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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Wednesday, April 12, 2023
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Vision
Vasudhaiv Kutumbakam
One Economy
Capital Formation
Revenue for Effective
Governance
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Social Reality
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Economic Reality
Interest on External Debt
Cost ofrunning Government
National Security
Infrastructure, Agriculture,Needs of Common man
ComplexTaxation system
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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.
GDP Growth Slows Down
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
Flawed Taxation System
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
GDP Growth Slows Down
Inadequate Capital
Supply to Economy
Poor Credit / Capital
Formation
High Input Costs
Tax Evasion
Fiscal Deficit
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Flawed Taxation System
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
Show
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Statistics
How should it be… Show
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Credit Establishment
Less Use of Banking System Obstructs Credit Registration of a lot of Citizens in
the National Economy
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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)
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
Show
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Effects of Arthakranti Proposal
Tax Collection is Simplified
Opportunities for Corruption
Eliminated
Black Money Eliminated
Anti-Social and Anti-National Elements
Effectively Checked
Fake Currency Eliminated
Anti-Social and Anti-National Elements
Effectively Checked
Adequate Revenue to Government
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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Effects of Arthakranti Proposal
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
Anti-Social and Anti-National Elements
Effectively Checked
Adequate Revenue to Government
Industry Trade, Supply
Stimulated
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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Effects of Arthakranti Proposal
Commodities and Services are FREED from Tax Influence
Prices Drop
Focus Shifted to Innovation from
Tax Manipulation
Industry Trade, Supply
Stimulated
Cheap and Easy Capital
Purchasing Power of Society
Increases
Market Demand Boosted
Anti-social and anti-national elements
effectively checked
Anti-Social and Anti-National Elements
Effectively Checked
Adequate Revenue to Government
Industry Trade, Supply
Stimulated
Show
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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Effects of Arthakranti Proposal
Black Money is Converted into
White
Tax Revenue Increases by Orders
of Magnitude
SLR Revised
Money Supply Regulated
Industry Trade, Supply
Stimulated
Adequate Revenue to
Govt.
Anti-Social and Anti-National Elements
Effectively Checked
Adequate Revenue to Government
Industry Trade, Supply
Stimulated
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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Effects of Arthakranti Proposal
Adequate Revenue to Govt.
Industry Trade, Supply
Stimulated
Anti-Social and Anti-National Elements
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
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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
Anti-Social and Anti-National Elements
Effectively Checked
Increased Purchasing
Power
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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Jai Hind!
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
Direct Indirect Total
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
Direct Indirect Total
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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Back
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
All figures in Rs. Crores
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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.
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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 -
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
All figures in Rs. Crores
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
All figures in Rs. Crores
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Dependency on FDI
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Dependency on FDI
India
China
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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.
All figures in Rs. Crores
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Back
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.
All figures in Rs. Crores
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
Show ShowShow
Media
Show
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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.
Back
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Empowering democracy Allowance for elected representatives
Back
• 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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Jai Hind!
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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.
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Jai Hind!
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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 )
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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How can we tackle this problem?
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
Terrorism Analysis
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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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)
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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
ArthakrantiA design towards Principled, Prosperous & Peaceful living
Home
Poverty
UnemploymentReduced
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
Effects of Proposal
No Black Money
Single point taxation system
ArthakrantiA design towards Principled, Prosperous & Peaceful living
Home
Poverty
UnemploymentReduced
purchasing power
Under-utilized banking system
Inadequate money supply to economy
Individual’s credibility
not established
Deprivation – from resources and means
(credit) to acquire them
No access to credit
Effects of Proposal
Banking transactions
increased
Individuals credibility
established
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Poverty
UnemploymentReduced
purchasing power
Deprivation – from resources and means
(credit) to acquire them
Effects of Proposal
Industry, trade, supply
stimulated
Purchasing power
increased
Cheap & easy capital
Single point taxation system
Individuals credibility
established
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Effects of proposal
Terrorism
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
Adequate revenue with Government
Individuals credibility
established
Single point taxation system
No Black Money
Purchasing power
increased
Poverty
Industry, trade, supply
stimulated
ArthakrantiA design towards Principled, Prosperous & Peaceful living
Home
Effects of Proposal
Terrorism
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
Adequate revenue with Government
Individuals credibility
established
Single point taxation system
No Black Money
Purchasing power
increased
Social security
Industry, trade, supply
stimulated
Empowered Government
ArthakrantiA design towards Principled, Prosperous & Peaceful living
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ArthakrantiA design towards Principled, Prosperous & Peaceful living
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Jai Hind!