Aren’t we back to all erstwhile admonitions regarding crony capitalism, financial misgovernance ?
Perusal of an article, and I slipped unto a stage of retrospect ! The retrospect attributable to all discussions on financial misgovernance & crony-capitalism!
However, today’s retrospect was influenced – primarily by this FACTUAL para of Mint’s article :
The new version of the explosive House of Debt report, first released in 2012 by investment bank Credit Suisse and now updated, is a useful reminder that a lot of the problem is concentrated in 10 large conglomerates that have gorged on debt. They account for more than a fourth of all corporate loans. These business groups have seen their debt grow seven times over the past eight years. Their interest coverage ratios are low enough to raise questions about their ability to service their debt.
We all erroneously persist under influence of an illusion of being the sponsors of the economy – via our tax outgo, primarily unaware that the valuation of the same outgo – is a direct consequence, repercussion of the merit in policies that the power centers undertake and embark on! All economic policies affect the quality of utilization of our taxes, determining who would be the beneficiaries and who would incur the fiscal burden of whom – in the system!
The aforesaid extract of facts – is a classic illustration of how crony capitalism or misgovernance – discards the utility of our fiscal revenues & consequently impedes growth! Mammoth public resource proportions are being depleted on clearly discernible lost ventures! How much proportion is being ridiculed, discarded or is for some selective beneficiaries – with affinity to power centers! Despite being privy to the fact of initial adverse interest coverage ratios, and imminent impairment of recoverable, debts were being extended – by public owned financial institutions!
Consequently, as was always discernible, when such financial institutions incur losses, our taxes would be condemned & misapplied for ‘rehabilitating’ same PSUs (which were ridiculed into losses, all through in know of the facts)! Crux being all through misapplication! First you create a sick body, then waste public resources to make it stand again!
Similar misgovernance scenario persists in DTC, AirIndia, MTNL – relinquishing profitable routes in favor of some entities, delayed adoption of 3G technology etc – which are alike victims of financial misgovernance, erroneous govt policies (deliberate or inadvertent), and would sooner or later be a burden – to be serviced – utilizing our public funds (which ought have been utilized for developing infrastructure, growth, rehabilitating vulnerable strata etc)!
Grave questions also stare at paid media / Comptroller Auditor of India – for not aptly accentuating such issues in public domain !!
All those who were in oblivion of crony-capitalism – while voting – have alot to introspect ! All are incurring repercussions of their oblivion! Isn’t it ??