Government Pumping Money into the Economy is not the Solution for our Economic Problems


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Neeraj said: (Aug 24, 2017)  
Hi Guys.

As we all know that India is an agricultural country where maximum people depend on its irrigation so it is clear that how many earning resources are available for the people for their livelihood where there they are not able to even to grow their crops properly because of poor technology provided by the government. Farmers are not able to utilize government's utilities because of poor management which is being taken place under corruption we can say that government is giving money buy not in proper manners that are why problems are not getting short out pumping the money. And the same thing is happening with the education sector which is also under corruption so because of different-2 kinds of corruptions money is not able to utilize properly in all the sectors.

So over all, I'd say that only giving money is not enough to develop the country there is need of proper management so that money can be utilized properly for the nation.

Thanks.

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Priya said: (Aug 3, 2017)  
I believe that being a human being if we get an easy solution for any problem we do not grow. Same is the case with a nation. If government pumps money into the economy it gives an easy solution for dealing with the economic problem and in that way, India will never grow. We have to pay attention to issues such as education for all, introduce technology to rural areas etc.

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Anamika said: (Jun 24, 2017)  
Hello friends,

Yes, I do completely agree that pumping money in the economy is not the solution for economic problems. It is important to come up with feasible schemes and make its proper execution. Merely allocating money won't be enough. It is important to make sure that the money is being applied at the right place and that its benefits are reaching the poor, decreasing the gap between rich and poor and ensuring overall economic development. We all know the drawbacks of Planning commissions. States were imposed with certain plans and allocated an amount to achieve that plan within a time period. Did that work? No, ultimately, Our honorable PM Narendra Modi had to replace it with NITI Aayog. Here states are given equal chance of participation in economic development which helps them achieve these gooals more effficiently. Also there are certain schemes launched by the govt that fails to implement, main reason being the mere allocation of funds are considered sufficient. In conclusion I would say, Pupming money money into the economy doesnt insure economic development. Thank you.

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Nipun Bansal said: (Sep 24, 2016)  
The best method is to improve the economy is first to improve ourself, our thought nd then improved our atmosphere who are current day by day. The economy problem is created by ourselves. So when our thought are improved our economy are improved otherwise the money who are pumping in a various sector is wasted.

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Ravish Kumar said: (Sep 11, 2016)  
Hello, friends. According to my scenario only putting the money is not the solution to improve our economy. Indian economy is based on agricultural and education so government should invest their money in these 2 fields. One important thing is that first, we should change our self in the field of corruptions. It is the wall which resists our economy. I don't have any questions regarding government policy to give the money in each field but it is not spent in a specific field. So I would like to request you people that don't take the money as a bribe and never give the money as a bribe. If it happens then our economy would definitely growth.

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Harsh said: (Sep 1, 2016)  
Hello everyone,

It is true that pumping money will not solve our economic problem because there is a lot of corruption due to which the money can't reach the right place. So we need to focus on corruption and priority should be to use the minimum amount of money and should use it in the right place instead of wasting it by giving it in the hands of corrupt people. There is a need of regular check on the flow of money so that there should be no leakage in form of corruption so money is not everything we need to work in the right direction for achieving a developed economy.

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Chalachew Birhanu said: (Aug 22, 2016)  
Yes, according to Ethiopian economy simply adding money to the economy is not a solution to the economy of the country rather it is better to use other menses for the solution of the economy like creating other systems for collecting money to the bank circulate it and create job opportunity to the peoples of the country. Since in Ethiopia there is no man power shortage so pumping money into the country is not the solution.

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Ravi said: (Aug 4, 2016)  
There is no meaning of putting money into the economic sector until we do not have a corruption free government as we heard and read on the daily basis that govt will put this new programs in a city and that much amount in that sector but all these words are just has the meaning in dictionary but not in the real world so if we really want to develop our nation than we have to improve our education system first and import rate should be shrunk as much as possible and put effort in generating the resources more and more in our country and this will ultimately increase our export rate which improves economic status of our country.

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Mansi said: (Jul 5, 2016)  
It is not the solution for our all economic problems. To pump money onto our economy government Firstly should build up a strong base for the upliftment of our economy. Because pumping money into our economy unnecessarily increases our fiscal deficit, and as Indian govt is corrupted it also adds in the pockets of our highly respectable ministers. Govt should take strict actions 2 combat with corruption in order to improve the current situation of our country where poor are getting poorer, and riches are getting more rich.

