Arthakranti_2011-Sept-24_English

ArthakrantiA design towards Principled, Prosperous & Peaceful living

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Wednesday, April 12, 2023


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Presentation

Vision

Social Reality

Economic Reality

Current Reality Loops

Proposal

Effects of Proposal

Strategy

Social Security Scheme

Linked Proposals

Empowering Democracy

Animations

Credit Establishment

Vision

Flawed Taxation System

Economic RealitySocial Reality

Appeal

FDICredit

Expansion

Local Industry

Credit Cycle

Farmers’ Suicides

Internal Borrowings

Banking System

Disinvestment

High Denomination Currency

Proposed System

Statistics

CalculationsCurrency

Denomination

Bank Money Direct & Indirect tax

Revenue after BTT

Proposal

Anti-Social Industries

Commodity Prices

Appeal

Terrorism Analysis Strategy


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Vision

Vasudhaiv Kutumbakam

One Economy

Capital Formation

Revenue for Effective

Governance


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Social Reality


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Economic Reality

Interest on External Debt

Cost ofrunning Government

National Security

Infrastructure, Agriculture,Needs of Common man

ComplexTaxation system


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Effects of Fiscal Deficit on Local Industry

Fiscal Deficit

Poor Infrastructure

Policies Influenced by Foreign Interests

Attract FDI Subsidies Curbed

Uncompetitive Local Industry /

Trade

Unemployment

Local Agriculture Rendered

Uncompetitive

Reduced Rural Purchasing

Power

Social Insecurities


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Effects of Fiscal Deficit on Credit Cycle & Government Revenue

Fiscal Deficit

Deficit Budget

InflationUncompetitive Local Industry /

TradeUnemployment

Hard Credit Policy

NPAs Increase

GDP Growth Slows Down

Conservative Lending

Inadequate Capital Supply to

Economy

Purchasing power

reduced

Low Demand / Recession

Inadequate Tax Revenue

to Govt.

Social Insecurities


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Effects of Internal Borrowings on Fiscal Deficit

Fiscal Deficit

Internal Borrowings

Spent on Non-Developmental

Activities

Inadequate Tax Revenue to Govt.



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Effects of Fiscal Policy & External Borrowings on Credit Policy & Banking System

Fiscal Deficit

External Borrowings

National Policies Influenced

Threat to Local Banking System

Expensive Capital

Lending Rates Increase

Bank Interest Rates

Increase

Tax Rebate + High Interest Rates on

Savings


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Effects of Fiscal Deficit on Disinvestment Policies & Reduced Social Spending

Fiscal Deficit

Pressure to Disinvestment

Threat to Organized

Employment

Social Insecurities

Purchasing Power Reduced

Govt. Control Lost in Essential

Commodities [e.g. Oil, Medicines etc.]

Severe Impact on Weaker Sections

Scope for Market ExploitationCost Burden

Passed onto Common Man

Public - Private Partnership

e.g. Toll

Reduced Social Spending


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Effects of Fiscal Deficit on Anti-Social Industries

Fiscal Deficit

Increased Congestion, Accidents, Pollution

Social Insecurities

Inadvertent Promotion of Anti-Social Industries

Promotion of State Run Lottery

Schemes

Increase in oil Import Losses

(Subsidies)

Promoting Increased use of Oil Automobiles

Lack of infrastructure /

public amenities(e.g. public transport

system)

Promotion of Liquor, Gutkha,

Cigarettes

Direct Ill Effects on

Public Health


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Effects on Taxation System & High Denomination Currency

Fiscal Deficit

Inadequate Tax Revenue to

Govt.

