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

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 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.

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.

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.

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, 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.

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.

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.

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.

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.