I think if govt literally wanted to invest money, it should invest it in education, and health care. These 2 are the very imp. Aspects of the country's growth.

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Samrat said: (Aug 26, 2014)  
As per my knowledge Indian economy lies in its agriculture and education. India is not an industrial country right? so whenever we are talking about economical problems we must be aware of the fact that the problem lies in educational and agricultural fields.

Now, pumping money can not solve the problem if the Govt is pumping in other sectors like health, urbanisation or industry, but it will definitely be helping if the govt invests in agricultural and educational fields. I am not saying that all of the money should be invested in these two fields, obviously industry needs an investment, but in a country where 40% people are daily wage earners industry and urbanisation has not much to do to solve economic problems.

Yes economical problem is the other name of poverty and money can solve the problem but it can be solved only when the Govt invests it in proper sectors, without govt investment nothing is gonna happen because Indian public is not going to invest on their own like a charity right? So its only the govt money who can solve the problem.

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Tappu said: (May 31, 2014)  
Hello, friends about the topic I would like to say that pumping money in the economy can be a solution to the economy but for that we need proper infrastructure and arrangement. And we have neither of them. Our govt is a corrupt govt and our lack of infrastructure make all the money to move to the politician's pocket. So, I suggest instead of pumping money our govt should try to increase our export by increasing quality and quantity of our agriculture.

For that reason good quality seeds should be supplied to farmers, farmers should be made educated so that they can learn the new scientific techniques of farming. We should industrialize our country, because to be a developed country we have to be developed in both the sector and that will reduce import and at the same time increase lot of job opportunities that will reduce the need for money pumping in the society.

In nutshell I want to say instead of pumping money to our economy directly through different schemes we should try to utilize the money for the for industrialization and agriculture development.

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Harish said: (Mar 14, 2014)  
Pumping of money in our country not doing in proper manner. We frequently listening some of government schemes and subsidies such as clearing loans this are not way spend money. Govt has to take steps to increase our production in agriculture. For that that govt has to take some responsibilities such as providing good quality seeds for farmer, by establishing more agricultural universities, govt will stop giving some subsides. Some govt schemes makes the peoples indolents. Try to increase production, with this exports will increase.

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Raunaq said: (Feb 9, 2014)  
Hi friends,

According to me pumping of money should be done only in the time of emergencies a country faces. If now for the reason of economic problems govt should take taxes and make policy for it but if pumping is done then before doing that a system for pipelining for it should be prepared and made available in public domain so that accumulation of wealth does not occur in the hands of few corrupt ministers.

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Kuntala Dutta said: (Jan 6, 2014)  
Pumping of Money in Economy means contribution or extra money and it is not the Solution for our Economic Problems. Because most part of the money goes to the politicians swish bank or into their pocket. In one article said if we will distribute the money of swish bank's of politician then every Indian will get 1 lakh. Recently one annashree yojana has come for poor people but what happened all money has gone to politicians bank. So instead of this way govt should think another way. They should provide some good scheme to the farmer since our 25% GDP is come from farmer only. They should make less tax pay scheme for the poor people.

Another solution is that the government should increase its export by increasing the production of the product to be export and should decrease the import by producing those products in the India.

So, according to my thinking, pumping of the money is not the only solution to the problems and instead of this, government should think of the other solutions.

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Naman Sreen said: (Dec 12, 2013)  
According to me government putting money into economy is not the solution of our economic problems. Government has to take steps to decrease it's budget deficit, putting more money into the economy will increase fiscal deficit. Currently Inflation, Current account deficit and debt to gdp ratio are main concerns, pumping money will increase all of them. Even if government pumps in money into the economy with various schemes like food bill or other bills, India does not possess the infrastructure to support these bills, so they are basically of no use. Even if these bills have a viable solution in them, the money raised for these bills is not used fully for the implementation of these bills but politicians use it to fill up their own pockets. Austerity measures have to be taken up by government to decrease further spending. This can be done by raising exports, decreasing imports through high tariffs and controlling the money flow by increasing CRR, Repo rate. Another step government should take to solve this problem is have investor friendly environment to increase the FDI inflow which will really help to improve our economies condition.

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Santhosh Kumar said: (Nov 30, 2013)  
Here pumping money is great though it will do in a proper way.

If they can't do it in proper way it will effect on our country economic growth.

