http://www.business-standard.com/article/economy-policy/cut-energy-fertiliser-subsidies-to-make-up-for-food-security-montek-113020600706_1.html
The Planning Commission of India is a body comprised of top economists and headed by the Prime Minister in order to decide on the nation's economic issues. It is a powerful body and controls the levels of subsidies, Government involvement, etc.
Essentially, the deputy chairman of the planning commission makes most of the decisions as the Prime Minster almost always listens to him without question. Presently, Mr. Montek Ahluwalia is the Deputy Chairman. He was educated at Oxford, was the president of the Oxford Union, has served in the World Bank, and, in my opinion, is a complete idiot. The person has no idea about the indian grass-roots society and is making decisions that affect the lives of many.
In the article, you all can see another such instance of his foolishness. He wants to cut energy and fertilizer subsidies at a time when they are of utmost importance. Cutting fertilizer subsidies will raise the price of food and the middle-class, already depressed because of drastic increase in price levels in a short-period of time, would again bear the brunt.
Similarly, reduction in energy subsidies would cause the prices of everything to go up. Mr. Ahluwalia fancies himself as a reformist. However, he needs to realize that in order to reduce Government involvement in the private sector, one needs to make sure that the country's population would have employment. In a country where still about 40% of the population (more than the entire population of the United States) lives below the poverty line, one cannot reduce subsidies at a time when the economy is not growing, people are finding it hard to get jobs, and the middle-class is reeling under high prices.
Also note that Mr. Ahluwalia wishes to reduce these subsidies in order to accommodate the Food Security Bill. This bill was actually the brainchild of the President of India's biggest political party. The president's name is Sonia Gandhi and she currently holds no political position. However, she is the most powerful person in India as the Government was formed by her party. She herself could not become the PM because she was born in Italy and became a citizen of India only after her marriage to an Indian. Under her, nepotism runs wild. The prime minister, cabinet ministers, and even the deputy chairman of the Planning Commission are all her lackeys. And therefore, they would rather reduce subsidies and hurt the citizens than not implement her brainchild bill (Food security) and annoy Mrs. Gandhi.
The Planning Commission of India is a body comprised of top economists and headed by the Prime Minister in order to decide on the nation's economic issues. It is a powerful body and controls the levels of subsidies, Government involvement, etc.
Essentially, the deputy chairman of the planning commission makes most of the decisions as the Prime Minster almost always listens to him without question. Presently, Mr. Montek Ahluwalia is the Deputy Chairman. He was educated at Oxford, was the president of the Oxford Union, has served in the World Bank, and, in my opinion, is a complete idiot. The person has no idea about the indian grass-roots society and is making decisions that affect the lives of many.
In the article, you all can see another such instance of his foolishness. He wants to cut energy and fertilizer subsidies at a time when they are of utmost importance. Cutting fertilizer subsidies will raise the price of food and the middle-class, already depressed because of drastic increase in price levels in a short-period of time, would again bear the brunt.
Similarly, reduction in energy subsidies would cause the prices of everything to go up. Mr. Ahluwalia fancies himself as a reformist. However, he needs to realize that in order to reduce Government involvement in the private sector, one needs to make sure that the country's population would have employment. In a country where still about 40% of the population (more than the entire population of the United States) lives below the poverty line, one cannot reduce subsidies at a time when the economy is not growing, people are finding it hard to get jobs, and the middle-class is reeling under high prices.
Also note that Mr. Ahluwalia wishes to reduce these subsidies in order to accommodate the Food Security Bill. This bill was actually the brainchild of the President of India's biggest political party. The president's name is Sonia Gandhi and she currently holds no political position. However, she is the most powerful person in India as the Government was formed by her party. She herself could not become the PM because she was born in Italy and became a citizen of India only after her marriage to an Indian. Under her, nepotism runs wild. The prime minister, cabinet ministers, and even the deputy chairman of the Planning Commission are all her lackeys. And therefore, they would rather reduce subsidies and hurt the citizens than not implement her brainchild bill (Food security) and annoy Mrs. Gandhi.
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