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 !
-------------------------------------------------------------------------------------------------------------------------------
hemenparekh.in / blogs
31
Jan 2016
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
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