Since 2005-06, taxes and duties for the corporate world and the rich have been written off at the rate of Rs.7 million a minute on average. Duties waived on gold and diamonds in the last 36 months equal the 2G scam amount
Forbes has just added an “errata” to Union Finance Minister P. Chidambaram’s budget speech. The Minister had found a mere 42,800 people in the country with a taxable income in excess of Rs.1 crore a year. Or $184,000 a year. Forbes, the Oracle of Business Journalism, does not list taxable incomes. But it does put up a list each year of billionaires the world over. And in 2013, 55 Indians figure on that list, (up from 48 last year) with an average net worth of around Rs.190.8 billion. (See: http://www.forbes.com/billionaires/)Their total net worth is $ 193.6 billion. That’s…er, Rs.10.5 trillion. Chidambaram might want to compare notes with Steve Forbes. They could come up with a lot more names falling within his narrow super-rich spectrum.
The 55 wonder-wallets give India fifth rank in the world of billionaires on the Forbes List. Behind only the U.S., China, Russia and Germany. Our rank in the 2013 United Nations Human Development Index, though, is 136 out of 186 nations. With almost all of Latin America and the Caribbean, bar Haiti, ahead of us. (We have, though, elsewhere managed to tie with Equatorial Guinea.)
Class divide
Well, okay, the total worth of our megabucks mob comes to just over $193 billion. But a glance within reveals a grim class divide. At the bottom are the aam aadmi tycoons, barely scraping past the one billion-dollar mark. There are four of them, inches away from plutocrat penury, with only a mere billion to their names. There are 17 in all below the BPL (Billionaire Permanency Line), which seems to be $1.5 billion. Once you cross that threshold, you tend to be a permanent member of the club.
There’s another 12 in the magnate middle classes, between $1.5 and $2 billion. Next, the deluxe segment: 16 of them — above $2 billion, below $5.5 billion. And finally, the big boys — above $6 billion each. The top 10 are worth $102.2 billion. (A bit more than our fiscal deficit of $96 billion.) There is also a platinum tier. The top three account for a quarter of our total billionaire wealth, if Forbes is to be believed.
I’m not sure Forbes is to be believed. All these sound like grave underestimates. Meanwhile the Chinese and Russians have forged ahead of us on the List. (Steve, I demand a recount). Either the Chinese and Russians are up to no good, or Indian creative accounting is keeping our numbers down. This fiasco becomes particularly galling when we’ve all been investing so heavily in the growth of our super-rich and better-off. Some $97 billion in this year’s budget. You can express that as Rs.5.28 lakh crore (as our tables do). Or, as Rs.5.28 trillion. It’s just as obscene either way. (See: Statement of Revenue Foregone http://indiabudget.nic.in/ub2013-14/statrevfor/annex12.pdf). Heck, we deserve a better performance from our billionaires.
One of the biggest write-offs in this year’s budget is the customs duty on gold, diamonds and jewellery — Rs.61,035 crore. That’s more than what’s been written off on “crude oil & mineral oils.” Or even on “machinery.” The waiver on gold and diamonds in just the last 36 months is Rs.1.76 trillion. (Or what we lost in the 2G scam). I guess we shouldn’t be surprised, then, that three new Indian entrants to this year’s Forbes Billionaires List are in the field of jewellery.
It’s not as if we haven’t been generous with them in other sectors, though. The latest write-off in corporate income tax is even higher at Rs.68,006 crore. The total revenue foregone this year (Rs.5.28 trillion), as others have pointed out, is greater than the fiscal deficit. But just look at what the write-offs on corporate tax, excise and customs duties add up to since 2005-06, from when the data begins: Rs.31.11 trillion. (That’s well over half a trillion dollars). It also means we’re writing off taxes and duties for the corporate mob and rich at a rate of over Rs.7 million every single minute on average.
But the budget has almost nothing worthwhile for, say, health or education where there’s a decline compared to allocations last year (in proportion to GDP). Ditto for rural development. And a micro-rise for food that will quickly be taken care of by prices.
