Professional Documents
Culture Documents
Arthakranti
Vision
Vasudhaiv Kutumbakam
Arthakranti
Social Reality Our nation is like a huge ship sailing in the middle of the sea. Just when it looked like sailing smooth, it hits a hidden rock suffering damage causing water to rush into compartments from the bottom. The Unorganized Class at the bottom is in panic and is running around screaming for survival. The only way is to move upwards. The Organized Class sleeps behind closed doors, feeling secured with pensions, insurance and provident funds. They do hear an odd scream but pretend not. The rich and Elite Class the blessed few are up enjoying the view. They do not even know that the ship is sinking. But this ignorance real or fake will not stop any of us from sinking in the worst scenario.
Arthakranti
Economic Reality
Let us say our economy is like a multi storied building. The overhead water tank on the roof is the Treasury. The floors from the top downwards are the various heads of government expenditure in order of priority. There are pipes leading water down from the overhead tank to the various levels - their taps are dry. On investigating, we realize that the overhead tank is only half filled and the lower levels will not get any water unless the tank fills completely. This gap in the overhead tank is the Fiscal Deficit. We check the main reservoir on the ground floor and find that it does contain a lot of water. The pump is running at full speed. The pipes which lead this water up into the overhead tank the taxation system - are so impossibly twisted, choked and corroded that they leak at many points. A lot of water is leaking out of these pipes and that is why the overhead tank does not ever get filled up!
Arthakranti
Effects of Fiscal Deficit on Local Industry
Unemployment
Social Insecurities
Reduced Rural Purchasing Power
Poor Infrastructure
Attract FDI
Subsidies Curbed
Fiscal Deficit
Arthakranti
Effects of Fiscal Deficit on Credit Cycle & Government Revenue
Unemployment
Inflation
Deficit Budget
Fiscal Deficit
Social Insecurities
Conservative Lending
Hard Credit Policy Purchasing Power Reduced NPAs Increase Inadequate Tax Revenue to Govt. Low Demand / Recession
Arthakranti
Effects of Internal Borrowings on Fiscal Deficit
Internal Borrowings
Fiscal Deficit
Arthakranti
A design towards Principled, Prosperous & Peaceful living Effects of Fiscal Policy & External Borrowings on Credit Policy & Banking System
External Borrowings
Expensive Capital
Fiscal Deficit
Arthakranti
Fiscal Deficit
Pressure to Disinvestment
A design towards Principled, Prosperous & Peaceful living Effects of Fiscal Deficit on Disinvestment Policies & Reduced Social Spending
Social Insecurities
Arthakranti
Effects of Fiscal Deficit on Anti-Social Industries
Social Insecurities
Fiscal Deficit
Arthakranti
Uncompetitive Local Industry / Trade
A design towards Principled, Prosperous & Peaceful living Effects of Fiscal Deficit on Taxation System & High Denomination Currency
Social Insecurities
Fiscal Deficit
Inadequate Tax Revenue to Government
Poor Governance
Parallel Economy
Corruption
Black Money
Non-Traceable Transactions
Inflation
Fiscal Deficit
Arthakranti
Effects of Fiscal Deficit on Credit Cycle & Farmers Suicides
Farmers Suicides
Social Unrest
Inflation
Deficit Budget
Fiscal Deficit
Arthakranti
Flawed Taxation System Narrow base and limited coverage of Direct Taxation Direct to Indirect tax ratio is 40:60 Inequitable and hence Regressive Non-Productive Uncertain Inelastic Uneconomical Complex nature of taxes Tax laws open for interpretation
Arthakranti
Currency Denomination
Country
Highest Denomination
USA
40,000 $
100 $
400
UK
20,000
50
400
Japan
40,00,000
10,000
400
India
Rs. 37,000
Rs. 1,000
37
Arthakranti
Arthakranti
Highest Three Denominations account for 91% of the total Currency Money while Per Day Income of 78% Population is Less than or Equal to Rs. 20
Arthakranti
ArthaKranti Proposal
Withdrawal of existing Taxation System completely (except Customs and Import Duties) Every Transaction routed through a bank will attract a certain deduction in appropriate percentage as Bank Transaction Tax i.e. Single Point Tax Deducted at Source (say 2 %) This deduction is to be effected on receiving/credit account only
This deducted amount will be credited to different Government levels like Central, State and Local (as say, 0.7%, 0.6% and 0.35% respectively)
Transacting Bank will also have a share in the deducted amount as it has to perform a key role (say 0.35%) Cash Transactions will not attract any tax Withdrawal of High Denomination Currency (above Rs. 50) Government should make legal provisions to restrict cash transactions up to a certain limit (say Rs. 2000)
Arthakranti
Effects of ArthaKranti Proposal
Adequate Revenue to Government
Bank Transaction Tax: the ONLY Tax, Deducted Automatically (say 2%)
Legal Provision Made Restricting Cash Transactions up to a Certain Limit (say Rs. 2000)
Arthakranti
Effects of ArthaKranti Proposal
Adequate Revenue to Government
Bank Transaction Tax: the ONLY Tax, Deducted Automatically (say 2%)
Legal Provision Made Restricting Cash Transactions up to a Certain Limit (say Rs. 2000)
Arthakranti
Effects of ArthaKranti Proposal
Adequate Revenue to Government
Bank Transaction Tax: the ONLY Tax, Deducted Automatically (say 2%)
Arthakranti
Effects of ArthaKranti Proposal
Adequate Revenue to Government
Stimulated
Prices Drop
Legal Provision Made Restricting Cash Transactions up to a Certain Limit (say Rs. 2000)
Arthakranti
Effects of ArthaKranti Proposal
Adequate Revenue to Government
SLR Revised
Bank Transaction Tax: the ONLY Tax, Deducted Automatically (say 2%)
Legal Provision Made Restricting Cash Transactions up to a Certain Limit (say Rs. 2000)
Arthakranti
Effects of ArthaKranti Proposal Anti-Social and AntiNational Elements Effectively Checked
Employment Opportunities
Empowered Government
Effective Governance
Appropriate Subsidies
Bank Transaction Tax: the ONLY Tax, Deducted Automatically (say 2%)
Legal Provision Made Restricting Cash Transactions up to a Certain Limit (say Rs. 2000)
Arthakranti
Increased Purchasing Power Building Individuals Credibility Cheap and Easy Credit Availability Revenue for Banking Budgetary Provision for Political System
Bank Transaction Tax: the ONLY Tax, Deducted Automatically (say 2%)
EMPOWERED INDIA
Creativity FREED from tax Manipulation
High Denomination Currency is Removed (say above Rs. 50)
Arthakranti
Arthakranti
Jai Hind!