Tinkering of Taxation System

Uncompetitive Local Industry /

Trade

Expensive Capital


Inflation

Black Money

Parallel Economy

Poor Governance

Social Insecurities

Corruption

Non Traceable Transactions

Ease of Cash Transactions

Large Denomination

Notes

Less Use of Banking

System


Inadequate Capital

Supply to Economy

Poor Credit / Capital

Formation

High Input Costs

Tax Evasion

Fiscal Deficit


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Effects of Fiscal Deficit on Credit Cycle & Farmers’ Suicides

Fiscal Deficit

Deficit Budget

Inflation

Hard Credit Policy

Social Unrest

Less Use of Banking System

Poor Credit / Capital Formation

Individual’s Credibility NOT Established

Low Credit Supply to Agriculture

Unjust Borrowings from Private Sources

Farmers’ Suicides


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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

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Statistics

How should it be… Show


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Currency Denomination

CountryPer Capita

IncomeHighest

DenominationPer Capita Income /

Highest Denomination

USA

UK

Japan

India

$40,000

20,000 £

40,00,000 ¥

Rs. 46,000

$100

50 £

10,000 ¥

Rs. 1,000

400

400

400

46

Currency Denomination Distribution


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Credit Establishment

Less Use of Banking System Obstructs Credit Registration of a lot of Citizens in

the National Economy


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Withdrawal of High Denomination Currency (say above Rs. 50)

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 (say 0.7%, 0.6% and 0.35% respectively)

Transacting Bank will also have its share in this deducted amount as the bank has a key role to perform (say 0.35%)

Cash Transactions will not attract any tax

Government should make legal provisions to restrict cash transactions up to a certain limit (say Rs. 2000)


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Effects of Arthakranti Proposal

Bank Transaction Tax (Say 2%)

High Denomination Currency is Removed(Say above Rs. 50)

Legal Provision Made Restricting Cash Transactions

up to a Certain Limit(Say Rs. 2000)

Existing Cash Deposited in Banks &

Attracts BTT

High Value Cash

Transactions Not Practical

Increase in Banking

Transactions

Tax Revenue Increases by Orders

of Magnitude

Adequate Revenue to

Govt.

Adequate Revenue to Government

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Tax Collection is Simplified

Opportunities for Corruption

Eliminated

Black Money Eliminated

Anti-Social and Anti-National Elements

Effectively Checked

Fake Currency Eliminated


Effectively Checked







Attracts BTT


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Increase in Banking

Transactions

Part of BTT goes to Banks

Net Banking Revenue Increases

Globally Competitive

Interest Rates

Cheap and Easy Capital

Purchasing Power of Society

Increased

Market Demand Boosted

Industry Trade, Supply

Stimulated


Effectively Checked



Stimulated






Attracts BTT


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Commodities and Services are FREED from Tax Influence

Prices Drop

Focus Shifted to Innovation from

Tax Manipulation


Stimulated

Cheap and Easy Capital

Purchasing Power of Society

Increases

Market Demand Boosted

Anti-social and anti-national elements

effectively checked


Effectively Checked



Stimulated

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Attracts BTT


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Black Money is Converted into

White

Tax Revenue Increases by Orders

of Magnitude

SLR Revised

Money Supply Regulated


Stimulated

Adequate Revenue to

Govt.


Effectively Checked



Stimulated






Attracts BTT


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Adequate Revenue to Govt.


Stimulated


Effectively Checked

Fiscal Deficit

Recovered

Govt. Debts Checked

Empowered Government

Appropriate subsidies

Globally Competent

Agro-Segment

Social Security Restored

Employment Opportunities

Budgetary Provision for

Political System

Cleansed Political System

Black Money Eliminated

Effective Governance






Attracts BTT


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Revenue for Banking

Cheap and Easy Credit Availability

Decentralized Revenue

Collection System

Elimination of Black Money

Social Security Scheme

Tax Burden Reduced with BTT

Budgetary Provision for

Political System

Elimination of Means & Motives

for Corruption

Adequate Revenue to run Govt. Programs

EMPOWERED INDIA

Creativity FREED from Tax

Manipulation

Building Individual’s Credibility

Industry, Trade, Supply

Stimulated


Effectively Checked

Increased Purchasing

Power






Attracts BTT


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Jai Hind!


