Manifesto Misconduct ?

In its manifesto released yesterday , Congress has promised to create 10 Crore ( = 100 million ) new jobs in next 5 years , if voted to power

Now , EC's Model Code of Conduct tells political parties ,

"  If you make any promise in your manifesto , you must also spell out , how

   you are going to fund it ; how - and from where - you are planning to

   raise the money to fulfill your promise  "

No such explanation / clarification in Congress Manifesto  !

Only EC can say whether this is a blatant violation of Code of Conduct

Provided , BJP / AAP lodge a complaint with the EC

But BJP / AAP can do better than just lodge a complaint

In their own respective manifestos , they too , can promise to generate 100 million new jobs in 5 years , if voted to power

But strictly , in

>   Organized  Private  Sector

>   Un-organized  Private  Sector

>   Self - Employed  Sector

Now each job will require an additional Capital ( fixed + working ) of Rs 1 million , on an average

That means , these Sectors ( not the Government ) will need to raise ,

>  Rs  1 million * 100 million  ( Rs 10 Lakh * Crores )

If voted to power , we ( BJP / AAP ) will enable these Sectors to raise this amount of funds thru introduction of following schemes :

>    BLACK  MONEY  AMNESTY  SCHEME

These Sectors will be allowed to invest their Black Money ( whether stashed locally or abroad ) in specific , Government - Approved , " Infrastructure Bonds " . No questions will be asked as to the source of the funds and the interest earned will be tax-free for a period of 10 years

>    JOB  GENERATION  SCHEME

Since the emphasis is on Job Generation , companies will be " incentivized " to hire more permanent persons

The incentive will be in the form of reducing Corporate Income Tax ( % ) as a company's employment goes up by setting in motion , " INVERSION  of JOB  REDUCTION " regime , under which ,

"  The more jobs a company creates , the less Corporate Tax it pays "

Example :

> Up to employment of 100 persons  ............................... 30 %  tax

> 101  -  500 persons....................................................  25  %

>  501 - 1000 persons ...................................................  20  %

>  1001 - 5000 persons ..................................................  15  %

>  5001 - 10,000 persons 

................................................. 10  %

>  Above 10,000 persons .................................................    5  %

Let us celebrate those who provide employment to large number of persons

>  DOWN-SIZE   GOVERNMENT    SCHEME

*  Government is already over-staffed . It is hiring 4 persons to do the work of one  !

Hence , no new jobs will be created in Government or in PSUs for next 5 years

There will be a " Recruitment Freeze " in government - except for the defense services

Government  /  PSU employment will be allowed to shrink thru resignations / retirements / deaths etc , by adopting the rule of " No Replacements "

>  SELF  EMPLOYEMENT  SCHEME

Every unemployed person registering under this scheme will get an interest - free loan of Rs 50,000 / - from any scheduled bank where he / she opens a bank account , repayable in 10 years. Central Government will insure these loan-re-payments

A suitable mechanism will be put in place to prevent misuses such as ,

*  Duplicate loans from different banks

*  Already employed persons applying for loans

*  A loan-taker taking up  a job after availing a loan

>   HONESTY  REWARD  SCHEME

" Inverse " the " Personal Income Tax " slabs as follows :

>  Up to  Rs 5 lakhs..................... NIL  tax

>  5.1  - 10 lakhs.......................  8 %

>  10.1 - 20 lakhs......................  6 %

>  20.1  - 50 lakhs.....................  5 %

>  50.1 - 100 lakhs.....................  3 %

>  Above 100 lakhs......................  1 %

This will encourage tax-payers to honestly declare their entire income and eliminate tax-evasion / black money generation at the very source itself  !

Under such a scheme , Rs 5 * Lakh * Crores worth of estimated Black Money will return to the official " White Money " banking stream , during FY 2014-15 itself  !

Can you imagine everyone wanting a " Cheque Payment " only  !

And this White Money will get deployed in the CAPITAL MARKET , officially !


With this , we expect SENSEX to cross 50,000 by 2019 !

Listed " Private Sector " companies will be able to attract funds at very low interest rates and deploy these for creating productive assets / employment

These funds will also encourage Private Sector companies to take up long duration Infrastructure Projects - without asking the Governments to guarantee " Viability Gap Funding "

>  CAPITAL  ASSETS  CREATION  SCHEME

Under this scheme , companies will be granted an " Accelerated  Depreciation " on incremental Capital Assets created  during the year

This will encourage companies to plough back their profits into creating manufacturing capacities , thereby improving the contribution of manufacturing to our GDP


Simultaneously , this will give a big boost to India's Capital Goods Industry - the mother of all industries

I hope the Manifesto - Writers of BJP /  AAP  etc examine these schemes and ask of themselves ,

"  Will these meet EC's Code of Conduct  ?  "

And , will these Manifesto Authors dare to promise ,

" If voted to power , we will enact a law that makes each Manifesto , a legally binding Contract between the people of India and the party making the promises - breach of which , will be punishable by a jail term , of not less than 10 years " 

*   hemen  parekh  ( 27 March 2014 / Mumbai )