Dear Sunil,
My apologies if my mail caused you any inconvenience
I am removing your email id from our Mail List
With Regrets,
Hemen Parekh
(M)=91 – 98,67,55,08,08
From: Sunil Kanwar
[mailto:sunil_kanwar@econdse.org]
Sent: Friday, February 05, 2016 12:19 PM
To: Hemen Parekh
Subject: Re: YOUR OPINION COUNTS MOST
Sent: Friday, February 05, 2016 12:19 PM
To: Hemen Parekh
Subject: Re: YOUR OPINION COUNTS MOST
Please do NOT send these unsolicited emails.
On 5 February 2016 at 11:42, Hemen Parekh <hcp@recruitguru.com>
wrote:
Dear
Business
Leaders
/ Economists / Editors
/ TV Anchors :
Each one of you have considerable
influence over the Government officers in charge of framing policies
As leading " Opinion Makers " , your contribution in
Transforming India , is invaluable
If you believe that my suggestion
detailed below , merits consideration , then I request you to support it in
whatever way you feel appropriate
One of which could be , forwarding
it to your employees / contacts !
Who would not whole-heartedly
support ,
Abolition of
Personal Income Tax ?
With regards,
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
STRUCTURAL
REFORMS ?
Speaking at the
Global Business Summit yesterday , Shri Arun Jaitley said :
" We
will introduce Structural Reforms in the forthcoming Union Budget "
What is the current
structure of Union Budget ?
# SOURCES of REVENUE
* Taxes ( Direct + Indirect )
* Borrowings ( Domestic + Foreign )
* Sale / Leasing of Assets ( PSUs + Natural National Resources )
# DEPLOYMENT of REVENUE
* Administrative Expenses ( Salaries / Pensions / Maintenance / Subsidies
, etc )
* Interest ( + Principal Amount ) on borrowings
* Developmental Expenses ( Creation of new Assets / Infrastructure )
* Lending
Broadly speaking ,
this is the current structure
Most of the time ,
all that the successive Finance Ministers have done is to slightly " Increase / Decrease " the " Sources and /
or Deployment " of the funds , here and there
Once in a while ,
some Finance Minister , even introduced altogether NEW source or a NEW
way to spend the revenue !
But so far , no one
has attempted to change the FUNDAMENTAL
STRUCTURE !
I wonder whether
Shri Jaitleyji's BUDGETARY REFORMS would
incorporate the following Structural Changes for which , I have sent to him (
and to most of his cabinet colleagues ), dozens of emails ? :
* Total
abolition of Personal Income Tax ( Revenue
Loss of approx Rs 2.5 lakh*crores )
*
Introduction of 2% Bank Transaction Tax - BTT ( Revenue Gain of Rs 15 lakh*crores )
* Decreasing Corporate tax slab-rates based on
No of permanent employees ( to encourage job creation )
* Perpetual Amnesty Scheme ( no questions asked
as to the source for CASH deposits in Jan Dhan Accounts , if
funds from these Accounts are invested in Govt approved INFRASTRUCTURE SPVs )
So far , Rs 30,000 Crores have been deposited in Jan Dhan Accounts . With introduction
of this REFORM ,
that figure will rise a thousand times to Rs 30,000,000 Crores , within one
year !
These investments will generate 10 million jobs
each year and raise our GDP to 10 % in 2016-17 !
*
Transferring 10% of GST ( ie 1.8 % out of 18 % ) to PPF accounts of the buyers
( increase Domestic Savings )
* Embedding
of RFID chips in Currency Note ( read Kurzweilai.net ) to
solve twin problems of BLACK MONEY and
CORRUPTION
* Introducing
" Budgeting By Objectives " ( instead
of Monetary Allocations, setting Physical Targets for Ministers )
*
Quarterly Performance Review of " Targets vs
Actual Achievements " to be published on Govt web sites
* Thru an Online Opinion Poll , involving citizens in
framing of the Ministry-wise Physical Targets before the budget
After second World
War , German Economy was in shambles
68 years later ,
Germans are still thanking their then finance minister , Ludwig Erhard , for
the miracle ("Wirtschaftswunder," German for
"economic miracle") he brought through his " Out of the
Box " reforms to revive the German Economy
I hope Shri Jaitley
displays similar courage on 29 Feb 2016 - even
if he is not bothered being remembered or not !
------------------------------------------------------------------------------------------------------------
www.hemenparekh.in / blogs
31 Jan
2016
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
--
Sunil Kanwar
Professor
Department of Economics
Delhi School of Economics
University of Delhi, Delhi 110007
India
Tel; 91-11-27667005 (ext. 146)
Fax: 91-11-27667159
Email: sunil_kanwar@econdse.org
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