Other factor is that politicians always try to fill their bank balance and their property, they do not think about common man.

Another thing is that corruption.

In our vast country country people need money not their security f his family is good don't bother about other families this is the way how Indians behavior.

In my view pumping money is do in proper way to avoid from bad thing.

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Subhash Sharma said: (Oct 29, 2013)  
Hello friends,

I think that pumping of money in a developing economy like India has its pros and cons.

(1) As govt needs to implement its present policies at ground level more strictly instead of thinking to invest more money. Because we all know that the some share of money invested by govt on various infrastructure project are going to the personal account of many politicians and officers. Which cause scams like 2G, CWG etc.

(2) Govt should encourage local and small entrepreneurs to increase exports and reduce current account deficit. Which increase foreign exchange and appreciates rupee.

(3) Govt should regulate its on-going programmers/policies within the specified period. In order to avoid any misapplication of funds allotted.

(4) on the other hand if govt pump money in economy it increases the employment, GDP and literacy rate.

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Prasad said: (Oct 23, 2013)  
Pumping of Money in Economy means contribution or extra money. Extra money comes from which sources: if RBI print new notes and pump in the market the result outcomes is huge inflation and the mismatch of Demand & supply. So that pumping money in the economy is not only a solution but searching new schemes like increase the production of crops, by increase the amount of export material and changing the interest rate, CRR and Repo rate government solve the problem of economy. Bye bye see you.

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Randhir said: (Oct 23, 2013)  
Pumping money by our Indian government is not in right way today Indian reached to such a position there every one even a child with worn are under a 25000 debt load and after that high price for food, house, and shelter so if really want to come out from this problem then we must aware of our economics our education system politician and our source of eligibility and take down all the problem below then India will com to the rich.

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Deeksha Saxena said: (Aug 26, 2013)  
Hello friends.

Here the question is whether the pumping money is the solution of the economic problem or not?

One question arise here is that from where this extra money to be pumped will come?

Definitely, as always happens in India, the poor people will get affected in getting this extra money and the result is they will get more poor.

If this happens then this idea of pumping money can not be the solution at all.

Yes, it can also be a solution if this extra money does not affect any one and the investment of this money should be at the right place. But, this is not so in India, because, more than half of the amount will go into the pocket of the politicians.

Also, it is not the only solution of the economic problems;

So, our government should think of the others solution that are: they should take care of the rural areas of the country,

Government should provide good facilities to the poor and also it should decrease the tax for the poor people.

Also, subsidies should be provided to the farmers.

Another solution is that the government should increase its export by increasing the production of the product to be export and should decrease the import by producing those products in the India.

So, according to my thinking, pumping of the money is not the only solution to the problems and instead of this, government should think of the other solutions.

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Sethu said: (Aug 10, 2013)  
One question which comes up on my mind is "where do we pump money from", borrow from a rich nation or release the black money abroad, what is going to be the solution. As everyone say rich get richer poor get poorer. Frequently heard words in India are poverty, corruption, bookies, match fixing, all these words have a sole reason money.

When countries abroad thinks of technology enhancement, We Indians proudly say we are on the verge of finding a technology which would detect corruption. So as an Indian I would say rather thinking of pumping money better solve the social issues which are directly the cause of economy depletion.

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Sambhav said: (Aug 10, 2013)  
Pumping of money in economy is not solution there are various solution which affects the economy like.

India should reduce import of crude oil. Indian government should develop e vehicles and implement subsidy on oil like gas cylinders if people want more oil than they should give more charges. India should increase export commodities. Indian government Should provide more jobs to youngster by open new business and provide more facilities that persons who are trying to implement new interpret new business. Indian government Should provide more facilities to farmers so they can produce more crops that helps growth of Indian economy.

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Shraddha said: (Jun 12, 2013)  
At present time when the value of rupee depleted to 59.99 rs per dollar and inflation rates are as high as 10% pumping of money in the economy is not a wise choice. Pumping of money in the economy simply means entry of extra money from outside in the economy and this can happen only if RBI print more currency notes and this simply will create inflation in the economy as more money is now circulated people can afford goods at more rate which in turn inspire producers to increase the rates of the product.

In any country this could be a good option to encourage producers upto a limit but in a diversified country like India where accumulation of money is in few hands it is really disaster as now poor people can not afford that commodity or service. So inspite of pumping money in govt should concentrate on extracting money from rich either by increasing taxes for high income zone and reducing from low income zone or by increasing duties on luxury commodities.

