Review meeting held by BJP on economic front

Surrounded by constant shocks on economic front, the Modi government is going to start the discussion on ways to overcome from this bad impact. The finance minister Arun Jaitly is to hold a meeting with the higher officers of financial matter. There is going to be discussed the review of current economic situation and the remedies to accelerate the rate of development. However it was reported that the meeting was to be presided by PM Modi.

In the recent days the government has to face the constant blow of economic front. The opposition has stood responsible the decision of demonetization after declining the GDP 2.2 percent especially in first quarter. The government has been failed to generate 2 crore employments promise, the opposition said. The government is on target owing to rise in petrol and diesel price. There will be a discussion or brainstorm on the remedies to accelerate economic again after overcoming all these questions in this meeting.

The first quarter of this financial year resulted a shocking statistics to the government. The decline in GDP was recorded exactly 2.2 percent. The GDP of this FY in first quarter falls to 5.7 in comparing of 7.9 in this quarter. This opposition said it was an affect by the demonetization and said that Dr Manmohan Singh had warned during demonetization that the GDP would decline up to 2.2 percent which proved true. Congress has dubbed that the economic policy of Modi government failed.

The big question is here how the government may go ahead with the affirmative statistics because the general parliamentary election is to be held in 2019 and the government has 17 months remained.

The GDP growing rate declined constantly in 6th quarter. The economic review two had expressed in its prediction that this FY economic growth rate 7.5 percent would not be achievable. The industrial growth rate has also declined to its lowest in last 5 years. The impost is also facing many challenges. The current account loss in first quarter (April to June) has increased 2.4 percent or 14.3 billion Dollars. Exactly the trade loss growing has increase CAD.

During the election campaign mod had asserted to generate 2 crore employments every years, but this has proved damp squib so far. however the government had started the project make in India skill development program with exaggerating claim, but the employments generating statistics is not growing ahead of a few lakhs. When the skill development minister, Rajiv Pratap Rudy, was toppled from his post recently, the failure in achieving target was assumed cause behind it. This question may prove very tormenting for the pair of Modi-Shah emerging in the election turning.

As PM Modi had announced demonetision in November last year, he said that the black money stashed would surface or the money stashed in black cashbox would be scrap. Modi added that it was a few months difficulty and a shining India would emerge, but resulted what? RBI deposited more than its earlier money; namely, black and fake currencies were deposited in the economy. Moreover the government had promised to bring back the black money from abroad but the government has not achieved any big success.

The government had imposed GST on mid-night of 1st july in a ceremony, and accepted it as a tax revolution of post independent  india. the 3 months are going to be completed, but the business men are still to be registered with this system.Mr Subramaniam Swami, well known economist and MP, posing question over it says: how to file GST, what is its system -- all have created an atmosphere of lawlessness.

the statistics of the effect over business is to be shown. if it is negative, it may create a problem to the government.

The rising prices of petrol and diesel are growing difficulty to the Modi government. The government had implemented dynamic price system quoting that the slashing in price would benefit immediately to the public, but since last 3 months the rate of petrol raised up to 7 Rs, the benefit is a mirage. The public on social media are in grudge. the people queried why did not bring it in the range of GST.

Dharmendra Pradhan, petroleum minister, clarified about it and saved the dynamic system. the reason behind this system  is questionable because the oil price in world market was 107 dollars per barrel in 2014, the rate of petrol and diesel in delhi was respectively Rs 71.41 and Rs 60 per litre. Now the rate in world market 54 dollars per barel, the rate of petrol price is Rs 70.39 in Delhi today and the price of diesel is Rs 58.74/litre.