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FM to tell CEOs: Tone down lavish lifestyle

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P. Vaidyanathan Iyer

Posted: Jul 13, 2010 at 0426 hrs IST

Mumbai Finance Minister Pranab Mukherjee is likely to call a meeting of a dozen top industrialists soon to underline to them that an “ostentatious lifestyle” by CEOs does not reflect well especially when 37.2 per cent of the Indian population is still below the poverty line.

Tarun Das, President of Aspen Institute, India, and former chief mentor of the Confederation of Indian Industry, the most powerful corporate lobby in India, told The Indian Express that this was suggested to the Finance Minister in a recent meeting he had with corporate leaders ahead of the Group of 20 meeting.

“Narayana Murthy (Infosys Technologies Founder-Chairman NR Narayana Murthy) too agrees with me that corporate CEOs must refrain from making a show of their wealth. I think the FM will soon call a meeting.”

Earlier, in September 2009, Mukherjee had launched an austerity drive within the government to save resources following insufficient rains across the country. He asked ministers to travel economy class and put curbs on seminars and conferences in five-star hotels. He himself flew budget carriers and all in the government fell over each other to prove their austere way of life.

According to Das, a politician of Mukherjee’s stature will be taken seriously by India Inc. “People in India think the corporate sector is not doing enough for the society,” he said. It was time, for instance, that the top 10 Indian corporates set aside Rs 1,000 crore each for providing safe water, good quality education and medical facilities for the poor, he said.

“More than money, the corporate sector has the management skills to execute programmes without leakages. They must join the government in its efforts,” Das said.

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I think FM must have to look at the opportunities for the 37.2% poor people by Hemang Shah on 13 Jul 2010

There are good numbers of people required employment in India till date. If we start giving them wef today we shall definitely reduce the % of BPL. There are ample numbers of villages facing water and basic necessity challenges, which has been ignored by most of politicians. There are numbers of challenges we need to look at other than cutting the expenditure.

Even politician should also practice the same by RB Jha on 13 Jul 2010

Preaching is better than practising. I know Pranab Mukherjee is the kind of politician who practises what he preaches. But what about other politicians? If people's representatives lead a simple life minus the pomp and show till people below poverty line have decent standard of living, it will be good. But, if they don't do so and preach well-to-do people to do so who pay tax, it will not be justified. After all they are leading life of full comfort after paying tax. But what about politicians. They do nothing in the Parliament or in the Legislature but live like king. Better practise before preaching.

Pranab is old enough to handle Finance....He just thinks about austerity but no action to catch politician who are spendthrift by Anil on 13 Jul 2010

Pranab Sir, Please encourage your teams to brain storm on new ideas to improve standard of living (poor people) and think of reducing price rise rather than giving suggestions to Indian corporate. Also why did you stop austerity drive within the government. Comon....grow up in your thoughts and think beyond austerity(which you cannot control). Every Indian like me are doing our bit to help poor unlike politicians who use their position to consolidate and expand their wealth and assets.

COST CUTTING by Subhash on 13 Jul 2010

These are crocodile tears and means to stick to power/any how remain in the govt. Otherwise all the problems have been created by Congress. This party follow One rule i.e. divide and rule. Sometimes it is reservation sometimes it is communalism, some times it is poor versus riches.The take convicted criminals in the govt.sometimes they protect criminals.The whole congress should learn the Nationalism

LAVISH LIFESTYLES OF THE HIGH AND THE MIGHTY by NIRANJAN on 13 Jul 2010

IT IS A CLASSIC CASE OF POT CALLING THE KETTLE BLACK. WHILE THE CEOs MAY BE LIVING LAVISH LIFESTYLES, MOST OF IT FROM THEIR OWN POCKETS, YOU POLITICIANS ARE LIVING ROYAL LIFESTYLES, WHICH WOULD SHAME EVEN THE QUEEN ELIZABETH, AT THE TAXPAYERS' EXPENSE.