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BackDirect & Indirect Tax Revenue forCentral & State Governments

YearCentre Taxes

Direct Indirect Total

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

69197 117863 188603

83085 133181 216266

105090 149258 254348

132771 172187 304958

165206 200949 366150

230192 243320 473512

312198 280949 593147

345000 282949 627949

370000 271079 641079

State Taxes


13309 99921 121887

17714 108578 136634

20096 118920 153750

23375 133654 180417

30211 180235 210446

37579 212932 250511

43409 240940 284349

48125 293774 341899

53683 331698 385381

Centre & State Taxes


82506 226441 308947

100799 252101 352900

125186 282912 408097

156146 329229 485375

195412 381184 576596

267771 456252 724023

355607 521889 877496

393125 576723 969848

423683 6027771026460

All figures in Rs. Crores

2010-2011 430000 316651 746651 174266 452881 627147 604266 769532 1161241


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BackDistribution of Central Govt. Direct & Indirect Tax Revenue

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Centre Direct Tax

Centre Indirect Tax


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BackDistribution of State Govt. Direct & Indirect Tax Revenue

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

State Direct Tax

State Indirect Tax


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BackDistribution of Centre & State Govt. CombinedDirect & Indirect Tax Revenue

0

100000

200000

300000

400000

500000

600000

700000

800000

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Centre & State CombinedDirect Tax

Centre & State CombinedIndirect Tax


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BackCentre & State Govt. - Direct & Indirect Tax revenue Distribution 2009-2010

56%

44%

Centre and StateCombined Direct Tax

Centre and StateCombined IndirectTax


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Currency Denomination Distribution

Year Coins Rs.2 Rs.5 Rs.10 Rs.20 Rs.50 Rs.100 Rs.500 Rs.1000

2001-2002 6270 538 1264 11989 1531 35601 118141 68512 7179

2002-2003 6972 483 1739 9088 3425 35191 115386 93813 15971

2003-2004 7199 472 2276 7750 4383 33027 121442 122938 27473

2004-2005 7351 462 2086 6770 3876 29941 123282 152728 42082

2005-2006 7651 451 1980 6274 4077 27842 134637 182332 64346

2006-2007 7761 447 1887 7155 4178 27951 135444 225400 93676

2007-2008 9125 636 2111 9333 4108 26508 134575 263108 141219

2008-2009 9657

2009-2010 10872

2010-2011 12328 851 3430 21288 6040 15980 140243 445311 302713

665 2271 12222 4399 24440 137028 308304 191784

698 2233 185636 4681 21057 138364 364479 238252



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BackCurrency Denomination Distribution2010-2011

47%

15%

32%

1%0% 2%

2%1%

Coins

Rs.2

Rs.5

Rs.10

Rs.20

Rs.50

Rs.100

Rs.500

Rs.1000

Highest Three Denominations account for 94 % of the Total Currency Money while 78% of our Population earns Rs. 20 or less a day.


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BanksPrimary Deposits

Cash ReservesLoans / Derivate

Deposits

Credit Expansion through Banking System

A 20001 200 18002

B 1800 180 1620

C 1620 162 1458

D 1458 145 1313

E 1313 131 1182

Eventually 20,000 2000 18,0003

1 - Original Primary Deposit2 - Original Excess Reserves3 - Total Capital Formation through Credit Expansion with Original Primary Deposit of Rs. 2000


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ProductMFG Cost

Taxes

Analysis of Commodity Prices

Cement 80 ~ 160

Motorbike

21,000 21,000

Petrol 24.0 / lit 26 / lit

Back

All figures in rupees

Sales Price

~ 240

42,000

50 / lit

Chinese Cost

72

25,000

-

Diesel 26 / lit 14 / lit 40 / lit -


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Sample Calculations

Narrow Money (M1) = Currency with public + Demand deposits

For year 2010-2011Currency with public = 9,50,000Demand deposits = 7,18,000Narrow Money (M1) = 16,68,000

Assuming 20% of M1 (Transaction Money) in daily transaction,Amount of money in daily transaction (D1) = 3,33,600Amount of money in daily transaction (Y1) = D1*365 = 2,20,000*365 = 12,17,64,000

Considering 2% (notional) Transaction Tax in which share of Centre Government 0.7%, State Government 0.6%, Local Corporation 0.35%.

