Sunday, 3 November 2013

Understanding the government..Part 9 (Inox or Politics?!)

(From this part on-wards, the narrator will be Raju himself! He feels that he will be able to connect with the readers in a better way! So, let Raju take over!) 
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I was sipping the tea, and my mind was ploughing through the details of administration and whatever Vani aunt explained.

So, as the King, I am just a trustee of public resources. Though it appears that I own all of them, in reality, I don’t. I have just the right to put them to use prudently and ensure that the public get the ultimate benefit.

Of course, I get the assistance of wise men, who are either my ministers or secretaries. They are in this job for long enough to be experts, and they give me expert advice, which generally works. But, finally it’s my common sense and knowledge which will help me in taking decisions that will affect lakhs and crores of people. So, I need to be aware of things and know the pulse of the people.

I stood up, gazed at the distant mountains. The responsibility weighed heavily on my shoulders. Yes, I have a huge team to assist me. But, finally, the decisions made are seen as my decisions. So, I need to be really good. At-least good enough to bring the best out of my team!

Am I? Am I the best available in this country now? Here, in 1900 AD, I can become the king just by my ancestry. But, in 2013, I need to prove myself and win the election! That only will be a proof that I am the best option available to the people, on whose hands they are safe.

Suddenly I understood the importance of election as never before. The votes people cast decide their future. It decides who will sit in the throne and what decisions he will take. Will he support more industries? Will he support agriculture? What is the balance he will maintain? Will he help the poor and needy? How?

“What are you looking at Raju?”

“Nothing aunt, just was thinking of the responsibilities. Spider man was right. With great power comes great responsibility!”

“Haha Haha!!!” Aunty burst into laughter!! “Are you missing your Zoya too?! You want to go back to 2013 Raju? Are you Time-sick, Zoya-sick?!!”

“No aunty! I want to understand the system well so that on my return I can do something. Then probably Zoya also will admire me!” I twinkled at Aunty!

“I like that Raju. Only if brilliant young guys like you enter politics or administration, then things will improve. Once upon a time, the best minds in the society joined the government, and thus government was able to handle the issues of the society ably. But, no more! Now, the best brains go elsewhere too! How many of the young bright things queue up for the US, UK VISA!

So, while the problems of the society have grown in complexity, the solution provider; the government is finding it difficult to tackle the situation in absence of the best talent.”

“But, aunty, tell me, who will like to waste their bright future in a government set-up which is not the best system and where development is so difficult as the system, as you explained is based on mistrust?”

“I agree with you Raju on that. But, isn't the catch 22 situation? Best brains can do something to change the system. But, they won’t come until the system is changed!”

“Hmm, I get you aunty. I think, the starting point is sacrifice by a generation in getting into the government and changing it for better! Once that is done, and then the positive cycle is established! Then it will attract the best talent itself! Am I right?”

“Perfect Raju! But, who will get into the muck to clean it? Who will get into the perceived ‘dirty politics’?”

“That’s the question Aunty. May be if we explain them about the government, they may be interested. Most of the youngsters, trust me aunty, have no idea about politics and government, than what they show in hollering TV shows or from the boring civics books!”

“What you say makes sense Raju. May be we need to take them closer to the government so that they can understand it better. Then they can make an informed choice.”

“Yes aunty. Let’s do that. Let’s start it. Politics is not a bad word, unless we leave it to the worst.”

 “I am happy to see the change in you Raju! I would want more youngsters like you to think in this way!”

“They will aunty! Once I go back I will tell them. Or will you increase the seats in this time machine?! Lol!!”

“Haha I can do that, and make them pay too! I will charge less than the gold class ticket in Inox my boy!”

“Lol, aunty! Are you also running in deficit?! By the way, you didn't tell me about the deficit budget!”

“Oh yes, I forgot. That’s very simple to explain!

When there is a gap between the expenditure of the government and the revenue earned by it, then we call it a deficit. For example, if your revenue is 100 crores and if you are spending 110 crores, then your deficit is 10 crores. Then your budget is called as deficit budget! Next year, you need to pay 1 crore interest on the loan you have taken, plus your fresh borrowing of another 10 crore loan, thus 11 crores! It goes on like this!”

“Is that bad?”

“Yes, as the widening deficit will lead to more money to pay the interest on the loans. Thus, beyond a point, the government may find no money to pay back the loans, what we call as ‘bankruptcy’!”

“Then why governments do the deficit budgets?”

“Interesting question! Ok, imagine this situation. There is a small family of parents and two kids. The monthly income of the family is rupees 5000. Of that, 4000 goes towards food and clothing. Now, only 1000 rupees is left, and the cost of schooling for each kid is 1000 per month.

What should the head of the family do? Should he educate only one child or borrow another 1000 and educate both?”

“Of-course, he should borrow and educate both! It’s good for their future! They can grow up and pay the loan later!”

“Right! That is because, the expenditure of education is so important, that it’s justified to borrow. Same manner, the government is justified in borrowing to spend on the necessities! More so, in a developing country, where the income is less and expenditure is more. If we don’t borrow and spend on the minimum requirement of the society, then we will take a very long time to develop!”

“I get it aunty. So developing countries will be borrowing more!”

“Yes Raju! Imagine you building an additional railway line with borrowed money or network of roads which will boost the economy! It’s worth it. Is it now?”

“Yes aunt! I get it! Just that, I need to ensure that the deficit is within limits, so that I can pay the interest on the loan, at least!”

“Yes, you got it!”

“It means, every paise of my revenue is very important. Also my deficit! Now, I understand why the finance commissioner was worried about deficit.

So, I have to keep the deficit as less as possible! It means, my tax waiver shall be as low as possible so that my budget deficit does not go beyond, say 5%?”

“Perfect Raju! You are picking up really fast! Tell them this in the tomorrow in the meeting!"

I just smiled. I saw myself getting involved into this. I think I will also take tours into the countryside to understand what happens there. Are the decisions taken here are implemented there?


After the meeting I will go on tour. I will observe things for myself. You guys must be having Diwali holidays! Enjoy yourself! I will meet you next Sunday again, and we will see how the meeting went and where I will go for my tour!:)
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(To be continued next Sunday...)

2 comments:

  1. Very well written, just curious to know, what is real reason behind current account of deficit...?

    ReplyDelete
  2. It's too complex to write here! But, yes, deficit comes when our total receipts is less than the outgo.

    ReplyDelete