FM,Pranab should concentrate on his own job only and let corporates live as they want to by L.C.Bilandani on 13 Jul 2010

It is in the bad taste that our Finance Minister has asked corporates to tone down their lavish style.Why should they?They do it of their own money after paying full taxes.It will be much better if he asks his own cogress govts. to tone down there life styles.Why the austerity measures have been stopped when everyone know that 37.5%of our population lives in below poverty line.The congress govt. has always ruled the central govt.and for a long time all over the country and Bimaru states and after 60 years of its rule it could not eradicate poverty.Ministers and MPs live in much grandeur than the corporate magnates.Look at the bunglows at state and central governance seat and even the rich of the world will be shamed by the size and sheer structure of bunglows complete with security systems in place.If at all the top 10 corporates decide to put away 1000 crores each, the money should be not handed over to govt. coffers but the corportes should themselve spend on education and health.

what's next: Socialist Republic of India! by Ajay on 13 Jul 2010

WHAT RIGHT DO YOU HAVE to decide how people should spend their money? This old man is losing it. He has forgotten the basic fundamentals of economy. As for the ethics and morals he should try his thoughts with his politican colleagues.

Do not heap poverty on company CEOs by Vedam on 13 Jul 2010

Politicians spread poverty by hiking infernal casteist quotas that is pocketed by the RICH backwards. In the process they destroy the unity and integrity of the country. They abjectly surrender at the altar of quota politics. But if someone is making money legally and honestly the Quota goonda politicians' evil eyes fall on them. These quota monsters are now feeding Jihadi monsters and would love to bring poverty among the CEOs who at least have India's growth in their hearts.

Well why dont you open up more BHEL, Aircraft projects , TANK projects by raj on 13 Jul 2010

We have seen what India achieved before 15 years. All loss making and corrupt state firms run by corrupt politicians. They didnt care much about efficiency, profits and benefits to people. Now we see visible impacts in IT, Telecoms, Oil & Gas, Airlines, banks etc etc. The list is endless. There is nothing wrong in showing of their wealth. But the Industrialist should be sensitive to society and should support independent programs that helps poor people. Companies that become rich from Society should also give back to society. It is a good thing and we have to support Mr Pranab.

CEO perks toning down on FM s advice by PMG.Pillai on 13 Jul 2010

dear on line editor, Finance minister must inform the voters why the gvernment has enhanced the Parliament members salary to EIGHTY THUSAND rupees recently when the recive so many other facilitis free travel and hownaby such frees.Similarly why do the ministersdraw traveling allowance when they use govenment vehiclke governmet drvers etc Is their any justifcation for drawing this allowance?No not at all.Let the minister reduce all these free items frm their earnings free frm IT then only advice CEO s aboiut the change in heir earnings.Incoe must be within certain limits only.Po;itician also must adhere to that norms dated July 12th 2010 Time 1155Hrs isrt AM

Act before you speak.. by Qudsia on 13 Jul 2010

Its time to act now.why does not the government take the steps to curb the exorbitant wastage of wealth instead of making irrelevant speeches.Why is the tax wasted in providing superfluos comfort to the public servants of higher authority?

PranabM by viswanathan on 13 Jul 2010

Absolutely right . Let the politicians first do what they preach . They display the govt wealth and the CEO displays only his own wealth

Director by Girish on 13 Jul 2010

Mr. Mukherjee, it is the hard-earned money for the CEO's! They should be allowed to live however they want! However, you should be commenting on your own partymen, rather than those who work hard. Recently Rahul Gandhi went to UK to celebrate his birthday - could you comment on that please! What about the lavish lifestyle of all those "public servants"? Please leave the corporate alone - they are atleast functioning meritoriously.

FM to tell CEOs: Tone down lavish lifestyle by Amar on 13 Jul 2010

Why the loose talk? Has the FM imposed inhibiting taxes on items and activities supporting the lavish lifestyle? Has the FM imposed restraints on the government babus from leading a lavish lifestyle at the expense of the taxpayer? Instead, the financial burden on the common man has increased to support even more wasteful government expenses.