Revenue for Centre (0.7%) and States (0.6%) Combined = Y1 * 1.3/100 = 12,17,64,000 *0.13 = 15,83,900

Revenue for States (0.6%) =~ 7,31,800Revenue for Local (0.35%) =~ 4,27,000Revenue for banks (0.35%) =~ 4,27,000



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Sample Calculations

Assuming 20% of M1 (Transaction Money) in daily transaction,Amount of money in daily transaction (D1) = 3,33,600Amount of money in daily transaction (Y1) = 12,17,64,000

Suppose we change the share% -Central Government 1.0%,Revenue for Central Govt. (1.0%) = 12,17,640State Government 0.6%, Revenue for States (0.6%) = 7,30,584Local Corporation 0.3%, Revenue for Local Corp. (0.3%) = 3,65,292Banks 0.1%, Revenue for Banks (0.1%) = 1,21,764

2005-2006, per capita net national product Rs. 20,734

State Per capita net state product (Rs.)

Delhi 53,976

Bihar 5,772

Maharashtra 32,170

Central Govt. will use this revenue to reduce disparity



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State Per capita net state product (Rs.)

Greater Mumbai 65,625

Pune 54,539

Nagpur 42,016

State Govt. will use this revenue to reduce disparity

Sample Calculations

Nashik 29,680

Nandurbar 15,766

Per capita net domestic product of Maharashtra Rs. 32,170


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CountryTransaction Money

Money Supply

Currency (A)Ratio B ÷ A

Demand Deposit (B) Total (A + B)

47.7 Bi Au $ 220 Bi Au $ 267.7 Bi Au $Australia 4.61

4.73 Tr Yu 21.18 M Yu 25.91 M YuChina 4.48

75.6 Tr Yen 445.8 Tr Yen 521.4 Tr YenJapan 5.89

35 Tr Won 101 Tr Won 136 Tr WonSouth Korea 2.88

4.3 Bi Nz $ 27.24 M Nz $ 31.54 M Nz $New Zealand 6.33

4900 Bi Ru 14900 Bi Ru 19800 Bi RuRussia 3.04

23 Bi Sing $ 94 Bi Sing $ 117 Bi Sing $Singapore 4.09

53.5 Bi £ 1029.5 Bi £ 1083 Bi £UK 19.24

951 Bi $ 961 Bi $ 1912 Bi $USA 1.01

9500 Bi Rs. 7180 Bi Rs. 16680 Bi Rs.India 0.76


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Dependency on FDI


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Dependency on FDI

India

China


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BackRevenue of Centre & State Governments

(Combined)

2010-2011 BudgetProbable Tax Collection Under T.T. System [0.7% Share

Of the Centre + 0.6% Share of the States]

Total Revenue 11,61,240 15,83,000 + Import Duties 31,66,000 + Import Duties

At 20% Transaction Ratio At 40% Transaction Ratio

Currency Money Demand Deposits

9,50,000 7,18,000

Total Narrow Money (M1 = Currency Money + Demand Deposits)Rs.16,68,000 Crores – with a moderate assumption of 20 to 40%of this amount to be active in daily transactions.



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Revenue of Mumbai Municipal Corporation

As per existing Tax systemRef: Corporation Budget

2007-2008

Probable Tax Collection Under T.T. System

(@ 0.35% Share of Local Body)

8,550 0.0035*35,85,000 = 13,000

Cheques worth Rs.~36,85,000 Crores cleared inMumbai in the year 2007-2008.



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ArthakrantiPratishthan

Advertising Campaign

Public Presentation

Media Tools

The Indian Citizen

Business Leaders

Political Leaders & Parties Experts

Members of Parliament

The Arthakranti Doctrine

The Citizens Charter of Demand

The Arthakranti National Reform Bill Implementation

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Media

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• Implementation of Arthakranti proposal. It’s Effects are– Enough revenues with government to make legal provision of funds for political system.– High valued cash transactions difficult.– Increase the use of the banking system.– Effective taxation system leading to eradication of black money.

