Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Saturday, 30 January 2016

STRUCTURAL REFORMS ?


Speaking at the Global Business Summit yesterday , Shri Arun Jaitley said :

"  We will introduce Structural Reforms in the forthcoming Union Budget "

What is the current structure of Union Budget ?

#  SOURCES of REVENUE

    *  Taxes ( Direct + Indirect )
    *  Borrowings ( Domestic + Foreign )
    *  Sale / Leasing of Assets ( PSUs + Natural National Resources )

#   DEPLOYMENT of REVENUE

    *  Administrative Expenses ( Salaries / Pensions / Maintenance / Subsidies , etc )
    *  Interest ( + Principal Amount ) on borrowings
    *  Developmental Expenses ( Creation of new Assets / Infrastructure )
    *  Lending

Broadly speaking , this is the current structure

Most of the time , all that the successive Finance Ministers have done is to slightly " Increase / Decrease " the " Sources and / or Deployment " of the funds , here and there

Once in a while , some Finance Minister , even introduced  altogether NEW source or a NEW way to spend the revenue !

But so far , no one has attempted to change the  FUNDAMENTAL STRUCTURE  !

I wonder whether Shri Jaitleyji's BUDGETARY  REFORMS would incorporate the following Structural Changes for which , I have sent to him ( and to most of his cabinet colleagues ), dozens of emails ? :


*  Total abolition of Personal Income Tax (  Revenue Loss of approx Rs 2.5 lakh*crores  )

*  Introduction of 2% Bank Transaction Tax - BTT  (  Revenue Gain of Rs 15 lakh*crores  )

*  Decreasing Corporate tax slab-rates based on No of permanent employees ( to encourage job creation )

*  Perpetual Amnesty Scheme ( no questions asked as to the source for CASH deposits in Jan Dhan Accounts , if
    funds from these Accounts are invested in Govt approved INFRASTRUCTURE SPVs  )

    So far , Rs 30,000 Crores have been deposited in Jan Dhan Accounts . With introduction of this REFORM ,
    that figure will rise a thousand times to Rs 30,000,000 Crores , within one year  !

    These investments will generate 10 million jobs each year and raise our GDP to 10 % in 2016-17 !

*  Transferring 10% of GST ( ie 1.8 % out of 18 % ) to PPF accounts of the buyers ( increase Domestic Savings )

*  Embedding of RFID chips in Currency Note ( read Kurzweilai.net ) to solve twin problems of BLACK MONEY and CORRUPTION


*  Introducing " Budgeting By Objectives " ( instead of Monetary Allocations, setting Physical Targets for Ministers )


*  Quarterly  Performance Review of " Targets vs Actual Achievements " to be published on Govt web sites

*  Thru an Online Opinion Poll , involving citizens in framing of the Ministry-wise Physical Targets before the budget



After second World War , German Economy was in shambles

68 years later , Germans are still thanking their then finance minister , Ludwig Erhard , for the miracle  ("Wirtschaftswunder," German for "economic miracle")
he brought through his " Out of the Box " reforms to revive the German Economy

I hope Shri Jaitley displays similar courage on 29 Feb 2016 - even if he is not bothered being remembered or not  !

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hemenparekh.in / blogs

31  Jan  2016

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Make    Yourself    Heard

Dear Visitor :

It is time for YOU to speak up - and demand that YOU are heard

By emailing this suggestion - incorporating your OWN improvements - to the following Policy Makers

(  Just multiple copy all the following Email IDs into the Recipient column of your Outlook and Copy / paste this suggestion in the Message Box ) :


    narendramodi1234@gmail.com; 38ashokroad@gmail.com;ajaitley@del5.vsnl.net.in; jayant.sinha19@sansad.nic.in;piyush.goyal@gov.in;nitin.gadkari@nic.in; spprabhu1@rediffmail.com;bandaru@sansad.nic.in;smritizirani@nic.in;nsitharaman@nic.in; ravis@sansad.nic.in;sureshprabhu@irctc.co.in;prakash.j@sansad.nic.in;secy-ipp@nic.in; amitabh.kant@nic.in; shaktikanta.das@nic.in; rsecy@nic.in; adhia1981@gmail.com; ceo-niti@nic.in; atul-chaturvedi@nic.in; uma.bharati@sansad.nic.in; d.pradhan@sansad.nic.in; rprudy.office@gmail.com; rudypr@rediffmail.com; eam@mea.gov.in; mosvks@mea.gov.in; mvnaidu@sansad.nic.in; mnaqvi@sansad.nic.in; rao.inderjit@sansad.nic.in; mljoffice@gov.in; sadananda.gowda@sansad.nic.in; ministerminority@gov.in; najmah@sansad.nic.in; minister-ca@nic.in; ramvilas.paswan@sansad.nic.in; gandhim@sansad.nic.in; akumar-alpha@sansad.nic.in; jpnadda@sansad.nic.in; hm.moca@nic.in; geete@sansad.nic.in; simratbadal@yahoo.com; ns.tomar@nic.in; rmsingh@sansad.nic.in; tc.gehlot@sansad.nic.in; dr.harshvardhan@sansad.nic.in   




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