My friend needs yet another loan!!!

My friend needs an advice. Actually he has taken a lot of loan and there are lots of members in his family. His income is not sufficient to run the family expenses and hence he has to take loans. Even to repay his installments, he has to take fresh loans. The principal and interest are both increasing and he his taking fresh loans to repay the earlier ones. This is a vicious circle my friend is in.

You must be guessing who this friend of mine can be. He is known to everyone of us. Yes, it is the GOVERNMENT of India.

This union budget clearly shows how much GoI cares about the members of its family. But is the loan money meant to be distributed like this. The revenue as per the budget is 600 thousand crores and we have spent much much more than this and for this the Govt. needs to take a fresh loan of 400 thousand crore which is almost 3 times what was in 2004.

Now lets see that where the money is spent. More than 75% of the expenses are dedicated to defense and subsidies, and the daily expenses of the functioning of the GoI. After all these, whatever little is left goes to the so called investment in development for which there is always a chaos, and which in the end is rendered unproductive.

Our defense expenses have grown by almost 50% in the last 5 years and is around 140 thousand crore which is 15 times more than the education budget. Why are we comparing ourselves to USA when it comes to the defense budget. Isn't it better to maintain good relations with our neighbours and hence drastically reduce this defense expense. Isn't it better to provide employment to people through different productive schemes rather than distributing rice and wheat free of cost as subsidies.

The govt. should quit the areas where it is not needed and hence try to reduce the expenses. It is taking loans and doing unwanted stuff as if it was its last day and it can take any amount of loan without even caring for repayment. If the situation continues to be like this, then the day is not far when the burden of principal and interest will increase so many folds that the government has to reduce the development rate and the inflation will increase to an extent that it will become very difficult for people like us to survive.