Moreover export should be increased in order to balance the deficits in trade and this can be done by decreasing the duties on export plus encouraging the production of export oriented goods. Also, the distribution of money in the economy should be balanced by providing the basic amenities in rural areas plus working on the educational system and economics reforms of various kinds such as FDI should be paid heed.

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Prakasam said: (May 9, 2013)  
Hai friends.

Our economy occur so many problems, but our economy have more current account deficit so our finance minister take more action to reduce the current account deficit so India raise to our cash inflow in foreign direct investment so this type of money use to pump our economy to lend more amount to all the sectors through the bank loan this is one of the best way but FDI only is not solution, otherwise government take quantitative easing that means print the new currency also undervalue the Indian currency already the value is going undervalue so don't take quantitative easing.

In this situation all the production is going down so pump money is not only solution also government and reserve bank of India take action to reduce the monetary policy that means reduce the interest rate this is good solution to reduce our economy problem. Also India have more corruption in all the sectors so reduce the corruption is good solution.

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Poonam said: (Apr 26, 2013)  
Hi Friends, I would like to present my views on this topic. Pumping money means contribution of extra money. Government putting more tax for society welfare. But due to this rich people are still reach but poor people and middle class people are becoming more and more poorer. Huge inflation is going to occur in our country. I Think government should make that type of policy which can extract money from rich people and poor and middle class people not going to be worse.

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Sharat Kumar Malick said: (Apr 17, 2013)  
Dear Friends,

Role of government in any economy should be welfare of citizens and development of economy. Macro economy deals with the developmental role of government. As a cloud collects water from the sea and distribute as rain in the agriculture fields. This leads to development and welfare. So shall be the role of government. To collect more tax from the rich and contribute to the welfare of masses.

But alas, this is not happening in true sense in India. Resulting rich are growing richer and poor are becoming poorer.

The role of government is important and merely by adding deficit in the budget to pump money in economy leads to inflation. The government should work more positive. It should provide money assistance to the needy (i.e in mass welfare projects) by taxing rich more and sparing poor.

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Karan Sharma said: (Mar 7, 2013)  
I agree that pumping money into the economy is not a perfect solution for our economic problems because money itself is a very big problem as rich people already have large amount of money so poor people also wish to get it. Problems are increasing day by day by the increase in prices and this will also affect on the wealth of poor and middle class persons. In my opinion the government should have to control prices and by implementing new and useful laws as to decrease the economical problem's. Money is not a solution of everything but the usage of money at the appropriate time may be proven very useful.

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Ravi said: (Jan 19, 2013)  
Pumping money is not at all a good solution.

If it is done then common people will get effected most. Because of uneven distribution of money in our country, Money will reach mainly to affluent people and never will reach to poor and needy people. Inflation is an another reason. High prices will again break the health of poor or middle class family.

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Deep said: (Dec 18, 2012)  
Pumping money into the economy actually doesn't solve the problem. As more and more money is being pumped, accumulation of money occurs in the society. It might be in the hands of some politically powerful people and it rarely finds the needy. Increase in money has another adverse effect too. When people have more money, their demands increase and they are willing to pay more than they would have actually payed for that before. So the sellers tend to increase the prices of commodities and services. In effect the increase in money didn't do its job.

An efficient method will be to analyse the different aspects of the economy and decide where ever the boost is needed. It requires qualified officials and dedicated politicians.

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Mohammad Najeeb said: (Nov 6, 2012)  
I will agree the government policy of investing the money into the economy, as it generates lot of employment opportunity to different section of people and more over when you spend some money on any purpose you will definitely have outcome also, it is up to you to decide how to spend the money and procedures to make it prosperous. At last this not the policy that makes advantage but procedure and strategy to implement it efficiently.

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Sravani said: (Oct 11, 2012)  
Pumping of money in economy indirectly speaks extra money. Extra money comes from people in rural areas. Because all the peoples of India are in rural areas. They spend their life on cultivating crops. So in that way our government encourage them like provide more quality subsidy and provide fertilizers for less cost. So we increase our growth.

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S.Bhavani said: (Sep 28, 2012)  
Hello friends.

Yes I will agree that govt pumping money in to the economy is not a solution for our country why because now our country facing more more economic problems. First our govt recognize the where the problem was occurred and rectify it for do this it should spend the money first after that it should monitored it.

