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Need multi pronged approach:
1) Embark on a big privatisation scheme. There’s no opposition let’s not misuse this mandate to get rid of our past sins. A company in Govt hands and a company in private hands will add at least 5% - 8% to productivity and growth.
1) Embark on a big privatisation scheme. There’s no opposition let’s not misuse this mandate to get rid of our past sins. A company in Govt hands and a company in private hands will add at least 5% - 8% to productivity and growth.
2) As we privatise we will get foreign capital on negative interest rates. Why wouldn’t anyone raising capital at negative rates buy out a stable NHPC, Coal India? By running inefficient PSUs the Govt has already privatised the sector so why not the companies?
Do the richest countries in the world own coal, rail and oil assets. They don’t. They own Gold, Bonds and dollars. Let’s make up our mind of either being on the right or left.
3) Completely abolish DDT and LTCG. This will help the Govt get top bucks for its assets (above).
3) Completely abolish DDT and LTCG. This will help the Govt get top bucks for its assets (above).
Embark on a concessional rate regime.Encourage production and consumption of goods - both for the domestic and also the export market. Get rid of the riders.They are putting their money in here. They carry more risk - we don’t! We can always rectify things through an ordinance.
4) Adapt the Direct Tax code with a definitive timeline. Fy 21 is a good time to start with.
5) As we implement (1) the fiscal deficit will dramatically improve and the foreign capital will help the rupee appreciates against the dollar.This will lead to aggressive rate cutting.
5) As we implement (1) the fiscal deficit will dramatically improve and the foreign capital will help the rupee appreciates against the dollar.This will lead to aggressive rate cutting.
6) As the @RBI reduces rates real estate and other segments of the economy will start seeing growth. Transmission of rates isn’t happening now because the rate reduction is less than inflation. So real interest rates are still the same.Real rates have to come down.
7) Invite foreign capital. Work backwards to give them a 10%-12% RoCE to invest here - if required give them a confessional rate of 20% corporate tax for the first 10 years of existance. Govt cash be user only where the RoCE can’t be generated but which still have to be done.
8) The Govt has no business to be in business. Sell of the excess land parcels; the Air India buildings; the Navy Nagars; the land adjoining the railway stations.
9) Even the Govt unlisted assets will go the MTNL, BSNL and Air India way.
9) Even the Govt unlisted assets will go the MTNL, BSNL and Air India way.
Try and encash the VSNL and the CMCs and the Hind Zinc. Example Govt has no business to be selling cement - privatise CCI asap.
10) Let the rich get richer. They employ the poor; countries that are most developed have the largest billionaire populations in the world.
10) Let the rich get richer. They employ the poor; countries that are most developed have the largest billionaire populations in the world.
11) People in control should read on how the U.S handled the 2008 crisis. They took all toxic assets on their books, opened an undefined line of credit. This Holier than thou attitude of letting companies die even while causing systemic damage has huge consequences.
Finally, legitimate wealth is not a crime. It’s a just a way to keep score. Let’s all help the poor aspire to be rich rather than tell them that money is always earned through wrong means. That’s what makes America great. That’s what creates the spirit of enterprise !
