Arthakranti 2012 June 10 English

Arthakranti
A design towards Principled, Prosperous & Peaceful living
Home
Wednesday, August 22, 2012
Arthakranti
Presentation
Vision Social Reality Economic Reality
A design towards Principled, Prosperous & Peaceful living Animations Statistics
Home
Current Reality Loops

Local Industry Credit Cycle Internal Borrowings Banking System Disinvestment Anti-Social Industries High Denomination Currency Farmers Suicides FDI Credit Expansion Vision Social Reality
Economic Reality
Currency Calculations Denomination
Credit Establishment
Bank Money
Direct & Indirect tax
Proposal Effects of Proposal Strategy Appeal

Flawed Taxation System
Proposal
Appeal
Revenue after BTT
Commodity Prices
Proposed System
Strategy
Arthakranti
Vision
Home
Vasudhaiv Kutumbakam
Capital Formation
One Economy
Revenue for Effective Governance
Arthakranti
Social Reality
Home
Arthakranti
Economic Reality
Complex Taxation system
Home
Interest on External Debt
Cost of running Government
National Security
Infrastructure, Agriculture, Needs of Common man
Arthakranti
Effects of Fiscal Deficit on Local Industry
Home
Unemployment
Social Insecurities
Reduced Rural Purchasing Power
Uncompetitive Local Industry / Trade
Policies Influenced by Foreign Interests
Local Agriculture Rendered Uncompetitive
Poor Infrastructure
Attract FDI
Subsidies Curbed
Fiscal Deficit
Arthakranti
A design towards Principled, Prosperous & Peaceful living Effects of Fiscal Deficit on Credit Cycle & Government Revenue
Home
Unemployment
Inflation
Deficit Budget
Fiscal Deficit
Social Insecurities
Conservative Lending
Hard Credit Policy Purchasing power reduced NPAs Increase Inadequate Tax Revenue to Govt. Low Demand / Recession
Inadequate Capital Supply to Economy GDP Growth Slows Down
Arthakranti
Effects of Internal Borrowings on Fiscal Deficit
Home
Internal Borrowings
Spent on NonDevelopmental Activities
Fiscal Deficit
Inadequate Tax Revenue to Govt.
GDP Growth Slows Down
Arthakranti
Effects of Fiscal Policy & External Borrowings on Credit Policy & Banking System
Home
Threat to Local Banking System
National Policies Influenced
External Borrowings
Expensive Capital
Fiscal Deficit
Lending Rates Increase
Bank Interest Rates Increase
Tax Rebate + High Interest Rates on Savings
Arthakranti
Fiscal Deficit
A design towards Principled, Prosperous & Peaceful living Effects of Fiscal Deficit on Disinvestment Policies & Reduced Social Spending
Home
Pressure to Disinvestment
Threat to Organized Employment
Reduced Social Spending
Public - Private Partnership e.g. Toll
Govt. Control Lost in Essential Commodities [e.g. Oil, Medicines etc.]
Cost Burden Passed onto Common Man
Scope for Market Exploitation
Purchasing Power Reduced
Severe Impact on Weaker Sections
Social Insecurities
Arthakranti
Effects of Fiscal Deficit on Anti-Social Industries
Home
Increased Congestion, Accidents, Pollution
Social Insecurities
Promoting Increased use of Oil Automobiles
Direct Ill Effects on Public Health
Increase in oil Import Losses (Subsidies)
Lack of infrastructure / public amenities (e.g. public transport system)
Promotion of Liquor, Gutkha, Cigarettes
Promotion of State Run Lottery Schemes
Fiscal Deficit
Inadvertent Promotion of Anti-Social Industries
Arthakranti
A design towards Principled, Prosperous & Peaceful living Effects on Taxation System & High Denomination Currency
Home
Social Insecurities
Fiscal Deficit
Poor Governance
GDP Growth Slows Down
Inadequate Tax Revenue to Govt.
Parallel Economy
Corruption
Inadequate Capital Supply to Economy
High Input Costs
Tinkering of Taxation System
Black Money
Non Traceable Transactions
Flawed Taxation System Expensive Capital Less Use of Banking System
Tax Evasion Large Denomination Notes
Ease of Cash Transactions
Poor Credit / Capital Formation
Inflation
Fiscal Deficit
Arthakranti
Farmers Suicides
Home
Effects of Fiscal Deficit on Credit Cycle & Farmers Suicides
Social Unrest
Unjust Borrowings from Private Sources
Inflation
Deficit Budget
Fiscal Deficit
Low Credit Supply to Agriculture
Hard Credit Policy
Individuals Credibility NOT Established
Poor Credit / Capital Formation
Less Use of Banking System
Arthakranti
Flawed Taxation System
Home
Narrow Base and Limited Coverage of Direct Taxation