What abt the politicians? by RJP on 13 Jul 2010

Pranabda, what abt the politicians who spend crores of tax-payers' money for doing nothing ?? The corporates atleast pay taxes. What abt the unlimited benefits that the politicians get ??

Sensible advice by ashok on 13 Jul 2010

Sensible advice. How many people know where Ratan Tata and Narayan Murthy live, which cars they drive or where they holiday ? And please, no choppers for the tycoons to descend on their South Bombay pads.

Same applies to u too by Indi on 13 Jul 2010

Same applies to you and your tribe too. Please declare all the money that has been looted in bofors, food for oil scam etc. Muft ki roti should be banned for 10 janpath and her son. What are they doing having muft ki roti in India. If bofors money from 10 janpath is recovered, 10% of population can be take care in India. CEO's will work hard and earn there money to lead a life. Where are gandhis are not working and are still leading a lavish life with Indian tax payers money. Politicians will never work and they just loot and lead a lavish life. Leave Corporate India alone. Done wag your dirty tail in there business. Follow what you preach to others. Dont make noise. UPA is a burden to India and aam aadmi.

lay off the moral high ground please, Mr. FM by vishwas on 13 Jul 2010

Mr. Mukherjee is overstepping his authority and mandate. It is better if he can limit himself, mostly, to making prudent budget decisions. If an industrialist or a businessman has a good lifestyle, it is because he has earned it. However the FM can make sure he has earned if in a honest way, regardless of how ostentatious their life is. There are things to be done in government to reduce inequality before lecturing the private sector.

very good thinking sir by Dhiren on 13 Jul 2010

Really very good thinking. Sooner you realize it the better for the country. This is another way of preventing Naxal like groups to breed in future.

and what about the public servants? by arun kumar on 13 Jul 2010

Palatial houses, luxury cars, business class travel, 5* star life and on top of this FM is telling the industrialists to follow the path of austerity. Shame.Or he is trying to shout on CEOs so that his own public servants could hear this message.

Austerity by raj on 13 Jul 2010

silly suggestion childish what is the govt doing to control expences Tax payers money used to feed VIP MP Ministers who donot practise what they preach.A sc category M P spending lakhs of money on daughters marriage NO investigation into the wealth of corrupt ministers M P s Loot in the name of commonwealth games

Let the charity begin at home by Gopal on 13 Jul 2010

It is a matter of serious concern and certainly not a matter of pride to say our GDP growth is appreciable. The growth has beeb lopsided. The Government/s collectively are not able to assure every Indian of hygene, safe and potable drinking water and decent shelter. On the contrary, we find that politicians (who promise to espouse the cause of the poor) starting from a corporator roaming about in luxury cars and living in posh bungalows. Will the FM chase such people ? Our MPs/MLAs are no different. Howmany MPs do we have,in our country,whose lifestyle is comparable to that of a common man ? It is equally true of industrial captains who spend thousands of crores on houses for the living of a few in a family. In the name of globalisation and competing with other developed countries, we have totally ignored poor who still remain ( or even worse off) where they were. Take the case of Cong party. How many leaders lead a life style of a common man ? Let the charity begin at home !

Ostentatios Lifestyles and Common Man by august on 13 Jul 2010

It is said that unless everybody, in a country is touched by the calamity ,equitably nothing gets done to clean up the mess.. Corollary, therefore says that unless the lot of the poorest of the poor is financially uplifted ,the country remains shackled under backwardness.. In America, billionaires, Warren Buffet and Bill Gates have therefore affirmatively/interactively launched ventures that help the poor and left out of the world that suffered the financial intrigue that goes with the success of few at the top of the food chain. Mukherjee therefore deserves our applause, may be he should take it to next step and call on the wealthy of India to sacrifice rather than fount their lavish lifestyles. .

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