Gee. It seems there’s no need for the super-rich to commit half their fortunes to charity. They are the charity we all of us support. End the lavish waivers, pay your taxes and we’d be in glowing fiscal health. Every other economic survey and/or budget has noted the obscene write-offs as a source of worry and said so. Recall that the Prime Minister and Finance Minister have both in the past promised to end this corporate feeding frenzy at the public trough. But it only gets bigger.
What gets smaller is India’s tax to GDP ratio. In Mr. Chidambaram’s own words: “In 2011-12, the tax-GDP ratio was 5.5 per cent for direct taxes and 4.4 per cent for indirect taxes. These ratios are one of the lowest for any large developing country and will not garner adequate resources for inclusive and sustainable development.” (Emphasis added) But he does nothing to correct that by way of raising revenue. Only by curbing expenditures in the social sector. He’s nostalgic, though, for a time when “in 2007-08, the tax GDP ratio touched a peak of 11.9 per cent.” That was when the write-off trough was much smaller.
Food security
What also gets smaller is the idea of food security in a nation where the percentage of malnourished children is nearly double that of sub-Saharan Africa. How do they get past the porcine gridlock at the budget trough?
Also getting smaller is the average per capita net availability of foodgrain. And that’s despite showing an improved figure of 462.9 grams daily for 2011. (Caution: that’s a provisional number). Even then, the five-year average for 2007-11 comes to 444.6 grams. Still lower than the 2002-06 figure of 452.4 grams.
It’s scary: as we warned last year — average per capita net availability of foodgrain declined in every five-year period of the 'reforms' without exception. In the 20 years preceding the reforms — 1972-1991 — it rose every five-year period without exception (see: Table 3).
Ah, but they’re eating a lot of better stuff, hence the decline in cereals and pulses.
So drone on the Marie Antoinette School of Economics and assorted other clowns. Eating a lot better? Tell that to the nation’s children — for whom sub-Saharan standards would be an improvement. Tell that to the famished in a country ranking 65 in the 79 hungriest nations in the Global Hunger Index (GHI). (Eight slots below Rwanda.) India’s GHI score in 2012 was worse than it was 15 years earlier in 1996. Tell it to Forbes. Maybe they could do a list of the most insensitive elites in the world. You know who’d top that one.
Keywords: Budget duty waiver, corporate concessions, super-rich spectrum, Statement of Revenue Foregone, P. Chidambaram
Ever since the budget was presented, I am eagerly awaiting the clinical response from Sri Sainath, regarding the revenues foregone. Every year, this was the practise.The elite raise hue and cry if subsidies are given away to the aam aadmi for purchasing gas cylinder, for a farmer to purchase the fertiliser or to purchase the much needed diesel and petrol. The mainstrem media, except The Hindu ,is silent on the revenue foregone.
Same is the case with the NPA's of banks, which are raising perennially for the last decade. When an individual defaults a bank loan, his name will be put on the notice boards of the banks His property will be attached to get back the loan. But if you are a Mallya,they do not even touch your hair.
Similar will be the plight of an individual tax payer.You are not supposed to save more than a lakh of rupees under 80C.You are ought to spend or pay tax. After all your tax liability is too small to be written off and too big to condone. Sir,keep us enlightening.
Mr. Sainath was once again at his best when he tore open the principal
trend of political-economy underlying the budget exercise of Mr.
Chidambaram and his predecessors in Cong. The budget, reflecting the
entire gamut of disastrous neo-liberal economic trends, will only
further accentuate the deep divide of haves and have-nots of Indian
society. Hence there is nothing unusual in finding India as one of the
worst performers in terms of Global Human Development Index of UNDP
and other parameters like Global Hunger Index. It may not be out of
place to quote from another wonderful article by Prof. Amartya Sen and
Jean Dreze published in the Outlook on 14 Nov 2011 wherein it was
shown how India is lagging even behind Bangladesh and other South
Asian nations (barring Pakistan)in terms of HDI and other important
indexes. Thanks galore to Mr. Sainath for once again bringing to fore
the important shades of neo-liberal policy making that we must
appreciate, instead of judging motives.