Direct to Indirect Tax Ratio is 40:60 Show Inequitable and hence Regressive Show Non-Productive Uncertain Inelastic
Show
Show Show Show Show Show Statistics
Uneconomical
Complex nature of taxes
Tax laws open for interpretation
How should it be
Show
Arthakranti
Home
Currency Denomination
Country
Per Capita Income
Highest Denomination
Per Capita Income / Highest Denomination
USA
$40,000
$100
400
UK
20,000
50
400
Japan
40,00,000
10,000
400
India
Rs. 46,000
Rs. 1,000
46
Currency Denomination Distribution
Arthakranti
Credit Establishment
Home
Less Use of Banking System Obstructs Credit Registration of a lot of Citizens in the National Economy
Arthakranti
Arthakranti Proposal
Home
Withdrawal of Existing Taxation System Completely (except Customs and Import Duties) Every Transaction routed through a bank will attract a certain deduction in appropriate percentage as Bank Transaction Tax i.e. Single Point Tax Deducted at Source (say 2 %) This deduction is to be effected on receiving/credit account only This deducted amount will be credited to different Government Levels like Central, State and Local (say 0.7%, 0.6% and 0.35% respectively) Transacting Bank will also have its share in this deducted amount as the bank has a key role to perform (say 0.35%) Withdrawal of High Denomination Currency (say above Rs. 50) Cash Transactions will not attract any tax Government should make legal provisions to restrict cash transactions up to a certain limit (say Rs. 2000)
Arthakranti
Effects of Arthakranti Proposal
Adequate Revenue to Government
Home
Tax Revenue Increases by Orders of Magnitude
Adequate Revenue to Govt.
Show
Increase in Banking Transactions
High Value Cash Transactions Not Practical
Bank Transaction Tax (Say 2%)
High Denomination Currency is Removed (Say above Rs. 50)
Legal Provision Made Restricting Cash Transactions up to a Certain Limit (Say Rs. 2000)
Existing Cash Deposited in Banks & Attracts BTT
Arthakranti

Anti-Social and AntiNational Elements Effectively Checked
Home
Black Money Eliminated
Opportunities for Corruption Eliminated
Tax Collection is Simplified
Fake Currency Eliminated
Arthakranti

Home
Industry Trade, Supply Stimulated
Market Demand Boosted
Purchasing Power of Society Increased
Increase in Banking Transactions Net Banking Revenue Increases
Cheap and Easy Capital
Part of BTT goes to Banks
Globally Competitive Interest Rates

Arthakranti

Home
Anti-social and antiIndustry national elements Trade, Supply effectively checked
Stimulated
Cheap and Easy Capital
Purchasing Power of Society Increases
Prices Drop
Show
Market Demand Boosted
Commodities and Services are FREED from Tax Influence
Focus Shifted to Innovation from Tax Manipulation
Arthakranti

Home
Money Supply Regulated
Adequate Revenue to Govt. Tax Revenue Increases by Orders of Magnitude
SLR Revised
Black Money is Converted into White
Arthakranti
Effects of Arthakranti Proposal Anti-Social and AntiNational Elements Effectively Checked
Home
Social Security Restored
Employment Opportunities
Empowered Government
Effective Governance
Cleansed Political System
Black Money Eliminated
Govt. Debts Checked
Fiscal Deficit Recovered
Budgetary Provision for Political System
Globally Competent Agro-Segment
Adequate Revenue to Govt.

Appropriate subsidies
Arthakranti
Increased Purchasing Power Building Individuals Credibility Cheap and Easy Credit Availability Revenue for Banking Budgetary Provision for Political System Creativity FREED from Tax Manipulation
Home
Decentralized Revenue Collection System
Elimination of Black Money
EMPOWERED INDIA
Elimination of Means & Motives for Corruption
Social Security Scheme

Industry, Trade, Supply Stimulated
Tax Burden Reduced with BTT

Adequate Revenue to run Govt. Programs
Arthakranti
Home
Arthakranti
Home
Jai Hind!
Arthakranti
Home
Back
Direct & Indirect Tax Revenue for Central & State Governments
Year
2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Centre Taxes
Direct 69197 83085 Indirect Total
State Taxes
Direct 13309 17714 20096 23375 30211 37579 43409 48125 Indirect 99921 Total 121887
Centre & State Taxes

