INTRODUCTION“Money is the god of world’s leading religion” -Ambrose Bierce
In accordance to the above words, Money rules the whole world. It plays an essential role in determining the quality of all our lives. Undoubtedly, Finance determines the growth and development of not only individuals but even of a whole nation. Unfortunately, nowadays the whole world is witnessing a steep decline in financial sector. This essay aims to analyze the various financial issues, its causes and effects. It is also aimed at discussing a few strategies suggested to improve our economy.
ISSUES IN THE CURRENT SCENARIO“Lack of money is the root of all evil” -Mark Twain
In accordance to the above saying, despite enjoying the freedom for 65 years, a considerable amount of the Indian population still struggles under poverty. Inflation is still continuing to rise to the peak. A few major issues in the present scenario are listed below
- Continuous price rise of essential commodities
- Rupee Depreciation
- Unsteady growth of the Indian Economy
- Currency Devaluation
- High Fiscal Deficit
- Drop in investments
It can be very well seen that the major reason for all the above problems is that the value of money has not been retained.
CAUSES FOR THE PRESENT FINANCIAL ISSUES
The causes for the present economic issues can be attributed as follows
- Unchecked Growth of Black Money
- Rampant Corruption
- Large scale Tax Evasion
- Unnecessary Subsidies and Freebies
- Investment of money in unproductive activities
- Prevalence of black markets and hoarding
- Crimes such as Money Laundering, Smuggling etc.
Unchecked Growth of Black Money
It is very unfortunate that India tends to remain a major hub of black money. Many politicians, industrialists and bureaucrats have invested black money in Swiss banks. From this fact, it is evident that India is not a poor nation. It is clear that all its riches have been hidden by a few criminals.
Corruption tends to be the major headache ailing our country’s economy for a long time. Many of the corrupt officials and politicians demand bribe for performing their duties. Public being indifferent have started to accept bribery and corruption as a part of life. Nowadays none fears to accept bribe or restrain from giving bribe.
Large Scale Tax Evasion
Tax evasion is another major cause for the financial issues of our country. All those who avoid paying taxes thereby doing tax evasion should be considered as traitors betraying our country.
Large scale tax evasion leads to serious issues such as price rise and inflation.
Subsidies and Freebies
On one hand, unnecessary subsidies and freebies contribute to financial issues. Policies have to be framed to rein in grant of less important subsidies.
Investment of public money in unproductive activities
Public money is wasted by several politicians for various unproductive activities. These politicians spend the money of public for their own publicity by constructing several statues, buildings etc.
Prevalence of Black Markets
Owing to the greedy nature of a few people, the black markets prevail and becomes a major cause for financial issues. Mafias and greedy industrialists are involved in hoarding which is also a major reason for price hike.
Crimes such as Money Laundering, Smuggling etc.
Money Laundering involves concealing the source of money obtained by illicit means. This is done in large scale by criminals involved in illegal activities. Smuggling involves illegal transfer of goods which also leads to loss of money for the government
EFFECTS OF THE ISSUES
The direct and indirect effects of the above issues are listed below
- Obstacles in economic growth
- Less investment in infrastructure development
- Increased debts(for both individuals and nation)
To realize our dream of becoming a financial superpower within 2020, the above said problems must be solved. Though it will take some time to solve them, it is definitely possible to eradicate the above issues. It all depends on our hands. So let us implement the following strategies to solve the above issues and make our nation stand with utmost pride among all other nations.
Actions To Be Taken By The Government
The following are the actions to be taken by the government to reduce the loss of value of money.
- Promotion of exports with incentives
- Considering retrospective tax amendments
- Bringing down the lending rates which will give push to housing sector which will in turn kick start 165 industries.
- Non-essential items imports be restricted to stabilize rupee.
- Taking essential steps to bring out all black money
- Serious actions on corrupt officials and politicians
- Stringent laws to be framed against bribery
- Severe punishments to be granted for tax evaders
- Grant of subsidies only for essential commodities
- Strict measures to be taken against hoarders and black marketers
- Severe laws against criminals performing finance related crimes such as money laundering
- Amendments in law which enables to strictly enforce punishments against all finance related criminals
- Formulating stronger financial policies
Actions To Be Taken By Youth and All Individuals
“Youth are the pillars of a nation”
In accordance to the above saying, youth have a responsible and creative role in shaping the destiny of a nation. They have to adopt the following possible measures in all possible ways to retain the value of money.
- Denying to offer bribes to officers
- Paying the taxes properly
- Youth should make the head of the states to realize that they should adopt stronger financial policies
“Dream, dream, dream, dream
Let the young minds blossom full of dreams because
It is the dreams which are transformed into thoughts
It is the thoughts which are transformed into actions.
It is the actions which transform the future
It all begins with a single dream”
-Dr.A.P.J. Abdul Kalam
In accordance to the above words, many of us have a dream of making our economy as a stronger one. This essay is an eye-opener to all of us, reminding us about our dreams, duties and responsibilities towards our country. As the responsible citizens of our nation, we have to keep in mind the points discussed above for the benefit of the entire nation. Let us join hands together to make our dream of sustainable economy a reality.
By: Meenakshi Devi