Very thought provoking article with correct statistics and ont just opinions. I am a little shocked with the results of the study but not surprised. The mega-rich have mega-potential to make the party and the finanace minister to dance to their tune. But the common people who can not read the details like Sainath are happy when they are given a sop of say no income tax till 1.5 lakh per annum salary. And tehy miss the details that are hidden so nicely. I am of the opinion that the feeding frenzy of the mega-rich at the table layed out by the FM should not be of surprise. This government does not surprise me any more. The entire UPA team are like the hungry Piranhas feeding on the flesh of the country at the expense of the common man at every single opportunity. Lest one thinks I am a communist, I can assure you 100 percent, that I am not.
The Hindu is a newspaper of immaculate standing. It is the Corporate proxy rulers of India that needs to do some explaining. It is clear that even as Govt is doing away with succour for poor in the form of food subsidies and fuel subsidies citing financial pressures, it becomes obvious that the same Govt is giving tax concessions to Corporates. So effectively money is transferred from poor to rich.
Result : Poor children of India leads a life worse than sub-Saharan Africa, yet Rich Indians lead a life better than anywhere in the world. This is a damning expose, and urges people to wake up for justice - not only in India, but everywhere in the world.
I Agree with the content of the article but i also believe that every
issue that's been mentioned in it is something that most of the
Indians are aware of. Except for the broader understanding it has
provided with the help of figures, to give a better picture of what
vague idea we have about the known-truth. The Govt. is in need of
more transparency and accountability in providing we Indians with
good governance. And about the plutocratic penury or billionaires
talk i believe its clear the politicians and business-elites hand-in-
hand walk to attain their selfish motives, the poor and middle class
are the scapegoats. And Now this article talks the same with a proof
of how people are fooled and misguided.
I am writing these comments after reading the 41 comments so far. Those who are against the article are quibbling over meanings of write-offs and others while it is a fact the food articles we purchased the previous week has to be purchased after paying more than twice the amount this week. There seems to be no point in interested in the price of gold and diamonds when you have to watch over the price of the rice you have to get in order to eat. We are into the magic world of cash subsidies now with rise in prices of foodstuff ,very soon we will have market watch these prices with daily quotes and benchmark indices. The important point is, Are the rulers(the elected representatives hardly represents the interest of the electors any more, the term kleptocracy fits very nicely)paying attention?
I wish the government would show as much consideration for middle class
people. Despite there being a sustained demand for revising the tax
slabs for personal tax the govt. keeps ignoring it. This is because a
large section of population falls in the 2-5 l.p.a income bracket and
govt. can't forgo this source of tax. But does this behoove a nation
which claims to be a welfare state? Mr. chidambaram give as many
concessions as you want, we can't do much about it as it is, but please
don't take it out on common populace.
@Sankaran
yes,thehindu must explain the motive behind writing this.Suppose i have a neighbourhood that is inhabited by a few rich men while many others are deprived of basic facilities.And now it has a government running affairs.You say don't privatise,then you say don't become rich,,,and then provide all basic needs to the havenots.And when government run businesses don't yield enough income to run schools and other things,you ask to run the units efficiently and of course write such articles.And meanwhile there is a whole bunch of intellectuals in that neighbourhood earning their bread on the status quo.And then....you only say!
The most strident and virulent criticism post budget was on account of
tax residency certificate (TRC) and beneficial ownership requirements
consequent to funds and investment flows into the country through Tax
heavens. Sainath tells us why it was so powerful that Chidambaram and
all his backroom boys and girls went all out to placate and
mollycoddle the business ‘animal spirit’. What was missing in the
budget is a concrete action plan signal towards improving the Tax-GDP
ratio and controlling the high food price inflation. The tax
preferences of the government indicate why it is so. One good thing
about this un patriotic alliance is that they brought about this
transparency in tax administration for the first time in 2006-07 where
2004-05 images are also captured and we are able to see and read
Sainath’s acute analysis.
While printing this page, not all the tables are coming but only one.
Probably because the tables are organised in a particular way. This
seems to be a technical error, you should correct it so that all the
tables are available for printing. Thanks
So what exactly is revenue foregone? Is it the revenue (in shape of
tax and duties), which the government did not collect? Is it the
revenue that the corporate did not pay? What exactly is this?
Well, we all know that for our personal income tax there is a standard
deduction on the pre tax income. TheRE we have exemptions under various
sections of IT law (insurance, HRA, school, etc). All these exemptions
collectively form revenues foregone. Same is the case with corporates.