Direct 82506 Indirect Total
117863 188603 133181 216266
226441 308947
108578 136634 100799 252101 352900 118920 153750 125186 282912 408097 133654 180417 156146 329229 485375 180235 210446 195412 381184 576596 212932 250511 267771 456252 724023 240940 284349 355607 521889 877496 293774 341899 393125 576723 969848
105090 149258 254348 132771 172187 304958 165206 200949 366150 230192 243320 473512 312198 280949 593147 345000 282949 627949
2009-2010 370000 271079 641079 53683 331698 385381 423683 602777 1026460 2010-2011 430000 316651 746651 174266 452881 627147 604266 769532 1161241
All figures in Rs. Crores
Arthakranti
Home
Back
Distribution of Central Govt. Direct & Indirect Tax Revenue
Arthakranti
Home
Back
Distribution of State Govt. Direct & Indirect Tax Revenue
Arthakranti
Home
Back
Distribution of Centre & State Govt. Combined Direct & Indirect Tax Revenue
Arthakranti
Home
Back
Centre & State Govt. - Direct & Indirect Tax revenue Distribution 2010-2011
Arthakranti
Home
Back
Currency Denomination Distribution

Year
2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Coins
6270 6972 7199 7351 7651 7761 9125 9657 10872 12328
Rs.2
538 483 472 462 451 447 636 665 698 851
Rs.5
1264 1739 2276 2086 1980 1887 2111 2271 2233 3430
Rs.10
11989 9088 7750 6770 6274 7155 9333 12222 185636 21288
Rs.20
1531 3425 4383 3876 4077 4178 4108 4399 4681 6040
Rs.50
35601 35191 33027 29941 27842 27951 26508 24440 21057 15980
Rs.100
118141 115386
Rs.500
68512 93813
Rs.1000
7179 15971 27473 42082 64346 93676 141219 191784 238252 302713
121442 122938 123282 152728 134637 182332 135444 225400 134575 263108 137028 308304 138364 364479 140243 445311
Arthakranti
Home
Back
Currency Denomination Distribution 2010-2011
Highest Three Denominations account for 94 % of the Total Currency Money while 78% of our Population earns Rs. 20 or less a day.
Arthakranti
Home
Back
Comparison of Currency Denomination Distribution: Indian Rupee & U. S. Dollar
Indian Rupee Indian Ru
U.S. Dollar
1000
100
100
500
Note: Absence of Denominations Larger Than $100 in U. S. and the fact that considerable part of the U. S. Currency in $100 and $50 Bills is in use outside U. S. . it being an International Currency.
Arthakranti
Credit Expansion through Banking System
Home
Banks A B C D E Eventually
Primary Deposits 20001 1800 1620 1458 1313 20,000
Cash Reserves
200 180 162 145 131 2000
Loans / Derivate Deposits 18002 1620 1458 1313 1182 18,0003
1 - Original Primary Deposit 2 - Original Excess Reserves 3 - Total Capital Formation through Credit Expansion with Original Primary Deposit of Rs. 2000
Arthakranti
Analysis of Commodity Prices
Home
Back
Product
MFG Cost 151
Taxes ~ 52
Sales Price ~ 300 47,875 73.18 / lit 40.91 / lit
Chinese Cost 72 25,000 All figures in rupees
Cement
Two wheeler (Activa)
34,223
46.20 / lit 34.39 / lit
13,652
26.98 / lit
Petrol
(Delhi)
Diesel
(Delhi)
Rs.13.91 subsidy
6.52 / lit
Includes taxes levied until the commodity is manufactured (e.g. Service Tax, Tax on fuel used for transport of commodities, etc.) & import duty
Arthakranti
Sample Calculations
Home
Narrow Money (M1) = Currency with public + Demand deposits