• Provision for funding of the political system– Funding of the political parties based on a per person amount for the entire population for a five year period. Say Rs.100/person. – Total population is to be considered while making this provision– The actual fund availability will be in proportion to the actual voting percentage. – This funding will be available only to Registered political parties securing more than a certain minimum percentage of votes cast Sample Calculation for funding political parties

• Giving healthy monthly allowances to the elected representatives The proposal for allowance of elected representatives

Empowering democracy


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Empowering democracy Calculations

• At the Central Level:– Total provision for the entire population for the period of 5 years - 121 Cr * 100 (Per person Amount) = Rs.12100 Cr.– Provision per year – Rs.2420 Cr.

• The total Amount available in proportion to a total valid votes percentage - Say 60%

– Amount available for 5 year period- 12100 * 60/100 = 7260 Cr.

• At the State Level:– State population say 10 Crores– Funds provision for 5 year period = 10 Cr * Rs.100 = Rs.1000 Cr.

• At the Local level:– Population of the urban areas is say, 10 lakh– Funds provision for 5 year period = 10 L * Rs.100 = Rs.10 Cr.

• Actual funding will depend upon the total percentage of votes cast.

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Empowering democracy Allowance for elected representatives

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• For MPs at Rs 10 Lakh/month • For MLAs at Rs 5 Lakh/month

• For Corporators at Rs. 1,00,000/month

• For Village Development Officer at Rs. 10,000/month

• The spending with these provisions will be - At the central level -- 785*10L*12 = Rs. 942 Cr. against a projected revenue of ~Rs. 7,46,651 Cr. = ~0.13 % of the revenue

- At the state level (e.g. Maharashtra) – 366*5L*12 = ~Rs. 220 Cr. against a projected revenue of

~Rs. 50,000 Cr. = 0.44 % of the revenue

- At the local corporation level (e.g. Aurangabad) –100*1,00,000*12 = Rs. 12 Cr. against a revenue of ~Rs. 250 Cr.

= 4.8 % of the revenue


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Eradication of Black Money

Appropriate remuneration for

elected representatives at all levels

Legal provision of funds for politics at all

levels

Provision of funding for political parties

based on population

Effective funding available for political parties depends

upon voting percentage

Funding to political parties based on the percentage of votes

won

Decreased dependence on

corruption and criminals

Assured clean

funding

Transparency in politics

Dignity & public trust restored

Politics professionalized

as the qualified people

will take it up

Decreases ill-influence

of local parties in national politics

Political parties interested

in increasing voting

Politics focused on real issues

and national interests

Increased stability of

government

Improved functioning and decision making

Increased law and order

Improved governance

Empowering democracy


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Jai Hind!


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• A Social security identification (SSID) is issued to every Indian Citizen.

• To begin with the beneficiaries of the Social Security Allowance Scheme will be all adult citizens of India beneath the poverty line.

• For every deserving adult, a fixed amount (linked to DA), Social Security Allowance, is credited per month into a unique bank account linked to the SSID - Say Rs.2000/ pm -- Based on Food (Rs.900/-) + Shelter (Rs.500/-) + Clothing (Rs.300/-) + Health (Rs.300/-)

• Government will remove all non-merit subsidies thus freeing up revenue to pay the Social Security Allowance to the deserving citizens

• All Social security allowance beneficiaries can get credit of Rs.50,000/- (upper limit) from banks

• Restrictions to ensure correct usage – - No rights to SSA beneficiaries on income for hereditary property - SSA amount can’t be used as security against any other loan

• Uniform implementation throughout the country

Social Security Proposal


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Social Security proposalCalculations

• In first phase, scheme will be implemented for people below poverty line.

• Number of people below poverty line (monthly income below Rs.300/-) is 30 Cr.

• Total monthly expenditure = Rs. 2000 * 30 Cr = Rs.60,000 Cr

• Total yearly expenditure = Rs. 60000 Cr * 12 = Rs.7,20,000 Cr

• Excluding current expenditure of Government over subsidies of - Rs. 1,5,000 Cr, additional yearly expenditure will be - 7,20,000 - 1,50,000 = Rs. 5,70,000 Cr.

