Recently i came across a new propaganda campaign of AAP it was
amazing to see the capacity of the people to get fooled by false allegations as
no one bothers to cross check that whether there is any substantial fact behind
the claim or not....................... for example the recent attacks on
Modi's Gujraat development model by AAP supporters is based on the debt of
Gujraat they are giving some very high numerical figures in terms of overall
debt and also in the breakup of per capita debt or debt revenue ratio or debt
percentage with respect to GDP of the state these are all few reference ratios
and as we all know economy is not as absolute as science or mathematics because
everything is referential.
So keeping that in mind we need to analyse the situation with a
vigilant mind and keep a clear reference frame in this article it will be debt
to development however before proceeding to that i will shed some light on some
of the ratios mentioned above for the sake of comparison at later stages.
1) According to planning commission in 2001-02,the public debt of Gujarat was 38.78% of GSDP. There is
is a steady decline in debt over the years and the Budget Data shows
that revised estimates of Public Debt for 2012-13 was at 19.93% of GSDP. Debt.
The Interest payment on the debt as a
percentage of revenue receipts also has been on a constant decline, from 26.82%
in 2004-05 to 14.52% in 2012-13.
2) The ratio of total public debt as a
percentage of total revenue receipts is considered to be one of the parameters
for evaluating the sustainability of debt. As per the review of Fiscal Reform
Facility by Ministry of Finance (MoF), a benchmark of 3 for this ratio
indicates that the State is highly stressed in terms of debt and debt
servicing. In case of Gujarat the total debt to total revenue receipts is
showing a declining trend indicating an improved debt sustainability of the
State, This ratio dropped from 2.86 in 2004-05 to 1.83 in 2012-13 emphasizing
that Gujarat’s debt is well sustainable.
3) And as we are discussing Gujraat so
critically it would be interesting to examine the situation at
the center. The Public debt of the Central Government was an astronomical
Rs 44, 68,714 crore, or 49.8% of the GDP. In contrast Gujarat’s public
debt was Rs 1, 38,978 crore or 19.93% of GDP. An IMF Report estimated
India’s debt to GDP Ratio as 68.05%, thus making it the highest among the BRIC
countries. Further, High debt to GDP ratio tends to dampen the credit
worthiness of our economy. Viewing its increasing debt, Fitch had cut India’s
outlook to negative from stable in the recent past.
Any ways these were few points on which economy is judged normally small technical details of which most of the public is mostly unaware ................... now i will come to the main comparison.............................................
Following is the list of top 10 countries which are considered economic superpowers of the world however don't mistake the rankings with their wealth as the list and the ranking is based on their external debt.
| Rank | Country | External debt[US dollars | Per capita] | % of GDP] | |
|---|---|---|---|---|---|
| 1 |  United States | 17,344,649,888,999 | 52,170 | 106 | |
| 2 |  United Kingdom | 10,090,000,000,000 | 160,158 | 406 | |
| 3 |  Germany | 5,719,000,000,000 | 57,755 | 142 | |
| 4 |  France | 5,275,000,000,000 | 74,619 | 182 | |
| 5 |  Japan | 3,024,000,000,000 | 24,000 | 60 | |
| 6 |  China | 3,000,000,000,000 | 2,220.57 | 37.5 | |
| 7 |  Netherlands | 2,655,489,600,000 | 226,503 | 344 | |
| 8 |  Luxembourg[note 1] | 2,643,000,000,000 | 3,696,467 | 3,443 | |
| 9 |  Italy | 2,460,000,000,000 | 36,841 | 108 | |
| 10 |  Spain | 2,290,000,000,000 | 52,045 | 167 |
To make my point more clear i will give another list for the second aspect of my reference frame i.e development So following is the list of top 10 developed countries by Human development Index.
|
Rank
|
Country
|
||
|
1
|
|
||
|
2
|
|
||
|
3
|
|
||
|
4
|
|
||
|
5
|
|
||
|
6
|
|
||
|
7
|
|
||
|
7
|
|
||
|
9
|
|
||
|
10
|
|
||
The idea behind this comparison must been clear to those who have in depth knowledge of economy. The point is if debt is the criteria to refute the development then how come the countries in above two lists are in both the lists simultaneously on more or less the same ranking it is impossible by the logic of AAP leader Arvind Kejriwal because according to him there is no development in Gujraat as there is so much debt on Gujraat so according to him there is absolutely no development in USA or UK or JAPAN for that reason ................................... but unfortunately(for AAP supporters) Arvind Kejriwal is not an authority on this issue( thanks to God).
However it does not means that debt is a guarantee of development, no not at all. But we need to understand that money when invested properly gives profit and it doesn't matter if it's your or its a loan and if you can make enough profit to pay back the interest and debt by using it wisely debt will no longer be a liability it will become a tool to expand the operational capability of the organization as we have seen in the new liberalized economy.
Gujraat to it's credit have devised a brilliant development model by improvising on an already tested model over the years which is way much better than its western counterparts............................................................ SO DON'T FALL PREY TO FALSE PROPAGANDA LOOK FOR THE TRUTH YOUR SELF.
In the End I thank you all for reading my views and I invite every one to kindly give your opinion and feed backs. I would appreciate a logical and fact based criticism. I believe in learning from everyone so help me with my learning. JAI HIND
No comments:
Post a Comment