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MPs should be paid more
Many MPs do not deserve any increase in their pay or allowances
because they are undisciplined and frequently disrupt parliamentary
proceedings. Besides, some MPs have a criminal background. However,
it is also true that most of them lead honest lives and deserve
to get better pay and allowances, so that they do not fall prey
to corrupt practices. In accordance with the legal principle
‘it is better that 10 guilty persons are let free rather than
one innocent person be hanged’, the majority should not suffer
merely because of the existence of a few black sheep within
their fraternity.
However, there should be a reasonable addition to the taxable
income of MPs on account of personal perquisites. It is hoped
that MPs do their best to improve their image, give a more disciplined
performance, and utilise their Rs 2 crore constituency allowance
properly.
-- R N Lakhotia, New Delhi
Dire straits
The RBI report mentioning an estimated GDP growth of 5.2 per
cent in the year 2000-01, is an indicator of the performance
of the government in general and the finance ministry in particular.
There is no hope of a 8 per cent annual growth rate as envisaged
in the 10th plan. This is not due to world recession, which
is a standard epithet of Mr Yashwant Sinha, but is entirely
due to the bungling of politicians, officials, businessmen,
stock and share brokers, the UTI scam, non-recovery of dues
to banks etc.
When the Harshad Mehta scam took place in 1992, the Joint Parliamentary
Committee made certain recommendations for preventing such scams.
Since these recommendations were not implemented, the Ketan
Parekh scam took place. Similarly, the UTI scam also took place
and money went into wrong pockets. It is mentioned in the report
that gross domestic savings have improved. This is ridiculous
as the interest on bank and post office deposits has been reduced.
Only black money may have been deposited. These things indicate
that a serious fiscal deficit is in the making and a heavy burden
will be imposed on the citizens in the next budget. On top of
this miserable state of affairs in governance, MPs have cheated
the electorate and selfishly accepted a three-fold increase
in their remuneration.
-- B S Ganesh, On e-mail
Financial truth
The turmoil on the stock markets (which started in 1992 when
Rs 10,200 crore vanished and remained untraced) and the convulsions
in 2000 and 2001, have brought home some old financial truths.
Among the various lessons learnt, not only in India but globally,
five truths stand out : That profits still matter; financing
is something to be coveted, and earned; recession can still
happen; the old economy isn’t dead and diversification remains
crucial.
The invention of infotech ruled the West for a while and now
it’s no longer booming. But infotech won’t die out. It will
resurge. That said, the brick and mortar industries still have
a lot of life left in them. Those who ignore these old financial
truths, do so at their peril.
-- B T Dastur, Mumbai
Clarification
The chart “Sources of Growth” carried along with an extract
from the RBI’s Annual Report, 2000-01 on the News & Analysis
page (FE, August 31) inadvertantly referred to Capital Stock
as Capital Market. The error is regretted.
— Editor |