They too get exemptions under tax laws for meeting certain conditions.
All the subsidies provided (LPG, diesel included) in any shape or form
are also part of revenues foregone.
All the incentives given for export promotion also are revenues
forgone.
The article makes it look as if the people and companies of India are
stealing money and the government is just turning a blind eye to them.
The Hindu must explain the purpose of publishing such a biased article. Sainath's arguments are worse than our communists comrades.Is it the intention of the HINDU that a class war should happen in India? DID Manmogan singh and Chidambaram help these 55
Indians? Have these 55 Indians not helped the Indian economy and fellow Indians to their well being?Have not the government done to improve economy, to generate employment opportunities,to reduce the
poverty level etc ,in the last nine years?
Health, education,food and shelter are,no doubt, very important.
The poverty in India is very acute and huge.Talking is very easy.
Can the government alone solve the problem?Don't we need these 55
people and corporates help? Why not Sainath start a political party, as Kejriwal did? By the by what Kejriwal is doing?
What for these write-off ? to make poor three new Indian entrants to
this year’s Forbes Billionaires List are in the field of jewellery.
We hail Indian Democratic Republic.
It is an article which establishes an argument based on data. Those who
have found flaws with definition of a 'write off' and others favoring
this write off are answerable to the poor of this rich nation. Enjoy
your diamonds and gold- you henchmen of Forbes-listers but your progeny
will hang their heads in shame and bear the burden of your unpardonable
guilt.
The clowns who are shouting about the definition of Write offs etc,
should check out the Statement of 'Revenue Forgone' and have a moment of
enlightenment
Mr. Sainath is brilliant journalist and let his tribe increase. But how much any journalistic exercise help in feeding the hungry millions. How do our rulers come with a figure exceeding 460 grams as per capital availability of food in a country where food production is a mere 250 million tons per year will feed the `1.2 billion people. That means thar at least 800 million people in India either go to bed hungry or eating nothing. What will happen to our country not able to develop either physically or mentally. It is a sure sign that our country is sliding towards a horrible future of having the largest number of people with deformed brains making them idiots. Nobody wants to have a India inhabited by idiots. Drop every thing else, roll up your sleeves, get into those agriculture lands and start producing food for the country using crop production technologies gotten through begging, borrowing or stealing to prevent the country from sliding off the cliff.
The government just sits like a hen hatching while the mega richs push
their way through without being taxed. Given the declining state of
health and education,the government ought to come forward and accept
what it's not done to improve the same. And the write offs are
definitely not the way to go.
Ask yourselves this. Who has done more for the common man in the last 20 years - businesses or government? The answer should be clear to anyone with a modicum of honesty. If you want businesses taxed more, ask yourself what will happen to that additional 'revenue'? Do you Really, after all these years, Still think that the government of India is going to become efficient and will take care of the poor???
Do we really want to go back to a time when almost all the resources and their subsequent income was held by the government, and the economy was near collapse?
What we should be asking for is lower taxes for all, not just the rich, so more Indians can use their money efficiently. We should be asking for less govt monopoly and bureaucracy, and more market competition, so our money can find the best value.
But NO, Sainath and friends must keep their inane faith in government, no matter how many times the beast reveals its true nature.
The other day i heard our respected ex-president Dr. Kalam saying he respect our incumbent PM as a fine ECONOMIST. I would like to appeal to him to please reconsider his opinion because a great deal of economic policies by UPA under him have been proved flawed in our country. I do accept that corporates and others do need state's backing to grow but would also ask at what cost. Do we need a higher Growth rate with Greater rise in INEQUALITY and far Great HUNGER.
Thanks to Mr. Sainath and the "Hindu" for the frightening disclosure of taxes due from the corporate world which according to Mr Sainath would mean we are writing off taxes and dues from the corporal world and the rich at a rate of 7 millions every single minute. Before doing so, Government must have exhausted all avenues, including legal, for the recovery of dues. It is almost likely in the absence of any such steps the writing off procedure will continue year after year resulting in huge loss to the Exchequer and the powerful rich going scot-free. The whole thing seems to be shrouded in mystery and the public are kept in the dark. On the other hand FM goes hammer and tongs against the middle class community for prompt payment of income tax and the IT department makes it compulsory for all PAN holders to file their Returns whether or not they fall below the tax limit. The entire Government machinery needs to be thoroughly revamped to make it more effective without further delay.
