Virtue or Vice

My father has got this habit of saving every penny that he can, and he can go to any trouble to do this. He often goes to the ‘Mandi’ to buy vegetables that cost a trifle less there, than in the nearby market. He is now nearing 70 and despite our best efforts at dissuading him from doing so, he does not listen to us, and insists on doing things in his own way .At a time when we would like him to enjoy the conveniences of life, and lead a life devoid of stress, he takes a lot of stress and frets over small matters. A telephone bill kept at a place other than the one designated by him could lead to loss of temper. Despite our best efforts at changing him, he doesn’t seem to bother. Unnecessarily worrying about things over which he has no control, and which do not really matter has led to his suffering a mild neurological disorder for almost an year now.

On thinking deeper about his habit of being too cautious with money, and also of having an obsessive compulsive disorder about minor issues, I realised that this was  a virtue once upon a time, when our family income was not too much. In my heart of heart I thank God for this habit of his, which led to me getting the best of education, and other things that the family needed. But why is it that now when money is not too much of a problem, that this virtue seems a vice to me? I think I need to be patient with him, just like he must have been when I was a small child. When I look into his once bright, but now almost sleepy eyes, I wonder at the ways of the almighty...  

Revenue Deficit

While the Fiscal deficit ratio is hopefully slated to come down in the years to come, what is worrisome is that the Revenue Deficit is on the rise. As per the reports appearing in the newspapers, this ratio has gone up from about 42% in 2007-08 to 73 % now. For starters, the ratio signifies the amount of money that is used for consumption out of the total govt borrowing. 
Borrowing for investing is a good thing, but when you start borrowing to consume, it really is a cause for worry. What is true at a personal level is also correct at the national level. With this ratio at 73%, it means that only Rs 27 is invested out of 100 that the govt borrows. Considering the cost of capital to be 8%, the govt would need a return of at least 30 % on the Rs 27  invested to just meet the interest liability. That kind of a return is even beyond the private sector, and is just not within the reach of the Govt. So the short point is that, it is the revenue deficit that is a better indicator of a nation’s finance than the fiscal deficit. Do not cheer too much at the proposed finance bill. It is always a good habit to go in depth and read the fine print.

National Shame

Ever since we unshackled the Hindu rate of growth, we have been continuously growing at an average rate of growth of about 7-8%, which leads to our GDP doubling every 10 years or so. By purely looking at the statistics you could easily fool yourself into believing that we have arrived...truly. But you just have to go to a railway station anywhere in the country to gauge the actual progress. The squalor and utter poverty will stare you so hard in the face, that if you are a thinking man like me, the sight would continue to haunt you for many days. 

Every time I go to a railway station, the socialist in me thinks as to why there can’t be equality, the communist in me wonders as to why there is no ‘survival of the fittest’, the humble intellectual in me reflects as to why this nation of 100 Crores is not able to find  a solution to this blot on our great country, the economist in me worries, that we would continue to be a developing country for another 100 years, and the pragmatist in me coaxes me to move on regardless of all this, or just poke my nose deeper in the book that I am reading sitting here, and thus hide from reality. But no, that is not what I intend doing today. Let me apply myself a little, and see if a method could be applied to this madness around us. First the causes...Most of the reasons are well known, and those that come to my mind are listed here for easy application of thought for finding a solution:

• Our population is too much
• The literacy levels are too low. Even the educated people do not give a thought before littering.
• The country is dispersed geographically, and people need to travel overnight, unlike in most of the European countries.
• The number of trains are too few, and are not able to meet the demand leading to overcrowding.
• The number of trains are too many, when you think about the supporting infrastructure.
• Indians, even the best of us, have poor hygiene habits.
• Lack of automation in toilets,  and at the stations.
• Poor work ethics of the people who are responsible for the cleanliness of the trains and stations.
• Lack of accountability,  and discipline- enforcing mechanism.  

Now the proposed solution...

• Increase the number of trains,  but before doing that improve the supporting infrastructure of rails, stations, manpower et al.
• Do not issue more tickets than the seating/berth capacity of the train.
• Have adequate dedicated cleaning staff and supervisors on board the trains to keep the bogies clean.
• Have cleaning staff at the railway station round the clock. If it is possible to have them on the airports,  then why not at the stations?
• Subsidise air travel for the masses. Some of the subsidy that is presently given towards coal and fuel could be used for this. This would give an impetus to the airlines as well, and reduce the pressure on long distance trains.
• Institute and implement heavy fines. Deterrence will work for sure.
• Do not allow beggars within the precincts of the station, and on the trains
• Conduct a public awareness campaign regularly.Lay lot of emphasis on the children as it is there that the future is.

I am fully aware that what I have suggested is a tall order. But I feel that is about time that we did something about this national shame. Please give the issue a thought and suggest something.