Government will have to increase investment in productive projects and decrease spending on consumption. GOI will have to increase investment to increase real employment opportunities and stop voter friendly policies like MANREGA or Food for Scheme or Mid day meal or distributing gifts to voters on the eve of election.
Government will have to stop focusing on low interest regime which helps only Corporate sector and that to undesirable extent. Due to low interest rate, poor and middle class families do not want to keep their idle money in banks but prefer investing in Gold. Due to poor rate of interest available on deposits made in banks , rate of growth in house hold savings comes down and investment capacity of the government and the bank to invest in productive projects or lend for manufacturing or farm sector is adversely affected .
NOT only this, tendency of poor and middle class as also that of rich and super rich class to invest more in gold unnecessarily inflates demand of Gold and also give rise to unwarranted rise in import of gold. More and more investment in Gold not only affects bank's deposit base but also causes deficit trade balance and inflates current account deficit of the country.
Further rise in prices of land is caused by enhanced investment in land by common men as also by rich men instead of keeping money in banks. This give rise to rise in price of land, houses and ready made flats which again affects the purchasing capacity of common men. To add fuel to fire, Government has given all tax concessions to real estate builders to boost up demand of houses and thus helped builders to increase the prices of flats to undesirable and unreasonably higher extent.
As such it is necessary for GOI to revisit the policy of reformation, withdraw stimulus packages allowed in the name of global recession in the year 2008 and 2009 and make all economic policies friendly to common men and at the same time giving all encouragement to those who are real businessmen, who believes in regulated and reasonable price and who do not exploit common men only because they enjoy monopoly of business.
GOI will have to force super rich to contribute more and more for poor and common men and to contribute in social welfare scheme. At the same time politicians will have to stop exploiting corporate , rich and super rich class in the name of election and at the same time gear up administrative machinery to clear the pending projects in shortest time frame.
GOI will have to force super rich to contribute more and more for poor and common men and to contribute in social welfare scheme. At the same time politicians will have to stop exploiting corporate , rich and super rich class in the name of election and at the same time gear up administrative machinery to clear the pending projects in shortest time frame.
GOI will have to adopt Uniform Interest Rate regime as was prevalent before launch of reformation era in the year 1991.Unwarranted competition in interest rate structures among 28 nationalized banks which are daughters of the same government must be stopped in the interest of the bank and the country as a whole.
Transfer of business from one bank to other results in profit to one strong bank and loss to some other weak bank . After all they all banks are organs of the country and they should be dictated and governed by same set of policies.
Unwarranted war on interest rate among government banks results in loss of some banks and profit to other banks and ultimately affects the income of investors and depositors of some bank or the other. Focus of bank is centered on earning profit by competing in interest rate and not on increasing quality of their asset base and quality of their service standards which are prime requirement for the growth of the country.
RBI head Mr. Suba Rao or Mr. Manmohan Singh or Mr. Pranab Mukherjee or Mr. Chidambram or Mr. Montek Ahluwalia or the Manmohan team as a whole have totally failed in stopping relentless price rise during last five years and still they can do nothing to control price rise or to control inflation until they change their mindset, they change their policy framework , their style of governance and their habit of accusing BJP , NDA or state government for their failure.
Monetary measure undertaken by RBI after 2008 global recession were uncalled for and unwarranted, and now after the economy has already caused huge damage to the society and the economy of the country, the monetary steps taken by RBI and the government are absolutely inadequate to stop rising trend in prices and to control inflation . Entire efforts to control inflation will definitely and undoubtedly prove ineffective until they honestly and sincerely take corrective steps against rich businessmen who are exploiting poor consumers and who are merely serving the interest of politicians to serve their vested interest.
Freedom without restriction has caused enormous damage to the society and the economy during last two decades and this is why Mr. Manmohan Singh has been making promise after promise and extending time after time to control rising prices and to keep inflation within limit.
Entire world is suffering due to globalization and privatization. 85 countries of world including USA protested on 15th of October against policies of their government which are blindly supporting and acting for the benefit of rich class.
Profit making is beyond the control of present UPA government led by Doctor Economist Manmohan Singh and neither does the government want to regulate profit ratio of top trade houses or industrialists. Political class flourishes on the fund given by top businessmen of the country and hence they cannot imagine of taking any punitive action against exploitation perpetuated by top ranked rich people.
Incomes of common men and salaried class rise hardly at the rate of 2 to 3% per year whereas prices of all essential goods rises 20 to 30% per year. Due to this mismatch , most of Indian families are unable to afford essential goods and good education for their children and pressure of pain caused by this mismatch is slowly and consistently creating anger among poor and middle class people against the ruling government..
