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Saturday, September 1, 2018

Economic reforms

We need to give a big applause to all the reforms that have been carried out and executed with lot of difficulties in the interest of long term system, rules , procedures based economic development.

The details are narrated below for the skeptics without  spicing them even with any data.

But having said that because the focus of the government along with the  functioning on the above lines  have  increased the expectations of growing middle class and there are some short comings there which can be easily rectified only by this government  and in certain cases the sooner it does those things the better for the party, votes  and government.

I have mentioned them as points at the end . 

First the reforms have not been mere tinkering here and there or just cosmetic changes to existing modes of operations or mere over hyped projections.

Second reforms are at macroeconomic level and therefore it is possible that the micro impacts and inadequacies will get only proportional attention and will be addressed but they may not be or cannot be prioritized. Though it is harsh on the victims and those at the receiving end.

However, in the overall interest, especially, of a nation as vast and varied in almost all parameters, even trying to effect drastic macro economic reforms is a very difficult and daring political risk.

The task is rendered further difficult through a predominantly ill informed, misinformed and anti-development attitude imbued mainstream media who set the negative narratives for the illiterate and semi-literate masses as well as a easy tool to provoke some victims by exaggerating and ascribing political motives to the suffering of those victims.

Besides all these, the very foundation of bringing in reforms depends on creating primarily a paradigm shift in the very perspective of economic activities with a great movement towards positive growth strategies i.e. from excessive politics in government towards governance; from anarchy towards rules, systems, processes, procedures based functioning; from clandestinely favoring the few towards actually benefiting the many; from blindly believing and parroting the narratives towards properly educating through producing impartial data on tangible outcomes on ground.

To all those who are or were experiencing discomfort through uncertainty, I am sure these two
short speeches will give much clarity. 

Actually one short speech made in English and well translated by a sincere Chartered Accountant in Tamil.

I wish someone translates them in all other regional languages in India.

1. Many countries are moving around with a begging bowl offering even citizenship for a few crores and a list of many other incentives.

2. Let us be clear the more funds coming into India the  easier it is for the economy. We , all Indians, know that huge amounts of money of Indians [ let us not bother about the label of political party or the name of the corporate house that money carries] is lying all over the world either unutilized or utilized for other nations or parked in tax havens etc.

3. Why can't we offer one time amnesty for declaration of all undeclared wealth of Indians held overseas with some % tax without any harassment ( for amounts over 100 crs) or  less % tax if they declare and invest in India either in government or non governmental entities with a clause if after December 2018 if any such undeclared wealth of any Indian is found overseas that would be nationalized and will be used for national infrastructure development and/ or emergency or calamity fund. At any cost no names will be revealed for any political reason.

4. We can also create an exclusive infrastructure fund corporation  wherein such funds will be parked as infrastructure bonds for next 5 to 10 years fetching a nominal interest.
In short we will be easing the fund crunch by legalizing the untaxed and undeclared wealth .

5. Many big business houses as well as all unscrupulous politicians will use this opportunity to legalize their wealth and most important thing here is our economy stands to benefit.

6. With the inflow of such funds  we can also announce a big vote Capturing magic
Abolish income tax for all salaried class up to annual income of Rs.12 to 25 lakhs  with effect from April 2018 so that you may have to refund the amount and very nominal tax up to one crore.

7. Most middle class people work hard get a small apartment and then their children get one. After the death of the parent the poor son or daughter face more headaches for inheriting a hard earned  property or FD.
Stop harassing  housing  loan  borrowers for small delays.

8. I have another big suggestion for economy but that can wait for 2019 election

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