Gujarat a state of Myth !

Gujarat may have been believed as a role model for it development model and more emphasizingly also for its good governance as repeatedly stated by its CM Mr.Modi.

But here are some truely and deeply analayzed facts on how Modi's so called and eternally believed "Good Governance" is not helping Gujarat really attain "GROWTH".

Comptoller and Auditor General of India(CAG) its recent report alarmed that "Gujarat has a net borrowing of 15,083 crore to fund the fiscal defecit of 11,027 crores in the year 2012".The state has an increase of 41% of market borrowing(loan)compared to the previous year for deficit financing, which wud increase the interest burden hugely on the forthcoming years.

On this fact it is now becoming a story of unsustainable debt due to increase on interest payment and debt servicing.So whatnaturally happens is they try to meet out this expenditure(debt servicing) by disturbing the developmental expediture.There is a huge amount of decline in development expenditure in Gujarat in the past decade infact in most areas even below the combined states average!

It can be justified by Facts below.

1.2nd position from bottom among the states is where Gujarat stands on its overall HEALTH expenditure on a share of total expenditure
it is lower than national all states average of 2005-2010.Even with comparable economic growth states like Tamil Nadu and
maharashtra it stands behind !

2.The spending on EDUCATION as a propotion of GSDP(states GDP) in gujarat is falling at higher rates and is below the average combined
states level.It should defenitley stand above 12th place as a whole.

3.Income from AGRICULTRE has fallen by 50 percent from 1993 to 2010.Decline in agricultural employement by 7 percent.Now this loss in income is bieng nullified by the state's Neoliberal policies and the encouragement by the Services sector which now contributes 48% of the state's growth.

This sector has given employement to the Urban people and tremendrous growth of casual worlers but has bulldozed the employements and income of the rural population in an overwhelming agrarian society.
The damage is surely on the larger part.

4.The propotion of interest and debt servicing to the developmental expenditure is rapidly increasing and it stood 27% above the average of all states combined.Which mainly lead to the decrease in development expenditure thenafter.

So carefully analyzing all the four points discussed above are the points which are primarly indexed in measuring theINCLUSIVE GROWTH of a state.The state mostly falls below the combined states average on its developmental expenditure,whichclearly is an indication on its vision and extent of commitment to inclusive growth.

In short Gujarat’s burden of  interest payment and debt servicing in the recent years has lead to the huge decline in its share of  Developmental Expenditure, which in term has resulted in declining social commitment and poor performance of the state in social indicators. 

When there is no commitment to INCLUSIVE GROWTH (going factually) and with high debt/interest servicing how can the administration  be called as a model of "Good Governance".

Mr.Modi's Gujarat is a state committed towards the growth trajectory of neoliberalism!! which may strive for GROWTH, but the real and needed should be INCLUSIVE.

INCLUSIVE GROWTH is what the people of INDIA need!!! not mere GROWTH which may seriously lead to an increased gap between
rich and poor !

National Food Securty Bill - India's utmost need.

The fiscal spending on "National Food Security Bill" may be under debate for many critics on its feasiblity when india
is undergoing a lull in its fiscal status.But here are some facts which could seriously question the critics.

1.India stands first by undernourishing 38 percent of the world's stunted children, which is a whopping figure already.
If a country is to implement the social protection scheme with utmost priority, India will be the forerunner and interestingly
even before NIGERIA which stands Second in the list.
2.India spends only 0.9 % of its GDP on social protection as of now.If NFSB is taken into account then it would add up
to 1.25 % of GDP( MNREGA contributing to the major share rather than any food security scheme)
3.The Asia Development bank has released a report on social protection and compares india with lower middle income states.
The Lower income states spend an average of 3.4 % of GDP on social protection.India spends not even a mere half relatively.
4.Upper middle income states of Asia spends an average of 4% and High income states spend an average of 10.2 %.
5.Japan spends a whooping 19.2 % and china 5.4 % of thier GDPs in social protection.Singapore infact spends more
than double of what india Spends.

Most of the Asian countries which have very less index of malnutritioned children are spending more than double of what india is spending
National Food Securiity Bill is atmost need for the ailing INDIA and more importantly implemeting this scheme will note eat away anything fiscally and infact
it would still remain below standards  relatively and also with the prevailing social situtation in INDIA.

Foreign direct investment