Capacity of 95% of Indians is coming down year after year in affording livelihood and it has become difficult for common men to spend peaceful and normal life. On the contrary wealth of top 500 rich houses has multiplied many times and reached to greater and greater height year after year. 95% of GDP and wealth of the country is in the hands of top 500 to 1000 houses. Living style of top 5% of population has become a thorn in the eye of bottom 95%of population.
Gap between rich and poor has widened to intolerable extent and this is why national unrest is growing day and day, year after year throughout the country. India is facing economic crisis because it adopted the policies of reformation without the strict provisions of regulation, control and punitive action. Government completely failed to ensure equal and judicious distribution of GDP growth said to have been achieved by government due to policies of reformation.
Results expected boon from the policies of globalization and privatization instead of becoming boon for common men have become curse for the society and for the nation as a whole only due to persons like Manmohan Singh and his team named above who were and who are said to be pioneer and front runner in implementation of policies of liberalization and privatization in the world. It is undoubtedly true that wealth of top politicians and officers along with top ranked businessmen houses have grown hundreds of times during the regime of Mr. Manmohan Singh.
Transfer of business from one bank to other results in profit to one strong bank and loss to some other weak bank . After all they all banks are organs of the country and they should be dictated and governed by same set of policies.
Unwarranted war on interest rate among government banks results in loss of some banks and profit to other banks and ultimately affects the income of investors and depositors of some bank or the other. Focus of bank is centered on earning profit by competing in interest rate and not on increasing quality of their asset base and quality of their service standards which are prime requirement for the growth of the country.
RBI head Mr. Suba Rao or Mr. Manmohan Singh or Mr. Pranab Mukherjee or Mr. Chidambram or Mr. Montek Ahluwalia or the Manmohan team as a whole have totally failed in stopping relentless price rise during last five years and still they can do nothing to control price rise or to control inflation until they change their mindset, they change their policy framework , their style of governance and their habit of accusing BJP , NDA or state government for their failure.
Monetary measure undertaken by RBI after 2008 global recession were uncalled for and unwarranted, and now after the economy has already caused huge damage to the society and the economy of the country, the monetary steps taken by RBI and the government are absolutely inadequate to stop rising trend in prices and to control inflation . Entire efforts to control inflation will definitely and undoubtedly prove ineffective until they honestly and sincerely take corrective steps against rich businessmen who are exploiting poor consumers and who are merely serving the interest of politicians to serve their vested interest.
Freedom without restriction has caused enormous damage to the society and the economy during last two decades and this is why Mr. Manmohan Singh has been making promise after promise and extending time after time to control rising prices and to keep inflation within limit.
Entire world is suffering due to globalization and privatization. 85 countries of world including USA protested on 15th of October against policies of their government which are blindly supporting and acting for the benefit of rich class.
Profit making is beyond the control of present UPA government led by Doctor Economist Manmohan Singh and neither does the government want to regulate profit ratio of top trade houses or industrialists. Political class flourishes on the fund given by top businessmen of the country and hence they cannot imagine of taking any punitive action against exploitation perpetuated by top ranked rich people.
Incomes of common men and salaried class rise hardly at the rate of 2 to 3% per year whereas prices of all essential goods rises 20 to 30% per year. Due to this mismatch , most of Indian families are unable to afford essential goods and good education for their children and pressure of pain caused by this mismatch is slowly and consistently creating anger among poor and middle class people against the ruling government..
Capacity of 95% of Indians is coming down year after year in affording livelihood and it has become difficult for common men to spend peaceful and normal life. On the contrary wealth of top 500 rich houses has multiplied many times and reached to greater and greater height year after year. 95% of GDP and wealth of the country is in the hands of top 500 to 1000 houses. Living style of top 5% of population has become a thorn in the eye of bottom 95%of population.
Gap between rich and poor has widened to intolerable extent and this is why national unrest is growing day and day, year after year throughout the country. India is facing economic crisis because it adopted the policies of reformation without the strict provisions of regulation, control and punitive action. Government completely failed to ensure equal and judicious distribution of GDP growth said to have been achieved by government due to policies of reformation.
Results expected boon from the policies of globalization and privatization instead of becoming boon for common men have become curse for the society and for the nation as a whole only due to persons like Manmohan Singh and his team named above who were and who are said to be pioneer and front runner in implementation of policies of liberalization and privatization in the world. It is undoubtedly true that wealth of top politicians and officers along with top ranked businessmen houses have grown hundreds of times during the regime of Mr. Manmohan Singh.
Tax the super-rich at a higher rate: C Rangarajan, PMEAC chairman
NEW DELHI: C Rangarajan, a key economic advisor to Prime Minister Manmohan Singh, has said the government could consider imposing a marginal tax rate higher than the current 30% on those with "substantially higher income", becoming the first Indian policymaker to contemplate higher taxes after the US raised taxes on the wealthy for the first time in two decades.
