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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

The Constitution of Your Money

On the eve of India’s Republic Day, we proudly remember the adoption of our Constitution - a document that gave structure, stability and direction to a young nation. It did not promise instant success, but it provided a framework strong enough to withstand crises, disagreements and change. Interestingly, the same philosophy applies to personal finance. Just as a nation cannot function without a Constitution, your money too needs a clear set of rules. Wealth is not built by chance or luck. It...

The Constitution of Your Money

On the eve of India’s Republic Day, we proudly remember the adoption of our Constitution - a document that gave structure, stability and direction to a young nation. It did not promise instant success, but it provided a framework strong enough to withstand crises, disagreements and change. Interestingly, the same philosophy applies to personal finance. Just as a nation cannot function without a Constitution, your money too needs a clear set of rules. Wealth is not built by chance or luck. It is built by discipline, structure and long-term thinking. Right to Financial Dignity The Constitution guarantees citizens fundamental rights. In personal finance, you too have rights - the right to financial security, the right to dignity in retirement, and the right to protect your family’s future. These rights do not come automatically. They are earned through systematic investing, adequate insurance and prudent planning. Ignoring these rights early in life often leads to financial dependence later, something no individual truly wants. Responsibility of Discipline Along with rights come duties. Citizens are expected to uphold the values of the Constitution. Similarly, investors must uphold financial discipline. Saving regularly, investing sufficiently and consistently, avoiding unnecessary debt and living within one’s means are not optional habits - they are duties. Many people want wealth, but few respect the responsibility that comes with building it. Without discipline, even high incomes fail to create lasting financial stability. Managing Risk A strong republic survives because power is balanced across institutions. In finance, this balance comes from asset allocation and diversification. Long-term goals should be supported by inflation-beating assets such as stocks, mutual funds and gold. Money meant for short-term goals must be parked in safer avenues like bank fixed deposits, recurring deposits or debt mutual funds. This allocation ensures that you create wealth while also having liquidity for near-term expenses or emergencies. Equally important is protecting your assets with adequate health insurance and term life insurance. Evolving With Life Our Constitution allows amendments to stay relevant over time. Financial plans too must evolve. Income changes, family responsibilities grow, goals shift and priorities change. A plan made three years ago may not suit today’s reality. Reviewing and updating investments periodically is not a sign of uncertainty, but of maturity. Flexibility ensures relevance without abandoning core principles. Process Over Emotion A republic functions because laws are followed, not because emotions are trusted. Similarly, successful investing depends on process, not panic or excitement. Market highs and lows will come and go. Investors who react emotionally often do more harm than good. Those who follow a clear financial framework remain aligned with their long-term goals. As we celebrate Republic Day, it is worth reflecting that freedom alone is not enough - structure sustains freedom. A nation survives because its Constitution is respected. Wealth survives because financial discipline is respected. Your money deserves a Constitution of its own. (The writer is a Chartered Accountant and CFA (USA). Financial Advisor. He could be reached on 9833133605. Views personal.)

Statehood for Mithila: Political Gambit or Cultural Necessity?

Statehood for Mithila

RJD leader Rabri Devi’s renewed demand for Mithila statehood has electrified Bihar’s political discourse, spotlighting a region long celebrated for its cultural richness yet stymied by poverty and chronic neglect. By raising the prospect of statehood for Mithilanchal—a region spanning 20 districts and home to one-third of Bihar’s population—the former Chief Minister has laid down a political gauntlet, aimed squarely at the BJP-led NDA.


Her call coincides with the Centre’s release of a Maithili translation of the Constitution, a move that BJP leaders have touted as a gesture of respect for the Maithili-speaking populace.


The Mithila region is a paradox. Renowned globally for its Madhubani art and its cultural legacy, it suffers from abysmal socio-economic indicators. Recurrent floods devastate its agrarian economy, and a burgeoning population exacerbates its struggles. The demand for Mithila statehood, first articulated in 1912 during the bifurcation of Bihar from Bengal, has simmered on the margins of public discourse for decades, championed intermittently by cultural activists and regional leaders. Rabri Devi’s intervention marks the first time a senior, non-Mithila politician has embraced the cause.


The inclusion of Maithili in the Eighth Schedule in 2003 was a milestone, celebrated as the culmination of a century-long struggle for linguistic identity, championed by activists and backed by political leaders. Yet, two decades later, promises of development and cultural revival remain unfulfilled. Maithili has languished, with token measures like primary school instruction and support for the Maithili Academy falling by the wayside due to lack of funds and political will. This neglect stems from a calculated resistance to dilute Hindi’s dominance.


The Mithilanchal gambit also plays directly into Bihar’s electoral matrix. With Mithilanchal accounting for over 100 of the state’s 243 assembly seats, the RJD-led Opposition bloc is clearly eyeing a pivotal region where the BJP has a significant foothold. By championing statehood, the RJD seeks to upend the BJP’s narrative, positioning itself as the true custodian of Maithili aspirations. The BJP, which has historically touted its commitment to cultural pride—having added Maithili to the Eighth Schedule under Atal Bihari Vajpayee—may find itself on the defensive.


The call for statehood is not without its ironies. Rabri Devi’s husband, Lalu Prasad Yadav, famously opposed the creation of Jharkhand, declaring its bifurcation from Bihar would happen only over his dead body. When Jharkhand was ultimately carved out in 2000 under pressure from Congress, Lalu’s political authority was dented. Rabri Devi now faces a similar reckoning. Would the creation of Mithila invigorate the region or further fragment Bihar’s administrative and economic capabilities?


The BJP’s immediate response has been tepid, with leaders emphasizing the cultural value of the Maithili Constitution but avoiding the politically volatile statehood debate. This silence may not hold for long, as the INDIA bloc, of which the RJD is a key member, appears poised to amplify the demand ahead of the 2025 elections. Tejashwi Yadav, Rabri Devi’s son and the Leader of the Opposition in the Assembly, has already proposed the establishment of a Mithila Development Authority, signalling the RJD’s intent to anchor its campaign in the aspirations of Mithilanchal.


Yet, practical hurdles loom large. Statehood would require not just political consensus within Bihar but also approval from the Centre, which has been reticent about new state creations in recent years. Moreover, could Mithila sustain itself independently, or would it require substantial federal assistance, potentially mirroring Jharkhand’s struggles post-bifurcation?


The RJD’s gambit seeks to transform an enduring cultural aspiration into a potent political strategy. Rabri Devi’s call has revived an old question: Is statehood the panacea for regional neglect, or does it risk compounding the challenges of governance?

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