Today, the three most upsetting issues in front of the nation are terrorism, corruption, and recession. All these three issues have the immediate negative effect throughout the country. Terrorism is threat to the life and it instills fear. It stops people from going out and living their normal life. Terrorism ultimately has negative impact on the business and affects every one of us in some way or the other.
Corruption again gives an extremely negative emotion among the people. It makes them feel frustrated and angry over the administration for its failure to control the corruption. Recession is the slowdown of all the economic activities. It affects Gross Domestic Product (GDP), employment; investment spending, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise. It is triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
Any political party, whoever comes in power in 2014 general elections have to face tough challenges in terms of performance. No political party is clean when it comes to corruption. However, different political party has different view on dealing with terrorism. The recent deterioration in economic stability of most of the European economies doesn’t have major impact on the Indian economy.
However, government’s inability to tackle the issue of corruption and economic slowdown has only frustrated the Indian people. Incidentally, BJP wants to abolish income tax and put it with a standard tax of 2% on bank deposits to contain leakages and make a much larger number of Indians pay tax. As very small number of Indians pay tax, it makes more sense to abolish the entire concept of income tax and replace it with a more liberal regime whereby some other mechanism instead of income tax is found out to raise revenues for the government.
All political parties just want to come in power by using any means without any efficient policies in hand, which will work for the nation. They all just play the game of promises of free water and electricity. Gujarat has performed well because the government has attempted to replace the subsidy regime with a regime of making people pay the economic price for what they consume. An ensured and stable supply of electricity at a reasonable price is more important than free electricity with massive power cuts and voltage fluctuations, be it a small or big, or even a farmer using motor pump. Fluctuation causes damage in machines as well as to business fortune.
The main challenge for political parties is to increase the income of people through efficiency in the distribution system, increased productivity and production, increased capital investments and changing laws, which are no longer effective. India has its own political problems such as relationship with Pakistan and Kashmir issue that has mushroomed hundreds of terrorist who spreading violence against India. As a nation, India still does not have any coherent and comprehensive policy to deal with terrorism. The central government and state government is blaming each other and doesn’t take the ownership to solve the issue from the root.