Accountablility by Government bodies
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Activity:
8 comments
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last activity : 03 22 2011 17:37:42 +0000
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What is our Planing Commission up with. Take for example the import of crude. We import close to 13.5 billion dollars wiorth of crude every year. The first gear transit of private cars and other automobiles wastes fuel in such a way that we can deduct close to 6 billion to 7 billion from this imports. Suppose if we take the lower figure of 6bn, the net present value as calculate below, is, taking 6% as opportunity cost that is returns that can be earned investing the present investment elsewhere or competing projects,
6/(1+0.06)+6/(1.06)^2+6/(1+0.06)^3+6/(1+0.06)^4+6/(1+0,06)5=25.274 billion dollars.
So this much of money can be spent at the present state to scientifically improve road facilities or provide Volvo local transit such that these import bills can be reduced. We don't do it, and I believe the Planning Commission as suspected lacks professionalism or tools do their job daily.
The other variables they seem to lack is meaning of 'externality', 'leakages' in way of high indirect taxes and so on and so forth. So Planning Commission seem to be in need of reformulating their work norms to fulfill the growing and expanding nature of Indian economy to keep up with the professional tools.

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