Wednesday, 15 December 2021

Congratulations, Nitinbhai

 


 

 

What for ?

For once again “ thinking out-of-the-box “


Can you give an example ?

Yes

He wants “ poor people of India “ to fund highway construction projects


Here is that report :

 Govt exploring public financing for road infra projects: Nitin Gadkari   /  MoneyControl / 15 Dec 2021

Extract :

The government is working on a scheme to raise funds from the public at 6 per cent annual interest rate for road infrastructure projects, union minister Nitin Gadkari said on Wednesday in the Rajya Sabha.

"… We are working on a scheme to raise funds from the poor and ordinary persons for road projects. We will raise funds at 6 per cent annual interest rate which is higher than what banks provide,” he said in the Upper House.

This will benefit the public as they will get a fixed return, he added.

He said there has been a 55 per cent increase in construction of highway road to 1,40,936 km now which will further increase to 2 lakh km under Gati Shakti Bharatmala project.

 

Background :

On October 13, PM Modi had launched the ₹ 100 lakh crore national master plan for multi-modal connectivity to develop infrastructure to decrease the logistic costs and boost the economy.

( source : https://www.ndtv.com/business/gati-shakti-national-master-plan-101-projects-identified-under-gati-shakti-to-enhance-port-connectivity-says-minister-2624576 )

 

Dear Nitinbhai,

We are a “ Nation in a Great Hurry “. Infra projects like Gati Shakti Bharatmala, can raise our economy to a higher orbit, besides providing jobs to millions


But I have serious doubts that offering to general public, a fixed annual interest of 6 % ( much like a Fixed Deposit with a bank ), can help raise Rs 100 lakh crore


Now Rs 100 lakh crores is approx USD 1333  billion . This is almost TEN TIMES the total tax collection of Govt of India from its citizens.


And India’s GDP is USD 2660 billion ( Est for 2020 )


No doubt, we do not need all of that USD 1333 Billion in one go, right away


But, I think you would want to immediately raise, at least, USD 400 Billion, to begin with


Can your scheme motivate 10 million Indians to contribute $ 40,000 ( Rs 30 Lakh ) each ?


I have serious doubts !


I strongly urge you to modify your proposal as suggested in my following earlier e-mail :


Congratulations, Shri Surjit Bhallaji, …………………….[ 31 Oct 2019 ]

 

Extract :

Ø  Under a BLACK MONEY AMNESTY SCHEME , all hidden income deposited in Infrastructure Bank Accounts ( similar to Jan Dhan Accounts ), can only be used for investing in Govt Infrastructure SPVs , with a lock-in period of 10 years and all interest / dividend to be only credited to such Infrastructure Bank Accounts and no money can be withdrawn from such accounts for specified period

 

Ø  Dear Madam Nirmala Sitharamanji,


 I urge you to accept the recommendation made by Shri Surjit Bhallaji and implement it with the following modification :


Ø  Reduce tax liability from proposed 15 % to 0 %

 

Ø  Full amount disclosed must be invested in Govt Infra Bonds

 

Ø  Bonds to pay annual interest @ 5 % ( but cannot be withdrawn for 10 years )

 

Ø  No questions / No litigations / No penalty / No re-opening of past tax-returns

 

With this modification, it is possible to raise $ 1,000 Billion ( extrapolating from the example set by Indonesia ), within 6 months

 

 

With regards,

Hemen Parekh  /  16 Dec 2021  /  hcp@RecruitGuru.com

 

Related Readings :

 

Indonesia Shows the Way………………………[ 23 Dec 2016 ]


Extract :

This Indonesian Miracle must be viewed in light of following estimates of India's Black Money :

 *   At 12 % of GDP ( $ 2300 Billion ), our BLACK MONEY economy = $ 276 billion ( Rs 185 Lakh*crore )

 

Now imagine , if we too had offered PMGKY ( Prime Minister's Gareeb Kalyan Yojana ) , to our black money hoarders , at 5 % tax rate ( instead of 50 % announced )

We could have managed to get them to deposit / declare , Rs 100 lakh*crore ( out of Rs 185 lakh*crore ) , with 90 % amount being declared by " You know Who ? "

And  government would have collected , Rs 5 lakh* crore  by way of tax

Perhaps enough to abolish Personal Income Tax from 2017 onwards !

We could have done much better than Indonesia - and 5 years ago - had UPA government considered my following blog / suggestion :

 

Magic Wand ……………[ 09 June 2011 ]

 

 


 

 

 

 

 

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