'Phantom revenues" and "better realization on lower rates" are theories floated by economists on the payrolls of the Corporates much like those exposed by the movie "Inside job". After inventing and adopting such "theories", govts justify tax concession given to Corporates as "stimulus" to the economy. Well, which economy gets that stimulus ? Sainath just told us that.
Sainath's words "Eating a lot better? Tell that to the nation’s children
— for whom sub-Saharan standards would be an improvement. Tell that to
the famished in a country ranking 65 in the 79 hungriest nations in the
Global Hunger Index" reflect the pathetic situation of our country. One
wonders if our politicians are listening. If not, well then, one day
they will indubitably face the music.
Can somebody please explain what is the government's logic/excuse for these write-offs?
Is it that they believe writing off taxes is better for India as against not doing it?
What prevents them from ensuring collection of these revenues?
I have read several articles in this news paper and other sources with this line of argument but none which gives me an understanding of why such revenue is written off.
I am not saying we have to empathize with the government but just seeking to understand.
On the other side of the scale, I had heard a prominent Hindi tv journalist 'write-off' this question calling these as phantom revenues. Would you call this - a case of a thorough bread believer of free market economy?
it is time to act as a citizen of india
The concept of write off in Income Tax terminology is totally mistaken
by the author. This single semantic mistake has worked like wings to
this article which has resulted in wrong notion and direction.
In income tax statements, write off is a reduction of taxable income
as recognition of certain expenses required to produce the income.
In income tax calculation, a write-off is the itemized deduction of an
item's value from one's taxable income. Thus, if a person in the USA
has a taxable income of $50,000 per year, a $100 telephone for
business use would lower the taxable income to $49,900. If that person
is in a 25% tax bracket, the tax due would be lowered by $25. Thus the
net cost of the telephone is $75 instead of $100.
I wish to make a few points. (1) It is necessary to understand that it
is unethical for the government to give large scale concessions to any
corporate, it is equally necessary to accept that in erstwhile Soviet
Union, a socialist economy where there were no private businesses
and hence no concessions to any one like them, justice was not done to
the common man. (2). Assuming that all this money which has been given
away was saved, where it would have gone? In Swiss banks! (3) Public
sector in India, which was supposed to reach commanding heights, was
never allowed to grow by the bureaucracy and politicians. The leftists
wrecked it too by unionism of the worst kind. (4) Where is the
solution then to the mess that we are in?
It is really disturbing to learn about the way our elected
representatives carry on business.They speak as though they are doing
a favour to the poor by drafting 'schemes' for them.The even sadder
part with this government is that they see subsidy as a sin, not
realizing that it is the implementation part which is problematic.Yet,
they advertise heavily and dole out meagre amounts to the poor,
representing that they are doing a great service to the nation.Hope
they take note of the author's words:"End the lavish waivers, pay your
taxes and we’d be in glowing fiscal health." Does the country need
gold and diamonds for the elite or food for its people?
Common man is not amused by the ever increasing largesse doled out to corporates and big business tycoons over the years. while the media celeberate the new addition to Forbes list every year the aam admi is crushed by subsidy reduction . The new addition of 3 jewellers to the list and revenue forgone under gold and diamonds of Rs 61035/ crores have to be read together. every channel and newspaper is full of jewellery advts with the inauguration by cine artists, collectors, it commissioners, politicians!!!.the way the products are advertised .....without which the human race will be non existant without gold. Mass transportation vehicles like railways and public tranportations pay higher rates for diesel and SUV"s and mobile towers get subsidised diesel!!. Western educated economic advisors and rating agency driven policies will drive our country to depths of poverty and doom
It’s not less than vulgarity (forget civility) to celebrate riches through 'made it to the list of billionaires’" in a country where mothers have to teach their kids to sleep empty stomach. Yes, revenue foregone by evading (or the magic hand of state assisting to evade) corporate tax ails the health of state exchequer. My worry is about middle class who maintains a studied silence on the matter and its reluctance to favor the progressive taxation. I do acknowledge frustation of honest taxpayers who have not tasted the fruits of their contribution to the state. Also, the new kings of this republic (with selective schizophrenia) gingerly shell out money on so called "social spending or social liability" (which actually is investment with long gestation period) as opposed to giving brownie points to the poster boys (in Forbes magazine) whose brass is thought to fuel the economy. With such a differential mindset, the naughty boys will continue to smoke their weed.
