Tuesday, October 30, 2012

What Finance Minister should do to cut the inflation rate?

In my Opinion, the government should focus on generating more employment which would there by decrease the need of subsidized goods to meet the needs.
 Following to be done for employment and judicious use of resources:

1. These rural employment scheme to be directed to agricultural jobs. Lack of man power is one of the reasons for not doing agriculture in many areas.
2. Part of these rural scheme workers to be directed for infra build up jobs .None of these worker want to work for more than an hour in a day. Some place, they fight if more job is given. They want money for resting.
3. Public transport is to be encouraged instead of private vehicles. By using many public transports for short/medium distance like for 5-10 kms, fuel spent per kg per passenger will be much less than that of private vehicle.
4. Usage of by cycles to be encouraged.
5. The saved fuel by above measures to be used for power generation,so that fuel will be freely available for power plants.
6. The input cost of fertilizer/ cement /many other companies will come down if we give same quantity of subsidized fuel for power generation as though we give for private vehicles usage.
7. In due course, fertilizer will be available for cheaper rate,power will be available for cheaper rate govt need not give any power/fertilizer subsidy for farmers.
8. Cheaper power,cheaper fertilizer,easy availability of man power will make farm income profitable rural income will increase.
9. Consumer spending will increase. More consumer goods production,more employment will have more cash flow.
10. Many medical colleges to be opened and sufficient no of medical colleges to be opened to keep the last cut off as 80%. Thus many doctors will spread across the country penetrating rural area too,thus migration of citizens to cities/towns can be best prevented Which is the most influential factor for demand side inflation.
11. Real estate price too will come down..so that true value for plots will emerge thus protecting citizens from paying 2 crore rupee for 2400 sq ft.
12. Govt should survey the annual requirement of technicians/engineers/ other professionals and accordingly regulate the training/employment to avoid undue accumulation of unnecessary man power in single skill.
13. Above all politicians should truly will for country's development,not fighting/revenging the opponent to run the political business.
14. Many more thing to be done. But I leave it here for want of space. Thanks. 

Thursday, October 25, 2012

The rule of 72 !!

The Rule of 72 is a well known formula in Investment guides to calculate the number of years required to double your present corpus value at a given interest rate. This is essential for you to determine where you want to park your money so that it gives you a good return and helps you in planning your future accordingly.



Number of years, T = 72/ R , where R is the rate of interest.

For example , you have invested in a bank FD with 8% interest rate, then (72/8 = 9 years), your present value will double in 9 years.

Hope this simple and easy to remember formula helps you.


Related Posts Plugin for WordPress, Blogger...