$5 Trillion : A Dream or a Reality ?

Business India,
28/8/19

The government of Shri Narendra Modi has recently been re-elected with a thumping
mandate. Unfortunately, in the last 2-3 years the economic growth of our country has seen a
slowdown but still the Prime Minister of our country has set up an ambitious goal of making
India a $5 Trillion economy by the end of his second term albeit 2024. Becoming a $5 Trillion
economy of this world will surely be a booster for the prestige of our country and further
strengthen our growing influence and standing of our country. It will also give our PM one more
reason to chest-pump when the elections are due again in 2024.

Nirmala Sitharaman, the current Finance Minister has put up a show of intent with this
budget but it still lacks in taking any concrete measures to boost our economy. It is heavily
dependent on the Private Sector and the Private Sector has shown signs of its disappointment.
They have clearly indicated that they only want to invest if the government takes the first step
and the initiative and leads the investment rounds from front. A lot of common people have been
left disappointed because the budget didn’t offer anything significant to them. The F.M. has also
increased the taxes on the high net worth individuals considering that they should contribute
more to nation building. But not everyone agrees and there is a chance that some young
entrepreneurs and corporates may decide to leave India for greener pastures.

Our economy is currently growing at a rate of 5-6%. For this target to be achieved we
need to grow at roughly 8% for the next 5 years which is quite challenging taking in reference,
current policies, global investment climate and volatility. The government needs to take urgent
steps otherwise this target would surely be not achieved. We, as a country need our economy to
grow at a faster pace for innumerable reasons. It would be one of the greatest achievements of
this government if they are successful in achieving this goal.
 Transfer of Funds from RBI to Union Government.
The Hindu
29/8/19

A while ago, the now former Chairman of RBI landed himself in hot water because of his
opposal to the idea of transferring extra RBI funds to the Union government. Subsequently, he
resigned from his position and Mr. Shaktikanta Das was appointed as the Chairman of RBI. He
was on very good terms with the government and thus he was appointed as a “Lame-Duck”.
Recently, the Jalan committee was set up to give its recommendation on this issue and as
expected, the ruling came in favour of the government and the RBI will have to empty up its
coffers and pay the Union government a total of Rs. 1.76 Lakh Crore.

The government has set up quite-a-few very ambitious goals and needs a lot of cash to be
infused into the economy to fulfill its targets. It is a well known truth that the government has not
been able to collect the required amount of taxes and is in dire need of cash. The government
also does not want to disturb it’s fiscal deficit. Thus, taking money from the RBI seemed like the
only option to them.

The government may have the best interests of the nation at its heart but it is walking on
thin ice. The RBI had valid reasons to say no the government. Now, in the event of an economic
slump the RBI won’t have enough economic might to control the situation. Its back would be
against the wall and won’t have much breathing space. Though it would be possessing a
minimum amount but extra cash always comes in handy during a crisis. Warren Buffet once said
that his company, Berkshire Hathway was able to deal with the 2008 financial crisis only
because they were sitting on piles and piles of cash. The government needs to solve the original
problem it has : Low tax generation and stop disturbing the autonomy of India’s most sacrosanct
institution.
 Uproar In The United Kingdom.
The Indian Express
30/8/19

On 23rd June, 2016 The United Kingdom decided to leave the European Union. This
move caused uproar, chaos and confusion all over the world. This move will have far-reaching
consequences all over the world rather than just Britain.Such has been the complexity of this
crisis that it has been a little over three years and two Prime Ministers have lost their jobs but
still no one has been able to figure out the best way to get out of the EU.

The newly appointed Prime Minister, Boris Johnson has been a cause of controversy over
various reasons. He supports a “NO DEAL” Brexit. He is a textbook example of a
‘Protectionist’. He and his brand of supporters have seemingly infinite amount of faith in the
capabilities of his country. His supporters are talking about “Believing in the UK”. This is the
root of problem. The people who support Brexit have never experienced a real crisis in their life.
The UK, in its last 70 years has seen a very stable and continuous growth. These guys have only
experienced the rosy days of stability and that is the reason over their belief that nothing can stop
our growth. The UK is scheduled to to leave the EU on October 31. Boris, as he is fondly called
by his supporters, has dissolved the parliament till October 15, virtually ending any chance of a
fruitful debate in the Parliament. This will give the opposition virtually no time to oppose in the
Parliament. This type of move should be considered equivalent to quelling of opposition and thus
undemocratic. This move must be opposed vociferously by the opposition and common people.
The common people must not let their PM toy with their democracy and their future. Also, there
have been persistent doubts about the fairness of the Brexit referendum due to the involvement
of Cambridge Analytica. There is a very big chance that people have been led astray with the
help of social media and their brains washed. Mr. Boris Johnson, with all due respect, does not
know what he is leading his “BELOVED” country into. He must block Brexit and call for a free
and fresh mandate over Brexit as well as himself.

By,
Revant Shah
19110030
B.Tech, First Year