REMEDIES FOR INDIAN ECONOMY

REMEDIES FOR INDIAN ECONOMY




NEED OF THE HOUR

FISCAL DISCIPLINE
CONROLLING MONEY SUPPLY
INCREASE THE RATE OF TAXES ON LUXURY ITEMS TO MOP UP MUCH NEEDED REVENUE
SOME MAJOR INIITIATIVE TO MOBILISE SAVINGS
SALE OF ATLEAST 10% OF THE EQUITIES IN SELECTED PUBLIC SECTOR UNDERTAKINGS AND RECYCLE THE FUNDS FOR PRODUCTIVE INVESTMENT


MAJOR BOLD STEPS TO BE UNDERTAKEN

IMPOUNDING OF 50% OF THE ADDITIONAL DA PAYABLE WEF 01.01.2010 BY CENTRAL , STATE GOVERNMENTS AND BANKS AND OTHER PUBLIC SECTOR UNDERTAKINGS. ATLEAST 15% OF DA MAY BE PAYABLE TO NEARLY TWO CRORES EMPLOYEES DURING 2010 AND IT WILL HAVE A GOOD IMPACT TO ARREST INFLATION AND ALSO TO POSTPONE THE PAYMENT THERE BY CONTAINING THE FISCAL DEFICIT

FREEZE THE BUDGETARY ALLOCATION TO VARIOUS DEPARTMENTS AND THOROUGH REVIEW OF MAN POWER REQUIREMENTS AND CLUBBING OF DUPLICATION OF WORK . ADMINISTRATIVE REFORM COMMISSION AND RATIONALISATION OF MANPOWER TO BE TAKEN ON A WAR FOOTING BASIS.

REPLACE THE ENTIRE BURDEN OF SUBSIDY BY CASH PAYMENT MECHANISM ON MONTHLY BASIS JUST LIKE PAYMENT OF PENSION THROUGH BANKS /POST OFFICES . FREEZE THE RATION CARDS ON THE GOVERNMENT RECORDS . SUITABLE MECHANISM TO BE INVOLVED . A PRIVATE AGENCY MAY BE ASSIGNED WITH THE TASK OF IDENTIFICATION IN SYNCHRONISATION WITH THE PARTICULAR GOVERNMENT DEPARTMENT.
AT ONE STROKE TAKE OUT ALL GOVERNMENT /QUASI GOVERNMENT EMPLOYEES AND WHO ARE ALL PROTECTED BY INCREASED DA COMPENSATION METHOD FROM THE PURVIESW OF SUBSIDISED RATION COMMODITIES.EXEMPTION: DEFENCE AND RELATED SECTOR E,MPLOYEES
WITHDRAW THE SUBSIDY ON THE CYLINDER IN STAGES AND COMPLETE REMOVAL OF SUBSIDY IN 2 YEARS.

IF THE NEW TAX CODE IS NOT REVENUE NEUTRAL SIMPLY POSTPONE THE IMPLEMENTAION AS GOVERNMENT MAY BE FORCED RATHER COMPELLED TO REMOVE O NE BY ONE THE IRRITATING ASPECTS AND RETAIN ONLY THE REVENUE LOOSING RECOMMENDATIONS AND IT WILL NOT GO AS A PACKAGE.( FIFTH PAY COMMISSION WAS NOT IMPLEMENTAED AS A PACKAGE AND HENCE THE EXPENDITURE WAS MORE THAN THAT ENVISAGED BY THE COMMISSION ) THAT WILL END WITH LOSS OF ADDITIONAL REVNUES.

TRY TO MAKE GOLD AS A COMMODITY AVILABLE ATLEAST 10% BELOW THE MARKET PRICE AND MAKE IT IMMEDIATELY ATTRACTIVE INVESTMENT. MONEY MOBILISED MAY BE ROUTED FOR INFRASTRUCTURE DEVELOPMENT.THIS WILL ALSO CHECK THE GOLD PRICE IN THE OPEN MARKET.
TAX FREE INFRA BONDS OF 8% MAY BE FLOATED FOR 10 YEAR TENURE AS A LISTED ENTITY FOR LIQUIDITY AND MOBILISE MAXIMUM FUNDS FOR INFRASTRUCTURE DEVELOPMENT.INDIRECT BENEFITS TO SENIOR CITIZENS.

EXPLORE THE POSSIBILITY OF EXEMPTING THE ENTIRE INTEREST INCOME RECEIVED FROM DEPOSITS FROM RECOGNISED APPROVED FINANCIAL ENTITIES LIKE BANKS NBFC ETC IN THE HANDS OF INVESTORS
OR
CHARGE 5% OF THE INTEREST PAID ON DEPOSITS BY BANKS AS TAX AT SOURCE PAYABLE BY THE INSTITUITIONS ON THE LINES OF INTEREST TAX AND ALLOW THEM TO REALIGN THE DEPOSIT RATES ACCORDINGLY .NET RESULT IS THAT INTEREST INCOME RECEIVED BY THE INVESTORS SHOULD BE FREE FROM INCOME TAX.THIS WILL REDUCE THE WORK OF THE DEPARTMENT AND THE SCARCE MANPOWER CAN CONCNTRATE MORE ON OTHER BIG TICKET RETURNS.

INCREASE THE CUSTOM DUTY ON IMPORT OF LUXURY ITEMS OF ELITE CLASS CONSUMPTION TO MOP UP ADDITIONAL REVENUE.

THE FOOD INFLATION IS TAKING THE POOR PEOPLE MUCH TO RANSOM AND MORE THAN 80% OF THE POPULATION IS SUFFERING. HENCE HONEST AND BOLD STEPS IN THE RIGHT DIRECTION IS THE NEED OF THE HOUR AS THEY ARE LOOKING THE GOVERNMENT TO SAVE THEM FROM THE PRICE RISE.


K BALASUBRAMANIAN