Finance Ministry – Financing of National Budgets and Mega Projects of National Importance .

India has been struggling to find money to fund many projects that are of critical importance to national security and poverty alleviation. It needs to bring in innovative thinking and policies to bridge this resource gap and The Rising India Party suggest some possible initiatives as follows:

  1. In order to reduce pressure on Budgetary constraints, and to ensure that there are no financial holdups in rolling out projects that have a bearing on national security such as the Defense and Technology sectors, The Rising India Party Government would throw open the financing of national budgets of selected projects, to the Private Sector in Public-Private financing models opening up a huge space for the nation’s entrepreneurs and various banking groups active within the economy.
  2. Such financing would be underpinned, where necessary, partly or wholly by sovereign guarantees or other government assurances so as to attract private funding for the national interest
  3. These would be based on pre-set terms and conditions which would include long term loans, interest ceilings, tax breaks, long-term extended payback on investments and related appropriate financial instruments to create working models that are sustainable and framed within the narrative of broad national and public interest even as it provides the opportunity to a large number of the country’s business and financial community to become an integral part or the national development frame.
  4. Plans Board and Implementation Board Groups would be formed for identifying opportunities where such activity can take place to energize and boost the economy within 12 months of The Rising India Party forming government.
  5. These groups would frame these projects and will work with industry and financial groups to get sectoral activity that has local and export components.
  6. Plans Board and Implementation groups would be formed within the Finance Ministry for each major-budget-expense area
  7. These Groups would comprise people and expertise from a wide array of resources available within the Country, including from the Bureaucracy in an observer and participant mode, over the past, from British Times to current times, “lord it over” mode of functioning.
  8. Resource allocations would be based on the importance of a given project within the national security and wellbeing narrative whereby the government would make special deals via appropriate financial instruments on a holistic and flexible case-by-case approach to get such projects flying without financial constraints, in a manner that the entire country becomes alive with energy and flush with money, and leapfrogs to become the lead economy of the world, as it once was for thousands of years till just a couple of hundred years ago.
  9. Private-sector firms that have the heavy engineering and other technological capacities and abilities to participate in the national development narrative in creating depth of technologies across a broad spectrum or arenas, as identified, either singly or in industry groups, to speed up critical projects and the process of acquiring the required Intellectual Property, through a policy of knowledgeable and experienced people over begging for Tech.
  10. Defense projects and production will be brought together as focused groups.
  11. These would be split into subgroups for intense identification of projects and the building of defense technologies and weapon systems that the country needs.
  12. The financing of such projects would be opened to the private sector who can, and will be able to fund the projects or to banks for providing the funding to industrial groups at concessional interest rates for implementing identified projects.
  13. Tax concessions and sovereign guarantees for such debt repayment over predetermined period of time would be considered and provided.
  14. Projects where there are future earnings, such as in infrastructure, would be framed such that the investor-promoter would gain income over a 25 year period, with government guarantees to make up deficits if any, for per-determined pay back scenarios; such as up to double the investment including interest costs to ensure that there is both safety and return on investment.
  15. In cases where there are no income flows, such as in the case of some defense projects, the government would retire such debt in pre-determined manner.
  16. In the case of armaments, the government would allow market sales within certain laid out policies to create income flows and payback scenarios for industries and investors who invest in these core strategic sectors.
  17. India has no armament industry to speak of, and is one of the biggest buyer of arms from across the world; thus, subsidizing and creating huge incomes for foreign companies and powers, ceding power to them with huge ongoing costs, and always behind; it is time this changed and rapidly;
  18. These issues are to be placed within the ambit of the functioning of the Finance Ministry who would have staff groups with armed forces and tech-personnel, included in the forming such working groups.
  19. Similarly, Technology Groups would be within the ambit of the Finance Ministry where the financial allocations and decisions are made.
  20. The Finance Ministry is the Core Ministry and Tool at the disposal f the government.
  21. The Finance Ministry’s functioning methodology must change to an enabling one, for the country to rapidly catch up and surpass the world in Technology and security suites.
  22. Inputs are invited to expand or amend the narrative described herein.

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