For year 2010-2011 Currency with public Demand deposits Narrow Money (M1)
= 9,50,000 = 7,18,000 = 16,68,000
Assuming 20% of M1 (Transaction Money) in daily transaction, Amount of money in daily transaction (D1) = 3,33,600 Amount of money in daily transaction (Y1) = D1*365 = 2,20,000*365 = 12,17,64,000
Considering 2% (notional) Transaction Tax in which share of Centre Government 0.7%, State Government 0.6%, Local Corporation 0.35%. Revenue for Centre (0.7%) and States (0.6%) Combined = Y1 * 1.3/100 = 12,17,64,000 *0.13 = 15,83,900
Revenue for States Revenue for Local Revenue for banks
(0.6%) (0.35%) (0.35%)
=~ 7,31,800 =~ 4,27,000 =~ 4,27,000
Arthakranti
Money Supply
Home
Transaction Money Country Unit Currency (A) 50 Demand Deposit (B) 222 Total (A + B) 272 Ratio B A
Australia
Bi Au $
4.44
China
Japan South Korea New Zealand Euro AREA Singapore UK USA India
Tr Yu
Tr Yen Tr Won Bi Nz $ Bi Euros Bi Sing $ Bi Bi $ Bi Rs.
5
75 38 3.74 847 24 54 1000 10200
24
443 98 27.84 3942 105 1055 1170 7100
29
518 136 31.58 4789 129 1109 2170 17300
4.80
5.91 2.58 7.44 4.65 4.37
19.54 1.17 0.70
Arthakranti
Home
Arthakranti
Home
Arthakranti
Home
Arthakranti
Home
Arthakranti
Home
Arthakranti
Dependency on FDI
Home
Arthakranti
Dependency on FDI
Home
China
India
Arthakranti
Home
Back
Revenue of Centre & State Governments (Combined)

2010-2011 Budget Probable Tax Collection Under T.T. System [0.7% Share Of the Centre + 0.6% Share of the States]
Total Revenue 11,61,240 15,83,000 + Import Duties 31,66,000 + Import Duties At 20% Transaction Ratio At 40% Transaction Ratio
Currency Money 9,50,000
Demand Deposits 7,18,000
Total Narrow Money (M1 = Currency Money + Demand Deposits) Rs.16,68,000 Crores with a moderate assumption of 20 to 40% of this amount to be active in daily transactions.
Arthakranti
The Arthakranti National Reform Bill
Home
Implementation
The Arthakranti Doctrine
Members of Parliament
The Citizens Charter of Demand
Political Leaders & Parties

Show
Business Leaders
Show
Experts
Show
Media
Show
Advertising Campaign Arthakranti Pratishthan Public Presentation Media Tools The Indian Citizen
Arthakranti
Home
Back
Arthakranti
Home
Back
Arthakranti
Home
Back
Arthakranti
Home
Back
Arthakranti
Home
Back
Arthakranti
Home
Back
Arthakranti
Home
Back
Arthakranti
Home
Back
Arthakranti
Home
Back
Arthakranti
Home
Back
Arthakranti
Government Officials
Home
Back
H.E. Smt.
Pratibhatai Patil,
Dr. Montek Singh Ahluwalia,

Deputy Chairman, Planning Commission (Book)
Dr. Bhalchandra Mungekar,

Member, Planning Commission (Presentation)
Hon. President of India (Personal meeting twice)
Dr. Adarsh Kishore Saxena Ex-Union Finance Secretary (Presentation in the presence of Smt. Pratibhatai Patil)
Mr. Johny Joseph Chief Secretary, Maharashtra (Presentation To CM, Maharashtra )
Mr. Agarwal Dr. Parthasarathy Shome,

Ex-Chief Economic Advisor to the Union Finance Minister (Presentation North Block)
Finance and Planning Secretary, Maharashtra (Presentation To CM, Maharashtra )
Mr. Sangith Rao Principal Secretary, Maharashtra (Presentation To CM, Maharashtra )
Arthakranti
Economists & Experts
Home
Back
Dr. D. R. Pendse
Dr. Narendra Jadhav
P B Sawant
Justice Supreme Court
M N Chaini
Chandrahas Deshpande Sunil Bhandare Jairaj Salgaonkar V. M. Govilkar R A Mashelkar
Arthakranti
Political Leaders Congress
Home
Back
Manmohan Singh, Hon. Prime Minister

(Book)
P. Chidambaram Union Finance Minister

(Book)
Sushil Kumar Shinde, Union Power Minister
Prithviraj Chavan
MOS, PMOs Office (Meeting)
V George P.A. to Smt Sonia Gandhi (Presentation)
Pawan Kumar Bansal, Minister of State for Finance (Presentation)
Vilasrao Deshmukh, CM, Maharashtra