• Considering current national income of Rs. 40,00,000 Cr, this additional expenditure would be ~15% of national income.


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SSA beneficiaries will not have right on

income from hereditary property

Bank account for SSA

(associated with SS Code)

SSA can’t be used as

security for any other loan

Unique SS code for

every citizen

Maximum Credit Limit

For SSA beneficiaries up to say, Rs. 50,000

Withdrawal of Non-merit subsidies

(Central and State)

Social Security Allowance (Say Rs.1500 monthly)

(linked to DA)(Food, clothing, shelter,

health insurance)

Saved Gov. Revenue Expenditure

Effective implementation of child welfare laws & schemes

Increase in Purchasing

power of the poor people

Increased use of

Banking system

Credit available

to the poor

Credit / Capital expansion

in the banking system

as a whole

Opportunities of Corruption are

reduced (PDS, fuel etc.)

Price distortion removed

Assured dignified

existence for every citizen

Hugely increased demand

for goods and services

(Necessities)

Establishment of Individual credibility with bank

Increased Business / Employment opportunities

locally

Farmers’ suicide checked

Decreased Social Unrest (reduced

Naxalism, terrorism, extremism, etc.)

Balanced Development

(Rural and Urban)

Dissemination of Population

Social security

Market driven quality supply

of goods & services

Improved quality of life


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BackGovernment Officials

H.E. Smt. Pratibhatai Patil, Hon. President of India

(Personal meeting twice)

Dr. Montek Singh Ahluwalia, Deputy Chairman, Planning

Commission (Book)

Dr. Bhalchandra Mungekar, Member, Planning Commission

(Presentation)

Dr. Parthasarathy Shome, Ex-Chief Economic Advisor to

the Union Finance Minister (Presentation North Block)

• Dr. Adarsh Kishore Saxena - Ex-Union Finance Secretary (Presentation in the presence of Smt. Pratibhatai Patil)

• Mr. Johny Joseph - Chief Secretary, Maharashtra (Presentation To CM, Maharashtra )

• Mr. Agarwal - Finance and Planning Secretary, Maharashtra (Presentation To CM, Maharashtra )

• Mr. Sangith Rao - Principal Secretary, Maharashtra (Presentation To CM, Maharashtra )


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Economists & Experts

Dr. D. R. Pendse Dr. Narendra Jadhav

M N Chaini

• Chandrahas Deshpande

• Sunil Bhandare

• Jairaj Salgaonkar

• V. M. Govilkar

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P B SawantJustice – Supreme Court

R A Mashelkar


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Political Leaders

Congress

Manmohan Singh, Hon. Prime Minister(Book)

P. ChidambaramUnion Finance Minister(Book)

Sushil Kumar Shinde, Union Power Minister

Pawan Kumar Bansal, Minister of State for Finance (Presentation)

Prithviraj ChavanMOS, PMO’s Office(Meeting)

Vilasrao Deshmukh, CM, Maharashtra (Presentation)

• V George P.A. to Smt Sonia Gandhi (Presentation)

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Political Leaders

BJP

LK Advani Bhairon Singh Shekhawat

Yashwant Sinha Arun Shourie Sushma Swaraj

Balbir Punj SS Ahluwalia Rajeev Chandrashekhar

Nitin GadkariGopinath Munde

Sompal Shastri Vinay Sahasrabuddhe

Sudheendra Kulkarni

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Political Leaders

Shiv Sena

Mohan Rawle Suresh Prabhu

Political leaders MNS

Raj Thackeray Rajan Shirodkar

• Shweta Paralkar

• Shishir Shinde

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Political Leaders

NCP

Sharad Pawar Jayant Patil

Political leaders CPI

D Raja

• Dr. Kango

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Industrialists

Deepak GhaisasI-Flex solutions

Narayan MurthyInfosys

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• Arvind Padhye – TCS Pune – Center Head


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Media Experts

Kumar KetkarLoksatta

Raju ParulekarE TV

Prem Shankar JhaHindustan Times

• Rajeev Khandekar – Star TV

• Yamaji Malkar - Sakal

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Creative Artists

Vijay Tendulkar Mangesh Tendulkar Sachin Pilgaonkar Ashok Saraf

Nina Kulkarni

Nivedita Saraf

Mohan Joshi Kiran Shantaram Atul Parchure Prashant Damle

Swapnil Bandodkar

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Educational Institutions

• Goa Commerce college

• Osmania university

NGOs

• Loksatta

• Maitri

• i-Watch

• Prayas (Reli group)

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Terrorism in India


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How can we tackle this problem?


