On Aug 23rd India’s finance minister Nirmala Sitharaman announced the National Monetization pipeline scheme. This scheme is about core government assets monetization and is expected to earn 6 lakh crores in the next 4 years.
Why Monetize the government assets
- Increase overall government earnings
- Boost Infrastructure of our country
- Boost India’s economy
- Better untilization & monetization of government assets
Let’s see what are the advantages and disadvantages of this scheme to a common man
Advantages
- New employment opportunities will open up under these assets
- This 6 lakh crores will be invested in infrastructure which will boost India’s economy and generate more employment
- Overall improvement in the facilities and user experience of these assets
- As a consumer, we will get a better quality product & service
Disadvantages
- The prices of the goods & services will be increased
- There will be an increase in taxes like road tax, toll tax etc
- As private players are focused on profits, there can be differences in facilities and services depending on the demand
- The government has not declared any policies or laws for this scheme
- This scheme can create a monopoly in these sectors.
Conclusion
This is yet another good idea, just it should not be a bad implementation. Let’s wait for next year’s budget to see whether the achievement of the National monetization pipeline scheme projections has been achieved FY22.
Here is a complete PDF about the scheme