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Manisharma said: (Sep 2, 2012)  
As my friends said, pumping money is not a solution of our economic problems. Whatever money government invest in our economy, only 30% of that reaches where it has been invested and remaning money gone to the pockets of our politicians. So there is a need to invest the money at the right place and correctly so that it can reach to the place where it can be used correctly. A seperate department should be erected to have an eye over the money government invest in diffrent fields only then it can help us to rise our economy.

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Vishal Jagtap said: (Jul 28, 2012)  
Hello Friends,

I would like to share my thoughts on this subject, First I would like to ask one question, What Govt need to pump money in economy, the answer is obviously because of less liquid cash in the market, now why this cash is not sufficient because our many politician people earned money from black business and they deposit money into outside the country like Swiss bank, and this is the main reason our govt now facing the problem of liquidity in cash, secondly now a days many people use plastic money instead of hard cash and that is also the reason like all hard cash money is hidden and no one can ready to spend it. So my conclusion on this topic is definitely pumping money into economy is not the solution but yes if our govt can concentrate on increasing new business and giving maximum job opportunity to the young crowed. INDIA is based on agricultural so yes 75% population is belong to village area and they are depend on farm and cattiness so govt has to launch some scheme or package which helps them and ultimately its effected to all nation.

That's all from my side, thanks you so much for giving me chance and please rectify me if I am wrong.

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Sasikumar G said: (Jul 20, 2012)  
As per my opinion pumping money is not the sole solution to the crisis in the economy. I have only short term effects and in turn it worsens the inflation. We require a long term strategy rather than thinking immediate effects. Other economic measures are to adopted along with pumping money in to the economy.

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Anand S said: (Jun 20, 2012)  
Government should spent money on certain areas and a board of members should be kept in place to monitor and track the progress. Govt can also get into public + private partnership in raising funds and providing basic sanitation for families below the poverty line.

In states like Tamil Nadu, Karnataka where IT, ITES, BPO has taken a new face, billions of Foreign Direct Investments [FDI] are flowing in. Govt, should redefine tax policies in other states so that more & more MNCs would set up the OPERATION bases in INDIA. Ex: Andhra has learned these technique and now the benefit AP State has got is Microsoft has invested billions of $ in setting up the largest Development center in Hyderabad outside which is the largest outside USA also FACEBOOK has its BASE in Hyderabad [only operational office in INDIA].

As IT/ITES/BPO are getting popular amount the youngsters now, families living in Rural villages are getting loans for their children to sent them to engineering colleges. Govt can share the burden of these poor farmer and reduce the interest rates of the education loans.

India needs to grow more in areas like sanitation, integrated sewage system, infra us and transport facilities. Airports, Ports, Bus stations should be upgrade with more facilities and easy access to major towns, cities. As we can see Market is not stable and also India's rupees against US dollar is around 55 rupees IMPORT & EXPORT will redefine the GDP growth of our economy, Govt needs to setup a special team to analyze and provide input to the Finance Ministry for stable GDP growth.

Being Agricultural Country in background, Govt should provide beneficial mass health policies to the rural families. Also Govt need to take steps against unemployment, If unemployment is killed, we could see smile on all the youngsters.

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Neha said: (Apr 16, 2012)  
As far as pumping of money in the economy is concerned , it should be done prudently & govt should observe money related problems very conciously it must be sorted out in a right way,not only by pumping in money in the economy.

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Swathi said: (Apr 10, 2012)  
According to me pumping money in economy is not at all a fine solution to the problem. Instead spending money in irrelevant areas it is necessary to put a maximum effort in making our India to be fast growing country all these will be possible only when government take appropriate actions spending money in beneficial areas like education, infrastructure, agriculture etc.

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Priya Dang said: (Apr 10, 2012)  
I don't agree with the view that government pumping in money is the only solution for economic problems. In country like India the main problem which the country is facing is the problem of illiteracy which is the biggest economic problem in our country. But government is not taking relevant steps to eradicate this problem. Just pumping money will not remove economic problems government should launch programs to make people aware of education and spend money in launching such programs which make people aware of importance of education.

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Unnati said: (Apr 7, 2012)  
We need a good governance to ensure that the money is being utilised properly. For a developing country like ours we need the government to pump money for various reasons like education, infrastructure, medical etc. But corruption is the major drawback of our country. There is a lot to be developed before we even come to par with countries like china, so we need the government to give this economy a boost but we also need stricter laws to ensure that the money is being fully utilized.

