a strong effort to
maintain the status quo can be a direct trigger of hyperinflation.
Food Security does not only
mean providing subsidised food to the citizens, but can also be done by
providing them employment, empowering them, creating opportunities and
resources for the citizens . It is a better way as it makes them self-reliant
and creates work culture amongst citizens. Hence helps their confidence and
self-esteem. On the other hand this food security bill will only promote
corruption and the subsidised food to be distributed through Govt. machinery
will be manipulated by corrupt Govt. officials and politicians and find way in
the Black market, hence make the people dependent and beggars. Will the
Congress Govt. state what was wrong in the river linking program of NDA Govt. ,
which would have provided enough inputs and factors of production to generate
job opportunities in the rural area of India ? This could have helped to
increase the food grain and farm production in India by many folds , generated
jobs in almost every corner of India. The Congress Govt. does not want to make
the people self-reliant , strong, educated and empowered, but make the people
dependent on the mercy of Govt.’s and the officers , so that they can always be
used as a Vote Bank.
The Congress after remaining
in power for over 55 years in Center and after 67 years of independence have
now waked up- to give subsidised food to the Indian poor at the cost of
Development of India. Will the Congress narrate how it will meet the cost of
1,24,0000 Crores of Bill? Will it be at the cost of Development of India or
heavy Taxation on the Indian public? A Govt. which has failed to provide food to only 10
lakhs (about) disaster hit Uttrakhand people at the time when it is most
needed, claims to provide food for over 50 Crores Indian ? Is it not a vote bank
Politics?
