Sunday, December 18, 2011

Tax exemptions for rich costs govt Rs 4.6 lakh cr - The Economic Times

Tax exemptions for rich costs govt Rs 4.6 lakh cr - The Economic Times:

'via Blog this'

NEW DELHI: The subsidy for the poor is dwindling, but this has not deterred the government from lining up corporate houses' pockets.

Last year, the Centre gave away potential revenue of Rs 4.6 lakh crore on account of various tax exemptions and incentives to industrialists, compared to the Rs 1.54 lakh crore on subsidy to poor and farmers.

If you are thinking government is very generous in giving different subsidies to poor, it is a big farce. Government is giving much more to the rich. This is not only in terms of tax exemptions but there are many more things.

This is biggest dilemma of Indian System, even though it looks and government make it look like pro poor but reality is very different.
The real benefit is going to rich middle class, the middle man or business class or Baniya ( in Indian Language). If we look at bank bank balance sheet, NPA is increasing and SBI which has lost almost 40% from pick price from lost year has highest NPA. These NPA are loans to rich which is killing the banks. Poors are not even entertained in these banks, almost 45% of rural population do not have even bank accounts. They are not part of inclusive development.

The whole story about development is for 30% middle and upper class. What ever remains will percolate down to poor. There are no efforts for grow and develop the villages.

Unfortunately poor are getting poor when India is growing, I will be more happy to see India growing at 6%-7% which is inclusive, I don't want 9% for rich excluding poor. Without inclusive growth, there can not be growth. Villages must be developed and there connectivity must be improved.

The only visible thing in development is Roads, roads are getting better and because of private investment phones  has increased but basic necessities remained stagnated. Developing infrastructure is core to the development.

Government must invest more in improving and increasing capacity of railway. Some of gauge conversion projects are going on for last 10 to 15 years. This must end, there must be time bound execution of projects in infrastructure, when minister changes, priorities become different this should go. There should be independent project to project budget and time line for execution. This is only way in successful project management. The quality of services are deteriorating day by day. This is ridiculous. Can not Railway has better management. Project execution and  management should be an independent part of Railways.

The second priority is Airport, India needs 300 airports, everybody is talking. Is there any real movement in the direction of implementing this project. Who will do it? How much years it will take to execute? These are key questions for this project.

There are many more questions, but no answers. One can not expect any answers.

Let us pray for the poor.

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