Evaluating India

Evaluating India

I am a senior citizen with 57 years experience of a business executive working in MSME sector, for quite some time as a CEO. After taking retirement from my working life I started researching about India and government working. I found that government has a very systematic data base on all subjects.  All revenue and expenditure is well recorded. The country has been subdivided in to well-defined Geographical Entities. Detailed information including geographical attributes, history, geographical features, Administrators, natural resources and national assets, civic amenities, economic activities,  is available for every Geographical Entity - villages, towns, cities, metros (there are 6.58 lakh geographical entities in the country from big to small as per 2011 census).

 On financial matters I found country produces annual budget that gives account of revenue received, where it was spent in past two years and what is the estimated revenue and expenditure plan for the ensuing year. The country also produces a GDP statement that gives monetary value of all goods and services produced in the country – both in government and private sector. The data provided is authentic and unbiased.

However, I was perplexed to find that the government does not produce a Balance Sheet which is a statement of All Assets and Resources and Liabilities of the enterprise. In business environment it is unthinkable to operate an enterprise without this document.  In fact, Government of India has prescribed a standard format of Balance Sheet for commercial enterprises but Government itself does not produce a balance sheet every year.

On deeper study I found that governments have not been able to produce this document world over due to various complexities like-

1.    The country is spread over a vast area – 32.86 lakh Sq km, having various kinds of features -  like vast cities to small hamlets, mountains, hills, ravines, rivers, water bodies, forests, sea coast, etc.

2.    The country is bestowed with a rich bank of natural resources like land, water, air, sunlight, airwaves, minerals, human resources, wild life, flora and fauna, forests etc that have not been valued per unit of quantity.

It appears these impediments have deterred countries to produce national balance sheet.  On deep study of data available I have devised a methodology that shall enable systematic production of –

i)              Comprehensive Profile Statements of every geographical entity enlisting all vital features of the entity and value of various kinds of assets and resources available therein, both in public and private domain, in quantity that can be converted in to money terms by multiplying with unit cost of the asset.

ii)             Balance sheet of every State of India, Central Government and a consolidated Balance Sheet of the nation as a whole.

iii)            This document shall be published annually. It shall be on internet to be available globally to everyone who have need and can benefit from this information.

iv)           This information shall open up flood gates for qualitative and quantitative development of every geographical entity of the country. In fact, and most importantly, while India resides in its urban area spread over just  3% of its land area with only 30% population, Bharat resides in 97% of the land area and nourishes 70% of its population.

v)            This 70% population contributes only about 17% to its GDP while 30% urban population enjoys major chunk of 83% of GDP. Thus rural India is perennially poor. The Comprehensive Profile Statements for each of these villages shall make available vital data that shall enable Planners, its residents and all stake holders to think how their income can be increased making full utilization of valuable natural resources and assets existing there.

vi)           Annual Balance Sheets shall establish credit worthiness of States of India and the country as a whole.

Balance Sheet presents in an authentic manner real Net Worth of an Enterprise.  Lenders rely on this document for lending money to an enterprise. All countries run on loans – huge loans. Lending without seeing the Balance Sheet of a country is helplessness of the Lender and High handedness of the Government.

National Balance Sheet shall demonstrate real Strength of the country. Balance Sheet is not a luxury -  it is a must that serves various purposes including for Planning and for obtaining loans.

Moreover, In order to achieve the national goal of doubling farmers’ income in 2022 it is rather essential that there is better utilization of natural resources and creation of more productive assets.  For that these Comprehensive Profile Statements of every village listing all of their natural resources and assets shall be extremely useful.

I have developed the Methodology that enables computing value of all Assets and Resources of the country and produce a Balance Sheet. The process, issues and solutions shall be discussed in my blog posts. Please study and analyze.  Your comments shall enrich the product.

Please respond at mkagarwal42@gmail.com

Disclaimer: The article has been compiled for the purpose of providing general knowledge only.  Viewers should make further research on the subject for taking any decision which can have consequences.  This information has been collected through secondary research and publisher is not responsible for any errors in the same

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