Should businessmen run the finance ministry?

Hmm! Now thats a thinker. In a way the goal of both the Businessmen and the Finance ministry is common i.e., Profits. But, the way both these earn profits is totally different. A Businessman can earn profits by whichever means he finds suitable, whereas in case of Finance ministry the profits are earned putting welfare of a common man as a top priority.

Talking about India, the economic reforms over the past 15 to 20 years have been characterized by crony capitalism. There have been many missions and omissions due to all the scandals that we have witnessed. And putting a Businessman in finance ministry in such a scenario would aggravate the problem. The first thing that a businessman would do is try and get his opponent out of the market by manipulating all the policies.

Plus there is a basic difference between a Businessman and a Politician. A politician has a varied experience in all the fields. In general a politician has worked in more than one department like Zilla Parishad, PWD, Department of Telecom, etc. He understands every aspect or every sector that is affected by the Finance Ministry, whereas a Businessman has expertise in only one field. He may or may not understand the effects of his decisions on other sectors.

On the other hand, there is a very little room for error or mistakes when one takes financial decisions for a country. When a businessman takes any decisions it is his company or organization that incurs the losses or benefits the profits. But when the Finance minister takes a decision its effect can be seen directly on people or the nation as a whole.

So to sum up then I personally think that Businessmen should not be allowed in Finance Ministry.

Actually, Finance ministry is one the most accountable ministry for the nation's economic development. This position can be substituted by a visionary person whose priority decisions for the forthcoming years could increase the GDP and in common sense, the improved living standards. It requires some of the decisions which can either heighten or deepen the stock exchange value. The ministry requires complete understanding and functioning of national economic scenario.

The implementation of certain policies have a very non-negotiable impact on the market as well as on the GDP thus the ministry requires a proper leadership, effectively posing real-time effect on the market and the overall nation's economic growth.

A businessman is a person with a quality of withdrawing money from the client. They have the short-term vision as compared to some industrialists, although irrelevant here. A businessman's sole aim is to dominate the market in order to establish the monopoly. Although their particular workings does not make reasonable sense to compare their principles of workings.

But it is practically viable and approved that practical experience can curb the intolerable monetary problems more efficiently as compared to theoretical expertise of a minister. The more stock sensitivity of the businessman put one in a position to take decisive action upon requirement and can prevail the economic pull into desirable direction.

So at one point I think businessmen can run the finance ministry more efficiently.

Businessmen running a finance department of a company has to look at keeping the balance sheet inclined towards profits all the time but the government does not work only on earning profits it has to fund the disasters, the people below poverty, to fight terrorism and protect environment and so on. Which are not yielding profits in jiffy but are unavoidable for smooth running of a country.

A finance minister has to keep in check the inflation and businessmen has to check for cost cutting methods.

Flow of money in to the market to check the deficit along with RBI is an imporatnt job of a finance minister. Businessmen has to work on various sources to raise capital.

So there is a huge difference in running a ministry and a business.

It cannot be said that a businessmen will not make good minister as we do not know his personal background so it cannot be generalized whether a business man can make a good minister. But it appears less likely for businessmen to fit in the chair of finance minister, taking into consideration various perspectives which a minister has to work on simultaneously.

As the businessmen has the Company centric behaviour to make profits but a minister has to think on different lines of public welfare and have policies which benefit all the classes of a society and a particular company.

The impact of finance ministry is very bigger than a single company. As the latter effects only few group of people but the former effects the whole nation.

If we give the chance to become the business man as a finance minister, it will not work as many people expect. One finance minister has to forecast those rules and regulation to increase overall country economy. Every business man always expect for profit or return from the investment but finance minister should not expect for profit when he\she make investment decision. He\she has to invest to increase status of all people's of the country and it may be in education, health sector or other. And to ensure the people demand and expectation he\she should equally invest in all the sector whether it is less profitable or high profitable sector.

So, only to develop country economy he \she should be not the business man it may be any one who have good idea or all the sector equally and that is political leader who become a leader after struggling to develop all the sector. Political leader is the person who come to lead from small place of the country and know all the impact of the rules and regulation made by past government's minister.

Good Topic!

To start off, Lets just not generalize this to particular business man/business house. If at all, a business man was to sit in finance "ministry", we would expect the person to not only have a strong foundation in Macro and Micro economics, but also has on a broad level, understanding of the political implications of the decisions. Since the ministry deals the fiscal measures, a person with business back ground would have a strong understanding of financial elements like Balance Sheet, Deficits, accruals and consolidations.

Given the candidature, we could decide upon who is good in taking up.

In my opinion though, I would rather go for a person who has some grounding in Economics, like an efficient businessman, than go for a a person who acts just as a rubber stamp for any postulations made by the advisory council in the ministry.

A business always minds his own business.

A businessman always thinks about his own benefits and ways of increasing his own profits. So if a businessman got to be the finance minister he will make the policies for the business growth his main motive will be maximizing the profit. But this is not the only responsiblity of the finance minister he has to think about every one in the country.

There different sections of society from low class to middle class to high class. As a minister of country his purpose is to take each section of society for growth. He has to invest on policies like NREGA and various other employment policis which may not provide much profit but are necessary for the development of lower sections.

So finance minister should have a thinking of Businessman but should also focus on the development of lower section of society.

Running a Finance Ministry is totally different than running a Business. Finance Ministry in India has always a larger perspectives and objectives, where businessman has narrow perspective - earning money or fame.

Businessman normally invest with an objective of return - Take decision based on ROE, NPV or Payback. Finance ministry can not take decision based on this value.

Government is spending few % of budget only for education, health, employment, welfare of women, etc, where no return is expected accept betterment of society. I don't know any businessman will invest even Rs 1 for this cause without any personal interest or purpose. FM is also taking care of weaker section of society, where business person always take care stronger section of society.

By all above, I am opine that BM should do business and FM should run ministry.

Why not, Is that not correct that an expert of particular field leads that department.

That is a particular problem in India that there is no criteria or qualification for who leads a particular department. It is clear that a person lawyer in profession becomes finance minister will not be as efficient as he could be in law ministry. It is same as a mechanical engineering tries to design a chip.

India not only suffers from this but has may serious problems like bureaucrats leads major department like director of aviation in DGCA, director of fertilizer and many more examples and it directly impacts our efficiency because they drag there feet while passing an order or file because of lack of knowledge.

So we should start the trend of having expert of particular field in there own departments.

According to me a businessman should never run the finance ministry! The basic aim of both of them may be the same i.e., profit. But in the case of businessman, he is concerned only with profit and never consider the common people and their welfare.

India always lacks the presence of educated people to head our various departments. Hence if an educated person can run the ministry, then its good. But the ultimate aim should be the economic welfare of people. The decisions taken by a minister affects the entire nation and the people relying on the government. IN business the profit or loss affects only that particular firm. So my personal opinion is that one who is experienced in various fields of a democracy should run the ministry so that economic and social inequalities do not occur.

Do you realize how people are negative about changes? Why businessman can't be a good finance ministry?

If he is a successful businessman he would have appropriate skills and techniques to increase profit. Yes, this is the fact that they think on their own but they have never been asked to work for the whole country that's why they think for their profit only and that's absolutely right. When you grew up as the successful man who runs his business or job that time you became eligible to family head. Do anyone says he is only capable of earning money but cannot handle family? We should ask for change. Changes in life give more options and new ideas.

Businessmen have the capability to apply their knowledge to profit whole nation as well as they are able to provide new schemes too.