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Tanutanu said: (Mar 31, 2012)  
I completely agree with the point that pumping of money is required by the government in all the stressed sectors like:education, health, agriculture etc.
But, by just pumping in the money won't be a solution. The government has to make sure that the taxpayer's money which the gov is pumping in actually results in doing something good and does not add to the black money of the corrupt people.
The scams in nrega, aadarsh society are known to us and that is the reason we want to know how our money is being utilized.

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Sajid said: (Feb 27, 2012)  
Pumping money in economic is not solution there are various factor which affects our economy like. 1. Export & Import-India is main importer of crude oil and other various commodities and export is very less so we should think in export perspective of commodity. Government should deduce their subsidy on exporting to growing export. 2. Debt Market-every individual try to deposit their money in bank at risk free rate there only 10 % of population deposits their money in debt instrument if government should attract investor in debt market so our economy can boost. 3. To provide special facility for establish new entrepreneur's in country because its supports production and provide employment and deduct the import. 4. We should think in terms of education in village which can help to grow our economy. 5. Our country is mainly depend on agriculture so we should provide new technology to the farmers and provide subsidy in fertilizers and pesticides. These factor can grow our economy if we would think on that side. Pumping of Money in Economy means contribution or extra money. Extra money comes from which sources: if RBI print new notes and pump in the market the result outcomes is huge inflation and the mismatch of Demand & supply. So that pumping money in the economy is not only a solution but searching new scheems like increse the production of crops, by increse the amount of export material and changing the intrest rate, CRR and Repo rate government solve the problem of economy.

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Shikha said: (Feb 25, 2012)  
Yes it is the duty of our elected candidates to work for us. If the economy is in need then government should pump in money, but it also has to keep a check on it whether it's being used in the right direction and for said purpose.

1. With more than 60% of population which is =/>25yrs, our govt. Should develop employment oppurtunities even in these slow economic conditions.

2. When the whole euro zone is in deep economic trouble with its increasing debt our govt. Should invest in manufacturing sector as it will end up in giving us industries, employment & self reliance which will make us resistant to ups and down of the world economy like brazil. Moreover we will not create highly "qualified labourers" as services sector is booming.

3. More investment should be towards education & health care facilities. As a healthy mind rests in a healthy body and moreover "Padhega India tabhi to badhega India".

4. Bailout packages should be given to striving industries but it should not be that much frequently and easy. As it is THE TAXPAYERS MONEY so should be used but not misutilised.

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Akash Hp said: (Feb 8, 2012)  
Yes, Pumping money is essential but in some areas only. For an instance, There should be enough public transport system to promote public transport which would directly result in less fuel consumption by an individual. Other areas where pumping money is education, that too Quality education. Children should now be made to concentrate on practical ways of learning and should give up theoretical approach. Money should be invested in research of Machineries, agriculture, pharmaceuticals which would reduce our need to import such products and would directly save our valuable foreign currencies. Thus, I conclude that spending or pumping money should be in right direction.

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Nagapriya said: (Feb 7, 2012)  
Yes I agree with this topic. Government just pumping money to meet the needs doesn't solve a problem. It is the government responsibility that it provides the solution. For e. G the money alloted for repairing roads is not utilised properly. Instead they take a fewer steps and after a certain period they leave the roads in a nasty condition which increases traffic and inconvenience to society. Not only this, people should start how to increase exports.

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Jimut Rakshit said: (Jan 28, 2012)  
Yes, I am totaly agree with the statement that government pumping money in economy is not the actual solution, spending money is not the actual solution to get the hell out from the problems, the think is that whether you prperly utilized the money?or shall it utilized in proper sector?Though we are rising country, developing country, but we still far behind the developing economy like China, South korea, South africa, interms of our infrastructure, education, technology, rural India is as usual as it is. Let's take an example from economic India->India's shipping channels being too shallow, much of the containers destined for the country and carried by such large vessels have to be trans-shipped at ports in Colombo, Singapore or Dubai. Indian ports won't be able to handle the world's biggest cargo ships when they start sailing because facilities in this country aren't capable of handling the vessels or the volume of containers they carry. Our product is such inferior that our neighbour country even Bangladesh don't want to accept our product!so in what sense or which way government pumping their money?It's totaly a bullshit. Even many small scale & middle scale industry's are dying. So is that make any sense goverment pumping money in economy?Even company like kingfisher also suffered from 468 cr loos. The main problem with our economy & people is we only believe in Import from developed nation not in export. So we are far behind the foreign reserve surplus which is having with the country like Japan, Russia, China, South korea. Even our GDP which is US$3,892.752 which is expected to be in 2016 which is far behind country like Jamaica US$ 9,178.414. If goverment properly utilizing their money in manufacturing hub by properly utilizing our strength chief labour, which was exactly doing by our neighbour country China. Then only our country economical can be solved.