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Poverty

Reduced Social

SpendingUnemployment

Reduced Purchasing

Power


Tax Evasion

Under-utilized Banking System

Inadequate Money Supply to Economy

Individual’s Credibility not

Established

High Commodity Prices due to Heavy

Indirect Taxes

Deprivation – from Resources and Means

(Credit) to Acquire Them

No Access to Credit

Lack of Education &

Skills

Terrorism Analysis


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Loss of faith in peaceful, democratic process, no hopes of getting ‘justice’ without resorting

to violence

Deprivation, Extreme Disparity, Envy

PovertySocial Oppression

(Communal / Religious / Caste / Linguistic etc.)

Sense of Hurt, Damage to Self Esteem, Indignation

Desperation Rebellious Tendency

Terrorism Analysis


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Loss of faith in peaceful, democratic process, no hopes of getting ‘justice’ without resorting to violence

Religious Dogma

Terrorism

Perceived Historical injustice

Political / Economic / Philosophical ideology

Propaganda for masses, Indoctrination of

individuals

Birth of a militant

Public sympathy, Weak national Character

Lack of clear and firm Foreign (therefore,

Defense) policy

Physical constraints (Porous borders, unregulated coastlines)

Parallel economy, Corruption, Fake / high denomination currency

Logistic support, funding and training etc from

hostile foreign organizations / nations

Systemic Administrative weaknesses in governance

and law enforcement


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Withdrawal of High denomination currency (above Rs. 50)

Arthakranti Proposal

Withdrawal of existing Taxation System completely (except Customs and Import duties)

Every Transaction routed through a bank will attract certain deduction in appropriate percentage as Transaction Tax i.e. Single point tax deducted at source (say 2 %).

This deduction is to be effected on receiving/credit accounts only

This deducted amount will be credited to different Government levels like Central, State and Local (say 0.7%, 0.6%, 0.35% respectively)

Transacting Bank will also have its share in this amount as the bank has a key role to perform (say 0.35%)

Cash transactions will not attract any transaction tax

Government should make legal provisions to restrict cash transactions up to a certain limit (say Rs. 2000)


Home

Poverty

Reduced social

spendingUnemployment

Reduced purchasing

power

Flawed taxation system

Tax evasion

Under-utilized banking system

Inadequate money supply to economy

Individual’s credibility

not established

High commodity prices due to heavy

indirect taxes

Deprivation – from resources and means

(credit) to acquire them

No access to credit

Lack of education &

skills

Effects of Proposal

Adequate revenue with Government


Home

Poverty

UnemploymentReduced

purchasing power

Flawed taxation system

Tax evasion




not established

High commodity prices due to heavy

indirect taxes



No access to credit

Effects of Proposal

No Black Money

Single point taxation system


Home

Poverty

UnemploymentReduced

purchasing power




not established



No access to credit

Effects of Proposal

Banking transactions

increased

Individuals credibility

established


Home

Poverty

UnemploymentReduced

purchasing power



Effects of Proposal

Industry, trade, supply

stimulated

Purchasing power

increased

Cheap & easy capital



established


Home

Effects of proposal

Terrorism

Birth of a militant



Defense) policy






and law enforcement



established


No Black Money

Purchasing power

increased

Poverty


stimulated


Home

Effects of Proposal

Terrorism

Birth of a militant



Defense) policy






and law enforcement



established


No Black Money

Purchasing power

increased

Social security


stimulated

Empowered Government


Home


Home

Jai Hind!

Documents

Arthakranti_2011-Sept-24_English