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Finance Management | "Santa's Stimulus Package for the Indian Economy"

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Santa's Stimulus Package for the Indian Economy
(A Point of View on the Current Market Turmoil)

- by Sanjeev Kumar *

Previous

Page - 2

Where should the Government spend the tax-payers' money?

Smart Investments With Long-Term Focus: These are essential investments that will create more jobs, provide boost to domestic companies, and keep the growth engine running by insulating the Indian economy from global economic slowdown.

Homeland Security: The Government should spend at least US $ 3 Billion over the next 24-36 months on modernizing the entire police force across the country. This investment is badly needed.

Benefits: Not limited to the following: -

  • The police force will be better prepared to deal with any eventualities.

  • Domestic companies will benefit directly and indirectly from the supply-orders.

  • Companies benefiting from the supply-orders will provide more revenues to the State Government and Central Government Budget in the form of tax (various taxes), etc.

  • A functioning and efficient police force will not only secure the trust of the society but also bring the crime down which will benefit the country in the long run.

  • Provide more employment across the country.

    Infrastructure: The Government should spend at least US $ 20 Billion on infrastructure over the next 24-36 months. The money should be spent on ready-to-go projects.

    Benefits: Not limited to the following: -

  • Create immediate long term jobs.

  • Stimulate the construction and manufacturing sectors.

  • Provide more revenues to the treasury by the way of taxes.

  • An investment will generate long term revenues for the Government.

  • Tangible assets that the Government could sell, if required.

  • Good and efficient infrastructure will directly and indirectly benefit the companies as well as individuals.

    R&D: ISRO is a prime example of India's R&D potential. The Government should spend at least US $ 5 Billion on high-end research over a period of 24-36 months.

    Next


    Sanjeev Kumar is Chief Executive Officer of Delamore & Owl Group of Companies (Website: www.delamoregroup.com), Toronto, Ontario, Canada. He holds dual Master's Degrees - one in Business Administration and another in International Finance. He has been the recipient of the "Southeast Asia Young Achiever's Award" for Year 2002.
    Article posted on December 28, 2008.


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