| Topic : India Budget 2010 |
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Activity:
14 comments
1087 views
last activity : 07 06 2010 20:18:04 +0000
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Dear Hon. Finance Minister, To take on the massive task of nation building the budgetary provision shall be at least 10 times of what has been in the past year. Government need to quickly find ways and means to generate the massive wealth required for this.
Disinvestment of government owned business and service industries are generally being advocated as the most pertinent method. Definitely, these will help to some extent, though it has its attendant repercussion in the socio-economic front. Handing over the PSUs enblock to private sectors to a great extent will eventually end up in amassing wealth by the private industrial houses; only a small portion of it is likely to be pumped back into the projects needed for nation's growth.
What I would suggest is a diametrically opposite proposal. In every major private company of over 1000 crore capital outlay in India, Government should have a 10 % stake in the company by way of owning its share bought at the face value of share price. In other words, the companies should exclusively allocate 10% of the shares to Government at face value, which the government shall keep as it's stake in the company and can even do trading beyond this 10% holding at market price to take advantage of the appreciation in the share price. The annual profit generated from these share holdings can contribute to a great extent to the national budget needs and help to keep the deficit low.
Abraham Paul, e-mail: papaul@hotmail.com

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"The Bitter Pills for India Reprieve" I wrote this in this community in toosteps.com few years back. The article is available in two parts in the following links in wordpress.com http://wp.me/p1ZsI2-1O http://wp.me/p1ZsI2-1S |
100% FDI should be welcome but only in Infrastructure and manufacturing sectors. |
100% FDI should be welcome but only in Infrastructure and manufacturing sectors. |