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Ankit Agarwala said: (Jan 4, 2012)  
Yes , I agree with the topic because its not the ultimate solution to this problem but only temporary which will have myriad side effects on our economy. But if the Govt encourages export, Invest in infra as well as harness more quality work force and educating the youth and illiterate will be a pragmatic decision as we know that 2/3 of our country is an agrarian economy.
So invest in an sector that fixes the root causes of our problems and see the GDP rate rising rapidly and eradicating poverty and corruption from its root and become a super power nation within a decade or so.

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Ranjit Basu said: (Dec 5, 2011)  
According to me pumping money will solve the monetary crisis for short term but adopting significant measures would be a better idea in long run.

Pumping money into the economy always had an adverse effect in form of increased taxes which in turn the people need to pay.

More over the Indian govt mostly rely on FII for infrastructural project and other development. So need to concentrate on attracting FDI and FII and prevent erosion of domestic treasury.

Since Indians have a peculiar habit of saving rather than spending the govt should find out new ways and means to attract these small funds towards the development of the society. One such way is mutual funds.

Apart from this if the government really wants to improve the economic condition of the society then it should have a proper focus on the usage of funds and the application of funds in respect to the activity.

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Pankaj said: (Nov 30, 2011)  
According to me government should pump money in the economy but in right direction we dont have proper infrastructure facilities, healthcare facilities, educational facilities,so how can we dream of a country with high growth rate and development. As previously said by one of the participant that government should keep track of the activities which it undertakes by pumping more money.

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Kavitha said: (Nov 2, 2011)  
Yes i agree with the statement. In most of the cases the money suplied by the government is misused by those who sit in authorities for their personal needs or they are not utilised properly in the areas of public interest. For instance how many roads are remaining unrepaired? adequate health care is not still extended to the poor parts of the country. What is actually happening..? the illiterate are mishandled.This is all the problem of governing bodies not all are targeted but most of them, who uses the public money to satisfy their unsatiable greed.

Indian economy is mainly agro based, so famers shoul be encouraged, by providing money and equipping them with the latest technologies, for this education has great role. Proper utilisation of land and wealth along with the involvement of skills and newr ideas if put togeter will help the nation's economy.., so simply pumping money is not a solution

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Sowmya Setty said: (Nov 2, 2011)  
Pumping in the money will not be a solution for the economic problem as because inflation and recession are major economic problems which arises either due to more money in the economy or lack of money in the economy where pumping in money will defiantly accumulate in few hands rather than spreading in the economy so either by sucking the money from the nee-sh people to avoid inflation ex which Rbi takes steps as increasing the oil price, alcohol and cigarates price etc. , and times of recession it take steps as decreasing the rates etc. ,

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Ms Khan said: (Oct 11, 2011)  
Yes definately I agree that pumping money in economy doesn't mean grow of economy. We all know that 70% of real India resides in villages. We always talk about the India which is signing in cities and we never give a thought to India which resides in villages. The basic infrastructure such as roads, water, hygieine, education, electiricity, is missing in real India. The foreign comnpanies which are investing in our country want to have a safer destination in cities thus the cities are signing. Because government care musch about the FDI rather than thinking about the common people. Unless or until the common people gains on economical front there will no real economical growth. The govt should create infrastructure in villages and towns so the foreign countries don't hesitiate in investing in town and villages. When the dollars will reach to the villages and towns and India that will be the real Indian economic growth.

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Neetu Singh Lambha said: (Oct 7, 2011)  
Yes definitely pumping of money can not solution of economic problems, if our govt really wants to help, improve or contributes in our economic than govt have to take some importance steps like, as we know that, Agriculture is the back bone of our country 73% people depends on agriculture so our govt should provide new technologies for farmers and it will really help to maintain the balance and make a strong back bone of our country because friends nothing can change but we can change to our self according to these things and result will be front of you. Thank you that is from my side.

