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We have discussed in detail in Part II with regard to serious economic
conditions of India where 50% of Revenue Receipts are spent towards
Interest Payment. Suggestions are also made how to reduce Interest
Payment Liability, and also how to reduce burden of Pay, Pension
and Allowances. We can achieve economic stability by taking three
major steps by reducing (i) Interest Payment Liability, (ii)
Pay, (iii) Dearness Allowance & other Allowances, (iv) Pension.
We will have to take major steps of increasing Revenue Receipts
in the budget and availability of the funds with the tax payers
and also giving him security of pension on payment of tax on his
retirement age. After 50 years of freedom we are not able to give
portable water to millions of people. Out of 5 lac primary schools,
1,50,000 primary schools do not have sufficient accommodation, building,
enough furniture and requisite number of teachers and 60% of population
is without basic needs of sanitation, viz. bathrooms and toilets.
We are not able to give housing accommodation to 40 crore people
who reside in hutments and make cheap arrangement without any water,
sanitation and drainage. In India, 6 crore people have got purchasing
power and multiply by 5 members of each one making 30 crore people
who are well placed. Out of total population of 100 crores, minus
30 crores, 70 crores remain. Out of 70 crores, 28 crores people
are below poverty line and remaining 44 crores are in unorganised
labor and the child labor consist of 7 crores. The Pay Revisions
are regularly done for organized employees only which consist of
2 crores 79 lacs and minimum wages of unorganized sector are not
revised simultaneously or even after passing number of years when
pay scales of Central and State Governments employees are revised
in 1986 and 1996 when Fourth Pay Commission Report and Fifty Pay
Commission Reports are published and implemented. In the IInd part
detailed discussion and remedies are suggested and IIIrd part of
the book provisions of Income-Tax are discussed and remedies are
suggested to increase revenue at low rate of income-tax and give
security to give pension on payment of income-tax to assessee of
65 years or above.
Only 6 crore people have got purchasing power on which our economy
runs, out of which only 3 crores 30 lacs file Income-tax Returns,
out of which lacs file returns who do not pay income-tax in view
of number of deductions and rebates. At least 6 crore assessees
in India should be brought in tax net and should have P. A. Number.
After 12 years of report of Dr. Chelliah Committee, we are not able
to do it due to the Scheme of Exemption and Rebate in Payment of
Income-Tax. Shri Yashvant Sinha, Minister of Finance, has projected
total direct tax target for 2002-03 at Rs.91,140 crores from personal
taxation and Corporate taxation, which was not achieved.
The writer has given the Provisions in Part-III of the book, which
Shri Kelkar Committee Report and Dr. Raja J. Chelliah Committee
Report have recommended to delete.
The writer has discussed with regard to personal taxation only and
similar attempt can be made for corporate-taxation. The writer is
of the opinion that Central Govt. can have target of Rs.1,50,000
(Rupees One lac Fifty thousand) from direct taxes instead of Rs.91,000
crores (Rupees Ninety one thousand crores) as projected in budget
of 2002-03.
Fiscal Responsibility and Budget Management Bill is passed and it
is provided in Section 4 of the said Act to reduce Fiscal Deficit
and eliminate revenue deficit on 31-3-2008. The Central Government
had borrowed about Rs.95,000/- crores every year for last two years
for non-plan expenditure namely :- Interest Payment, Defence, Pay,
Pension, Subsidies and Grants and Plan Expenditure is entirely from
borrowed funds.
The Central Government will have to raise revenue and curtail expenses
to the extent of Rs.1,25,000/- crore per year to eliminate revenue
deficit by 31-3-2008.
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