(Presentation)
Arthakranti
Political Leaders BJP
Home
Back
LK Advani
Bhairon Singh Shekhawat
Yashwant Sinha
Arun Shourie
Sushma Swaraj
Balbir Punj
SS Ahluwalia
Gopinath Munde
Nitin Gadkari
Rajeev Chandrashekhar
Sompal Shastri
Vinay Sahasrabuddhe
Sudheendra Kulkarni
Arthakranti
Political Leaders Shiv Sena
Home
Back
Mohan Rawle
Suresh Prabhu
Political leaders
MNS
Raj Thackeray Shweta Paralkar
Rajan Shirodkar
Shishir Shinde
Arthakranti
Political Leaders NCP
Home
Back
Sharad Pawar
Jayant Patil
Political leaders
CPI
D Raja
Dr. Kango
Arthakranti
Industrialists
Home
Back
Deepak Ghaisas I-Flex solutions
Narayan Murthy Infosys
Arvind Padhye TCS Pune Center Head
Arthakranti
Media Experts
Home
Back
Kumar Ketkar Loksatta
Raju Parulekar E TV
Prem Shankar Jha Hindustan Times
Rajeev Khandekar Star TV Yamaji Malkar - Sakal
Arthakranti
Creative Artists
Home
Back
Vijay Tendulkar
Mangesh Tendulkar
Sachin Pilgaonkar
Ashok Saraf
Nivedita Saraf
Nina Kulkarni
Mohan Joshi
Kiran Shantaram
Atul Parchure
Prashant Damle
Swapnil Bandodkar
Arthakranti
Educational Institutions
Home
Back
Goa Commerce college Osmania university

NGOs
Loksatta
Maitri
i-Watch
Prayas (Reli group)
Arthakranti
Home
Arthakranti
Home
Jai Hind!

Arthakranti 2012 June 10 English

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Arthakranti 2012 June 10 English

Uploaded by

Copyright:

Available Formats

Arthakranti

A design towards Principled, Prosperous & Peaceful living

Wednesday, August 22, 2012

A design towards Principled, Prosperous & Peaceful living Animations Statistics

Current Reality Loops

Currency Calculations Denomination

Direct & Indirect tax

Proposal Effects of Proposal Strategy Appeal

Revenue after BTT

A design towards Principled, Prosperous & Peaceful living

Revenue for Effective Governance

A design towards Principled, Prosperous & Peaceful living

A design towards Principled, Prosperous & Peaceful living

Interest on External Debt

Cost of running Government

Infrastructure, Agriculture, Needs of Common man

A design towards Principled, Prosperous & Peaceful living

Uncompetitive Local Industry / Trade

Policies Influenced by Foreign Interests

Local Agriculture Rendered Uncompetitive

Inadequate Capital Supply to Economy GDP Growth Slows Down

A design towards Principled, Prosperous & Peaceful living

Spent on NonDevelopmental Activities

Inadequate Tax Revenue to Govt.

GDP Growth Slows Down

A design towards Principled, Prosperous & Peaceful living

Threat to Local Banking System

National Policies Influenced

Lending Rates Increase

Bank Interest Rates Increase

Tax Rebate + High Interest Rates on Savings

Threat to Organized Employment

Reduced Social Spending

Public - Private Partnership e.g. Toll

Govt. Control Lost in Essential Commodities [e.g. Oil, Medicines etc.]

Cost Burden Passed onto Common Man

Scope for Market Exploitation

Purchasing Power Reduced

Severe Impact on Weaker Sections

A design towards Principled, Prosperous & Peaceful living

Increased Congestion, Accidents, Pollution

Promoting Increased use of Oil Automobiles

Direct Ill Effects on Public Health

Increase in oil Import Losses (Subsidies)

Lack of infrastructure / public amenities (e.g. public transport system)

Promotion of Liquor, Gutkha, Cigarettes

Promotion of State Run Lottery Schemes

Inadvertent Promotion of Anti-Social Industries

GDP Growth Slows Down

Inadequate Tax Revenue to Govt.

Inadequate Capital Supply to Economy

High Input Costs

Tinkering of Taxation System

Non Traceable Transactions

Flawed Taxation System Expensive Capital Less Use of Banking System

Tax Evasion Large Denomination Notes

Ease of Cash Transactions

Poor Credit / Capital Formation

A design towards Principled, Prosperous & Peaceful living

Effects of Fiscal Deficit on Credit Cycle & Farmers Suicides

Unjust Borrowings from Private Sources

Low Credit Supply to Agriculture

Hard Credit Policy

Individuals Credibility NOT Established