Expense to run a nation

Dear friends, 

We all understand running a nation is a complex and demanding affair. Now given a country like India it is even more complex as there are various demographics involved. But managing the governing body and keeping them motivated is important as well. But in the trying times like these, it is imperative to understand where the expenses are heading. Inflation is a headless demon and it cannot be tamed by increasing COL (Cost Of Living) and RR (Repo Rate). 

Economics are far more deep and require grass-root level understanding. We have had 4 RBI governor changes in the last 7 years and that incudes experimenting with the approach and direction for stability. Media houses screaming on top of their lungs that we as a country are in a better position on inflation. But has anyone tried to understand that increasing fuel prices triggers a snake pattern on essential commodities. Increasing RR causes restriction on freeflow or liquidity of cash. Both these items play a big role in steadying the economic balance. Then we have the trade deficit which is again depends on the earlier to components for self-reliance. We are making our own weapons and defense equipment but at what cost. The price at which are able to achieve that feat again involves alot of tech to be imported and that drives up the cost as our R&D is dependent on innovation which requires significant investment. But as a country how much do we invest?? Well, just to respond we are not investing much to say the least. 

To simplify things there are 2 components that can provide control on running a nation efficiently. 

• Controllable 
• Uncontrollable (Cause n effect outcome)

Controllable :  

This is a section that deals with direct expenditures by the government. Which includes Salaries, expenditures, Tax collections (Yeah we got rid of colonization for want of independence and getting  rid of draconian tax burden !!!)etc. Salaries are paid to MPs and beaurocrats. Now the larger some of salaries and expenditures is incurred managing and keeping the MPs (Member of Parliament) motivated. Lets look at that from a high level (L4 level). Please understand this is a dated working as these have definitely changed or scaled higher lately (So much for Lokpal and peoples control and governance). Anyway lets take a point in case of salaries of our serving representatives here. There is no intention to malign or caise havoc, this is purely intended for education and awareness purpose.  

• Salary & Govt. Concessions for a Member of Parliament (MP).
• Monthly Salary : 12,000
• Expense for Constitution per month : 10,000
• Office expenditure per month : 14,000
• Traveling concession (Rs. 8 per km) : 48,000 ( eg. a visit from Kerala to Delhi & return is: 6000 km)
• Daily DA/ TA during parliament meets : 500 per day
• Charge for 1 class (A/C) in train: FREE all over India (for any number of times)
• Charge for Business Class in flights : FREE for 40 trips per year (with wife or P.A.)
• Rent for MP hostel at Delhi : FREE
• Electricity costs at home : FREE up to 50,000 units
• Local phone call charge : FREE up to 1 ,70,000 calls.
• TOTAL expense for a MP [having no qualification] per year : 32,00,000 [i.e . 2.66 lakh per month
• TOTAL expense for 5 years : 1,60,00,000

For 534 MPs, the expense for 5 years : 8,54,40,00,000 (nearly 855 crores).

AND Tour premier  IS ASKING THE HIGHLY QUALIFIED, OUT PERFORMING CEOs TO CUT DOWN THEIR SALARIES and LPG SUBSIDIES.

This is how all our tax money is been swallowed and prices hiked on our regular commodities....... And this is the present condition of our country.