Power of purchase
The article on India becoming Viswaguru of economics is utterly based on class ideology. Econonic development is measured by various factors like industrial development, export, peoples’ spending power, etc,. Industrial growth depends on market demand, which again depends on the purchasing capacity of the people. Purchasing power is directly related to the earning of labour force.
Keynes recommended government spending, which successfully saved many nations’ economy sinking during the Great Depression. Production and competitiveness can survive only when labour force is enabled to spend and keep the market vibrant enough.
Any attempt to shift the focus from labour component will lead to recession. The role of MGREGA scheme in sustaining rural demand is a living example. Growing economic disparity has potential to land in social crisis, which we should keep in mind.
This refers to the Editorial ‘Financial inclusion 2.0’ (November 14). Even though the financial inclusion index has risen to 60.1 in March 2023, those in the rural and remote places are still ignorant about the vital details of the loans that are aggressively marketed by the NBFCs and the fintech. It is crucial to regulate these entities to prevent them from misselling the products, especially in the ruralhinterland. The villagers’ indigent financial literacy level and their pressing need for funds are taken for granted and thus they are being exploited by many financial entities.
While marketing the loan products the NBFCs and the fintech must make the borrowers familiar with the interest rate and other covenants connected to the loan. NBFCs must be made responsible for the banking activities being carried out by the fintech attached to them.
Apropos “How the Kole paddy field owners of Cherpu keep the bird menace at bay”(November 14). This menace is not confined to paddy, but also to several vegetable growing areas.
One innovative, yet cost effective method to keep birds at bay is to tightly tie discarded audio magnetic tapes between two poles at waist height at different locations, which vibrates and emits sound that human ears cannot hear, but they do scare away the birds.
Also hanging discarded CDs loosely helps scare birds and wild boars away. This is tested successfully in paddy and vegetable growing regions, although availability of audio tapes in the digital age is the issue!
Halekere Village (Karnataka)
CAG’s vital role
Apropos ‘Demystifying the CAG’ (November 14), the Comptroller and Auditor General of India is the constitutional authority to audit accounts of the Union and State Governments and their entities.
The institution plays a pivotal role is assuring that public funds are used diligently for the intended purposes. It is also vital in promoting accountability, transparency and good governance by auditing expenditure on Social Welfare schemes. The inclusive and principle based audits of the CAG on Government accounts ensures good governance and responsible stewardship of public funds.