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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.