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Mukesh Mk4 said: (Oct 1, 2011)  
I am not agree with the word pumping because the rising economy is paying back to the society and pumping is irreversible process. Its a kind of investment, for the profit in terms of facility, living standard, higher education, defense services etc. It maintains the liquidity of the market as well as market prices.

Picture a condition when govt has reduced the market investment then the bank interest rates will reach to sky. I think govt must maintain an economy level in order to bear the small economic fluctuations.

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Shruti Ajey said: (Sep 17, 2011)  
Pumping money into the economy by the govt is certainly not the solution because the money is hardly utilized for a noble cause. It seldom trickles down to the area where it is required and rather goes into the pockets of the bureaucrats. The solution lies in enlightening the people who are indirectly running the economy. There is dire need to educate them regarding the judicious and economic use of resources. India actually resides in its villages, so it is must to educate the villagers on how to multiply their money by investing in fixed deposits.

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Neha said: (Aug 3, 2011)  
Yes. I partially agree with d statement. Monetary investment is obviously must for growth and economic developmen. T govt needs to spend on weak sections of society to accelerate growth. But dats not sufficient. Simultenously care shud b taken the money invested at right locations nd properly spent for betterment. Nd consequently other prob of inflation nd mismatch of demand and supply shud to prevented. As excess supply of money vil lead to aggravation of othr problems nd nt serve d purpose so balance must be maintained.

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Shibli said: (Jul 13, 2011)  
Pumping money by goverment, yes it is the liability of the goverment, but it is not a ultimate solution for the economic crisis. It is like investing money in to a dying business. At the same time you pumping money to the crisis same time have to look for the cause of crisis and it has to be rectified.

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Sweety said: (Jul 1, 2011)  
Yes I partially agree with the topic "GOVT. PUMPING MONEY IS NOT THE SOLUTION FOR ECONOMIC PROBLEMS".

I don't say govt should not spend money on economic problems, it should but it should be in such a way that it is beneficial for all in great extent.

->Goverment should be able to find the economic problems and it should spend money on it and should see that problem is solved. I mean to say that govt should spend the money and also should monitor thatwhether the problem is solved or not.

->Government should spend the money in villages where there are no proper roads, no current facilities and help the children to make them study.

->Now a days many government hospitals are not provided with the necessary requirements. Government should spend money on them as it is very much required for poor people who don't have money for their treatment in private hospitals.

->Goverment should see that the most common economic problems like increse in petrol prices, commodities should be reduced.

->Government should provide ways to eradicate unemployment problem.

->By doing this, There is no doubt that our country will become a developed country.

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Sukesh Kumar said: (Jun 13, 2011)  
Yes, pumping money is the economics not the solution of the econics.

Rate this: +4 -37


Pinki Shaw said: (May 25, 2011)  
To my mind pumping money into the economy is not the solution for our economic problems. Today there are so many economic problems in our country like increase in prices of oil, food, increase in imports, unemployment problems, increase in inflation rate. If more money are supplied in the economy it will make condition worse rather than solving it. Government Should adopt adequate measures to solve economic problems rather printing new notes and increase the supply to create this balance between supply and demand.

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Pawan said: (Mar 5, 2011)  
Yes my dear friend said correctly pumping money in economic is not solution there are various factor which affects our economy like.

1. Export & Import-India is main importer of crude oil and other various commodities and export is very less so we should think in export perspective of commodity. Government should deduce their subsidy on exporting to growing export.

2. Debt Market-every individual try to deposit their money in bank at risk free rate there only 10 % of population deposits their money in debt instrument if government should attract investor in debt market so our economy can boost.

3. To provide special facility for establish new entrepreneur's in country because its supports production and provide employment and deduct the import.

4. We should think in terms of education in village which can help to grow our economy.

5. Our country is mainly depend on agriculture so we should provide new technology to the farmers and provide subsidy in fertilizers and pesticides.

These factor can grow our economy if we would think on that side.

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Nitesh Ojha said: (Aug 12, 2010)  
Pumping of Money in Economy means contribution or extra money. Extra money comes from which sources: if RBI print new notes and pump in the market the result outcomes is huge inflation and the mismatch of Demand & supply. So that pumping money in the economy is not only a solution but searching new scheems like increse the production of crops, by increse the amount of export material and changing the intrest rate, CRR and Repo rate government solve the problem of economy.

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