The biggest problem with this usual “fire and brimstone” article
is not, as pointed out by Mr.Gopal Vaidya in the comments
section, that nowhere we can find a definition of what a "write-
off" is. This is a newspaper article, not a dissertation on
Indian government’s past budgets, to define and describe each
segment of write-offs. Surely, if one-fifth of the revenue
foregone by customs duty exemption for the past 5-6 years is for
“gold, diamonds and jewellery” segement then there is ample room
for the finance minister(s) to claim some of that revenue loss
and spend it on Indian children’s health and education. This is
especially needed in a country where approximately four children
die every minute from preventable illnesses and malnutrition. The
biggest problem is that few media organizations in India report
in the right way the mismanagement of our economy. And it is
disgusting to say that the possibility of corruption should
prevent the state from doing its basic duty to its citizens
Well written article. However, what readers need is a clear understanding of what it means to 'write-off' the tax. Does it mean that the Govt didn't collect taxes from the super-rich or the super-rich didn't pay the taxes? Or does it mean that the govt is allowing the super-rich to get away with tax evasions?? Because if that is what it means (tax evasions), then it's really big! And the govt is clearly committing the worst crime legally and constitutionally!
Even this damagingly revealing article by Sainath of the free market capitalism has found critics, however few.
Those few must be none other than the direct beneficiaries of the present system and they would naturally turn a blind eye on the sufferings of vast majority of Indians.
Isn't there a saying, "We are what we eat".
The "Charitable educational institutions",which make PROFITS have to
be taxed.
Our Manmohanji and Chidambaramji always talk about reducing the subsidies given to
common man's daily needs like gas, rice or other items. But the is it not fact that the revenue
foregone from items of corporate consumption is nothing but 'grand' subsidy to billionaires of
India whose number is going up every year. Sainath's brilliant paper says it all. So called
CAD(current account deficit) parroted by PM and FM from roof tops is nothing but fooling the
people of India with false and vested premises to enhance tax burdens on the common man
directly and indirectly. Kudos to Sainath!!!
Devastatingly brilliant -- fuels the rage!
Our freedom-fighters would have wondered if these datasheets are from
the republic they fought (and got killed) to establish or from the
british-India that they fought.
To curb the revenue deficit, the country needs to impose taxes on
Gold, Silver and Diamond Jewellery. An attempt was made in the last
budget on the imposition of excise duty on gold jewellery but was
rolled back after a hue and cry by the organised manufacturers.
Implementation and the clarity on the issues of Central Excise law was
lacked on this issue and a precious chain of manufacturers were not
brought into the tax net. A clarification was however made which came
to Rs. 84/- per ten grams was needed to be paid by the manufacturers.
However due to political compulsions and the pressure from big players
made the government to roll back.
It is this kind of exposé which reveals essentially how little difference there is between the
rich and powerful who rob the tax systems of both our lands - India and Australia - via "family
trusts" and the like. Look up names like Eddie OBEID and Nathan TINKLER and Gina
RHINEHART in Australia - and "family trust"! Bravo to this writer!
The data clearly shows that govt is allowing the rich to get away with loot.
The FM is answerable on what basis is the wave off allowed and who are the actual beneficiary.
Thanks for this write-up. As usual you hit the bull eye in terms of revealing the background truth. This reform is working only for corporate world not for aam-aadmi. And in my opinion Mr priminister has lost his reputation as a real econimist. And Mr chidambaran is a person with no heart for poor.
still our super rich business tycoons ask for easier finances, at the cost of starving peasants and suffering sr. citizen pensioners. will our govt dare to make public names of defaulting industrilists,politiciansand super rich others who bleed our country white? Hats off to P.SAINATH.
