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 )
