Six Economic Flaws New Government Have To Fix


2. Increased gas prices can cause problems: Natural gas pricing was supposed to be renewed to $8.4 per million metric British thermal units (mmBtu) from the earlier price of $4.2 per mmBtu. The oil ministry hopes to resolve the gas price dispute and the settlement notice from Reliance industries regarding the price doubling but there are doubts whether this can be done by the old government or the new government. But for now, the Election Commission seems to put this price doubling on hold and according to the Ministry of Petroleum and Natural Gas, this price hike will be made valid from April 1, 2014. It seems that Reliance Industries has served an arbitration notice against the government regarding the delay in announcing new gas price from April 1, which shows the negative impact on billions of dollars of investment in gas fields. Not only Reliance many other huge industries will lose their money if the gas cost increases.

3. Changes in infrastructure: Large infrastructure changes are expected this year. The reason behind this is the Food Security Bill that was passed last year. In simple, infrastructure for the acquisition, storage and distribution of food will built again and all the expenses regarding this will have to be managed with future money. Apart from the money the main impact will be seen in the reduced quantity of food grains availability. Naturally, the prices will go up as the supply of food goes down.