"We must debate unconventional ideas. Fiscal deficitcannot be contained by curbing expenditure alone; we must raise revenue as well. We have to think of not just administering existing taxes better, but also of new ones. Why can't we think of having a rate of tax higher than the current peak of 30% on substantially higher incomes?" Rangarajan told ET in an interview.
The veteran economist, a former RBI governor, also called for rethinking the current policy under which dividends were tax-free in the hands of investors, though companies pay a dividend distribution tax of 16%. In the conversation with this paper, Rangarajan questioned the logic of taxing dividends at a rate lower than the top marginal tax rate.
But these leaps of taxing innovation, he cautioned, will have to wait till sentiment has revived and the economy has resumed its growth momentum. "I am not saying that we should rush in as sentiment is just now picking up, and we should not create a situation where what we have gained is lost. But at the same time, we need to look at the various possibilities of raising revenues," he said.
India taxes income at three rates - 10%, 20% and 30% - though the actual top rate is higher, at around 33%, due to various surcharges. These rates were fixed in 1997 by Finance Minister P Chidambaram, who held the portfolio at the time.
At a lecture to honour Raja Chelliah, a function presided over by Rangarajan, Chidambaram called for a debate on inheritance tax.
Earlier this week, the US Congress voted for raising taxes on rich Americans, as part of the resolution of the crisis over the so-called fiscal cliff. The US legislation raises taxes on individuals earning more than $400,000 per year, and on couples earning more than $450,000.
NEW DELHI: C Rangarajan, a key economic advisor to Prime Minister Manmohan Singh, has said the government could consider imposing a marginal tax rate higher than the current 30% on those with "substantially higher income", becoming the first Indian policymaker to contemplate higher taxes after the US raised taxes on the wealthy for the first time in two decades.
"We must debate unconventional ideas. Fiscal deficitcannot be contained by curbing expenditure alone; we must raise revenue as well. We have to think of not just administering existing taxes better, but also of new ones. Why can't we think of having a rate of tax higher than the current peak of 30% on substantially higher incomes?" Rangarajan told ET in an interview.
The veteran economist, a former RBI governor, also called for rethinking the current policy under which dividends were tax-free in the hands of investors, though companies pay a dividend distribution tax of 16%. In the conversation with this paper, Rangarajan questioned the logic of taxing dividends at a rate lower than the top marginal tax rate.
But these leaps of taxing innovation, he cautioned, will have to wait till sentiment has revived and the economy has resumed its growth momentum. "I am not saying that we should rush in as sentiment is just now picking up, and we should not create a situation where what we have gained is lost. But at the same time, we need to look at the various possibilities of raising revenues," he said.
India taxes income at three rates - 10%, 20% and 30% - though the actual top rate is higher, at around 33%, due to various surcharges. These rates were fixed in 1997 by Finance Minister P Chidambaram, who held the portfolio at the time.
At a lecture to honour Raja Chelliah, a function presided over by Rangarajan, Chidambaram called for a debate on inheritance tax.
Earlier this week, the US Congress voted for raising taxes on rich Americans, as part of the resolution of the crisis over the so-called fiscal cliff. The US legislation raises taxes on individuals earning more than $400,000 per year, and on couples earning more than $450,000.
"We must debate unconventional ideas. Fiscal deficitcannot be contained by curbing expenditure alone; we must raise revenue as well. We have to think of not just administering existing taxes better, but also of new ones. Why can't we think of having a rate of tax higher than the current peak of 30% on substantially higher incomes?" Rangarajan told ET in an interview.
The veteran economist, a former RBI governor, also called for rethinking the current policy under which dividends were tax-free in the hands of investors, though companies pay a dividend distribution tax of 16%. In the conversation with this paper, Rangarajan questioned the logic of taxing dividends at a rate lower than the top marginal tax rate.
But these leaps of taxing innovation, he cautioned, will have to wait till sentiment has revived and the economy has resumed its growth momentum. "I am not saying that we should rush in as sentiment is just now picking up, and we should not create a situation where what we have gained is lost. But at the same time, we need to look at the various possibilities of raising revenues," he said.
India taxes income at three rates - 10%, 20% and 30% - though the actual top rate is higher, at around 33%, due to various surcharges. These rates were fixed in 1997 by Finance Minister P Chidambaram, who held the portfolio at the time.
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At a lecture to honour Raja Chelliah, a function presided over by Rangarajan, Chidambaram called for a debate on inheritance tax.
Earlier this week, the US Congress voted for raising taxes on rich Americans, as part of the resolution of the crisis over the so-called fiscal cliff. The US legislation raises taxes on individuals earning more than $400,000 per year, and on couples earning more than $450,000.
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