So, we have the rarest of rare government in India that relentlessly
works for "inclusive growth" and raising the 'living standards' of all
those people who are just able to spend less than $1 per day on food! No
doubt, India is a rich democracy - of the rich, for the rich and by the
rich! When are we going to rewrite this script of truncated growth
story? ?
Increasing tax rates on high income earners are no panacea. Misdirection in Government spending of its existing resources and corruption need to be tackled. More privatization with healthy competition and tight control and oversee by installing powerful regulators are the way forward!
The biggest problem with this usual "fire and brimstone" article is that nowhere can you find a definition of what a "write-off" is. It would appear that the next time you purchase something in the market after negotiating, you can be derive consolation that the shopkeeper wrote off revenue simply because he lowered the asking price. Conversely, if the govt increases spending on something it is a good thing even though that extra money will simply mean more corruption.
Combine this with his irrelevant rantings about billionaires in India, China and Russia, and it is not hard to conclude that this entire article is well rehearsed exercise in rabble rousing.
man, you rock. superb sir.
Figure of 42800 super rich as pointed by Finance Minister in his
Budget-2013-14 presentation reduces rest of 120 crore Indians to
almost ZERO in the growth opportunity divide.
This exposure of undeclared wealth as Public sharing information tool
is done amazingly by Sainath using more numbers and less alphabets.Let
us see how the nagar sevaks and MPs digest the numbers,lies and the
obscene rot in inclusive growth in the ongoing session of parliament.
Kings at the top get stripped once kleptocracy feed direction is used
to expose the `animal spirits` unnecessary protection.
"I feed you" tag of Corporate-minister makes the participatory laws of
public more flexible or twisted in the trickle down economy that has
stopped working as even admitted by President of India.
If there was no Dirty Money, India would cease to function since all
the business is deliberately done in cash and reconciled later in the
books of creative manufactured accounts.
Yet again a strike of brilliance from Sainath! Its really heartbreaking
to come to terms with the reality that is portrayed in this article. I
sincerely hope that some wonder takes place and fairness prevails in
this nation!
About time the rich pay duties for foreign luxuries.
Notice this rapid increase in duty avoidance came just after Un-Patriotic Alliance
grabbed power.
Thanks Sainath, for such a fact-filled, hard hitting article, as always.
You certainly tell it like it is, and fearlessly hold the mirror on so
many issues, for society to see, soul search, and act upon. The pace of
positive change, may not be as fast as one would like it to be, but I
shudder to think how much slower things may be, if it were not for the
kind of conscientious work that you do. Please continue to report,
educate, opine, and be the benchmark for honest journalism that makes a
difference, and may your tribe increase.
Fabulous Article ! A sole, sane voice in the cacophony of Racketeers.
When people protest at the high cost of petrol and diesel both state and central govts. refuse to reduce the taxes levied on these products but more than willing to favour the super rich.In the last 5 years more than 90% of the levies due on gold and dimond imports were wriytten off!!!!.This govt. causing more damage to the nation than all the terrorist acts put together.
All rich persons cannot be made subjects of generalised statements,
but surely a 22 storey home for a single family shows what most of
them think about "the great unwashed"(mostly because of water
shortage). Sainath has written on it before and he has again shown by
irrefutable data and forceful logic that it is absurd to cut subsidies
when we can zero our deficit by just collecting assessed taxes on
present rates. But the big question is, will that be a prudent step in
current economic situation? We are now on the mercy of corporates and
it shows in recent failed spectrum auctions. Sainath must tell how to
regulate and tame these corporates.(particularly FIIs). We are
fulfilling what we have chosen and we canot escape it NOW.
An excellent point made by the author Mr. Sainath. Successive
governmental policies have contributed to increasing the rich poor
divide by taxing or denying the middle and low income groups to feed the
coffers of the elite. This scenario must change for good and we all hope
so.
True growth of a country is not only based on projected economic growth
indicators but primarily on population development indicators.
It is a good thing that this is an opinion piece since as a journalistic piece, this wouldn't be worth publication even in a tabloid much less a respected newspaper.
It is full of emotion and baseless comparisons rather than facts and considered observations. There is definitely a point to make in that there are so many billionaires and billions of poor but this article is not it.
I wish quality was thought of before publishing this opinion piece.
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