Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Dear Visitor: Equitymaster will be under maintenance from 10:00AM to 11.30AM on Sunday, 25 March 2018. During this period, our websites will be accessible though there is a possibility of some intermittent accessibility issues. Please bear with us. We are taking yet another step to make browsing Equitymaster a much faster experience! Thank you.

Should FM take lessons on time value of money?
Wed, 21 Nov Pre-Open

Corruption and politics have run hand in hand in our country since ages. But the magnitude and frequency of scams unraveled in the recent years have broken all records and have taken all by surprise. However, those at the helm of affairs seem hardly shaken. In a country where unaccounted black money is estimated to be more than half of the country's GDP, the Government is defending itself by pointing finger at the people working hard to unearth such scams and questioning their estimates of losses.

Ideally, the magnitude of 2G scam and Coalgate scam and the public reaction should have prompted some corrective action from the Government. Unfortunately, it is still in denial mode. As per the finance minister Mr. P Chidambaram, the CAG estimates of potential losses on 2G spectrum and coal gate scam are both mythical. He conveniently ignores the fact that the resources in question here such as coal and the spectrum had revenue generation potential that was wasted due to non transparent policies and lack of accountability. The finite resources were given away for near zero prices. As far as CAG estimates are concerned, they obviously can't be confirmed since what they depict are notional losses. However, the same if realized could have made a huge positive difference to the India's economic growth. The bigger issue here is that things have gone wrong. And it is not just a minor slip up, but a willful misallocation of resources subjecting the country to huge losses.

The statement is both ridiculous and ironical, coming from a person who introduced the concept of notional losses due to tax reliefs (almost at par with CAG's estimates of losses due to scams). The crucial numbers that reflect the country's economic health have been consistently falling short of the targets set by him in the budget. The alarming fiscal deficit numbers during his tenure excluded the behemoth subsidies on fuel, food and fertlisers, a clear attempt to window dress the accounts. If accuracy of the numbers is that important, it is the financial planning where FM needs to act. As far as CAG's revelations are concerned, what he should bother about is the time value of money that the country has lost. To conclude, it's time to stop taking entire country for a ride and address the issues that have led to a serious dent in the country's image as an investment destination.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Should FM take lessons on time value of money?". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Mar 23, 2018 (Close)