Saturday, September 8, 2018

MANMOHANOMICS Versus MODIECONOMICS : BOTH SIDES OF SAME COIN



MANMOHANOMICS EXPOSED BY DINAMANI DAILY :2011

The great economist who opened the floodgates for corporate socialism is putting up an innocent face while behind the curtains favoring corporate and acting before public domain as if he is paragon of virtue to be kept beyond the purview of Lokpal. The petroleum price hike and the arguments advanced under Manmohanomics are punctured by Dinamani Tamil daily of 23.06.2011 in its center-page article by P.S.M.Rao.

Argument: Internationally crude oil prices have shot up and hence it is inevitable to raise petroleum product prices in India… so says Manmohanomics.

Expose : Current prices of crude per barrel is around 94 dollars. If we take up the prices from last month average price would be 100 dollars per barrel. Exchange rate of dollar is Rs 44.9. On average a barrel costs Rs 4,490. One barrel contains 159.99 liters. So the price of crude oil per liter will be Rs 28.

In petrol production crude oil is used 90 percent and remaining 10 percent of substances available in India. So per liter production cost of Petrol wont exceed Rs 30.

In 2006-2007 the cost of refining and producing petrol was Rs 19.47. In 2007-2008 it was Rs.24.71 and for 2008-2009 it was Rs26.11 only. In 2009-2010 it was Rs 21.75 only. If the Government of India had kept people as priority or cared for consumers more than corporate sector it could have sold petrol within Rs 30 or around Rs 30 with reasonable tax. So the argument that companies had to hike petrol prices due to international prices of crude rising is a myth.

Argument : The necessity to hike price is due to mounting losses of petroleum companies. In last year the losses for petroleum companies was Rs.78,000 crore and in current year it stood at Rs 1,80,208 crore.

Expose : Petroleum companies are not incurring losses at all. If you look at their yearly financial statements it will reveal all were earning profits. Rangarajan Committee too had pointed out this true state of affairs.  The difference between government rates and import price is shown as loss.  If these companies had incurred loss how come between 2006-2010 in four years petroleum companies could have shown Rs 1,26,888 crore of profit. By statistical jugglery a false picture is created to show as if petroleum companies are incurring losses and hence price rice is inevitable.

If only so-called Left parties which frequently resort to road-roko or bandh over petrol/diesel/gas price hike have explained like Dinamani, Indian people would have understood the dirty tricks of Manomohanomics, but they too failed the people.

Argument : Mounting subsidies led to inevitable price hike.

Expose : In between 2006-2007 to 2009-2010 the subsidy given by Government of India for petroleum products stands at Rs.23,325 crore. But in same period by way of taxes on petroleum products GOI had earned Rs 4,10,842 crore. If we calculate this the subsidy would be only 5.67 percent in profits made by GOI. If we include State taxes of Rs 2,63,766 crore then the subsidy will be only meager 3.45 percent of the profits made by governments.
By hiding the truth the Government of India will be telling the country that it incurs Rs 18.19 loss in diesel per liter given through public distribution system and Rs 29.69 in per liter of kerosene, and Rs 329.73 per cylinder of gas. By repeatedly drum beating these statistics, Government wants to hike the prices of these products and crush the consumer. Tax the corporate and not common man, which economist will teach basic democratic principle to Dr.Manmohan Singh.

Dinamani Tamil daily writes as eye-opener, turban covered ears of Prime Minister may not hear people’s woes at least Tamil knowing Home Minister P.Chidambaram or Finance Minister’s Minister of State Palani Manniccam must translate Dinamani and advice the Government that Manmohanomics must stop helping corporate to loot the National Exchequer.

N.Nandhivarman
General Secretary Dravida Peravai
22.06.2011