By APURVA RAI
THE Finance Minister Nirmala Sitharaman is once
again set to present her second Budget for the year 2020. There are 'Great Expectations' from the
budget, as ever, particularly for the working class which seeks higher tax
rebate and price cuts by way of lowering of taxes in order to make a more
comfortable living.
On the other hand, it is an uphill task for the finance minister to ease the pressure of the aam admi while boosting the country's sagging economy. It has always been the challenge for any finance
minister to rise to the expectations of every section of society be it working
class, the business class, the industries, agriculture, farmers, imports and
exports, curbing black money, generating employment and much more. It is also a
reality that the finance minister cannot please everyone because sometimes it
becomes imperative to recommend bitter dose while taking care of the country's
economic health.
Like everyone else, I too have several hopes and
aspirations from the Budget which I have penned down here. I have my own
priorities and look at things from the angle of a common man who thinks of prosperous people, a
better society, financially stronger nation and a developed India.
I wish to see Nirmala's Budget addressing several
issues which, according to me, are important to curb free flow of black money,
open employment opportunities, rescue farmers from taking loans and giving a push to industrialisation in the country. Now it is for the experts to decide what can
be done and how.
INCOME
TAX
Talk
of the Budget and the first thing that strikes your mind is Income Tax. Every
common person is worried about income tax and next morning this goes on to make
the biggest news headline too. It is a natural feeling that we all want to live
a quality life and for that we strive to earn well and increase our incomes.
Since the income is taxed by the government we, naturally, wish to hide the
income so that we have maximum money in our hands. This is the primary reason
that every citizen of the country is primarily looking at tax reliefs in the
Budget every year.
There
are two entirely different sections in the society-- one who work as employees
and the other who are in business/ self-employed, whether small or big. Those
in jobs get their salaries where taxes are already deducted accordingly (TDS)
and the employee has no means to hide income.
On the other hand, the business/ the self-employed section need to declare their earnings/ income themselves
and file taxes accordingly. One has to trust what they declare themselves or through chartered accountant and file tax in the relevant tax slab. This leaves the scope for a wide gap between the 'actual income' and the 'declared income'.
I
am referring to roadside vendor selling samosas, chaat, paan
shops, vegetable vendors, local small shopkeepers like grocery stores, cloth
merchant, local sweet shop and eateries etc., private contractors, carpenters,
blacksmiths and so many others. We also know many of them doing brisk business and earning quite well. It is also a fact that they rarely file taxes and escape
saying they are 'poor' or daily earners. Even the IT department never thinks to bring them in
the tax net. On the contrary the reality is something else as most of these
people have multiple houses, vehicles to ride, their homes are equipped with
all basic necessities of good life according to their status and income. This section
of the society earns in cash, spends in cash and keeps minimal amount in banks.
They take full advantage of the loophole in the taxation system. These are the
people who have created a vicious cycle of earning, spending and hoarding cash because
such a lifestyle suits them while keeping the tax department at bay. It is here that large amount of 'black money' generates and circulates in the society. The Budget needs to break this cycle !
When
two different categories of people earn differently, declare their incomes
differently, spend differently then why should there be similar parameters for
income declaration and tax filing for them? I expect that the Nirmala's Budget
will take note of this loophole and bring many more under tax net.
In
fact, there should be two kinds of tax structure-- one for those in jobs or
employees and another for self employed/ business class. If you are in job you
file Form 16 but those doing their own private work should be brought under tax
net in a different structure.
Tax
Rebate
Those
in jobs and earning salaries are most worried about rebates in tax. And why
should they not worry as the salaries come after deducting TDS.
If the person is self employed he should be
filing taxes in an entirely different structure where there is minimal scope to
hide the income. The parameters may be property in his/ spouse name, vehicle in
his name, etc.
BLACK
MONEY
Corruption
and black money are major issues for the government. There is huge amount of
black money in circulation in the society and it goes widely unchecked because
people take advantage of the loopholes in the law. These people live in the
society with great pride, confidence and fearlessness. Most of the black money
comes or gets circulated in the society by the business/ self-employed people.
Those in service also get black money way of under-the-table earnings and live
a lavish life. This 'rich' class of the society is the most dangerous section
which spoils the neighborhood and family relations. I wish the Budget comes up
with a method to check them.
Forfeit
money/ property: If a corrupt person is nabbed or booked
all his property and other assets should forfeited which are disproportionate
to his income/ status. These corrupt people live fearlessly and are not worried
about their lives. They know that even if they are nabbed they will get
suspended, at the most. That doesn't bother them as they have their 'black
earnings' intact and can live a comfortable life once they have served their term.
The
Budget should make provisions that the assets and properties of such corrupt people
will now onwards be forfeited. This will also help in greater earning to government
exchequer.
Monitor
Cash Expenditure: There are millions of people all over
the country who prefer earning in cash, spending in cash and stocking cash. This is a vicious
lifestyle that suits them and helps them stay 'rich' yet hide their 'actual
income' from 'declared income'. Earn what you wish, declare what you wish and nobody is there to question you. I expect the
Budget 2020 should bring out a method to check cash expenditures.
In
our existing system one can conveniently and fearlessly spend 'black money'
earned in cash and yet no fingers raised. For example, buy any amount of petrol
in cash, travel in buses, trains, flights and pay in cash, go for local
shopping to any length and pay in cash, go to hotels and restaurants and pay in
cash. Do all this comfortably as many times as you wish with no questions asked, no doubts raised and no fear of
breaching law. Should the Budget not check it all !
EMPLOYMENT
Creating
more jobs has been the biggest challenge for any ruling government. Failure to
provide jobs gives the opposition a great opportunity to criticise the
government and make it a poll plank. However, jobs are not easy to create or
that they cannot be manufactured in a factory and distributed to the people. The
ruling government need to work on it strategically and win people.
Jobs
can be created in two sectors-- Industry and Agriculture.
INDUSTRY
The
Budget needs to encourage the industrial sector where more and more people can
get jobs.
Big
Industries/ Heavy Industries: In fact large scale
employment can be created if Budget makes provisions for big industries like
those in aviation sector or shipping sector. So far India does not have any
manufacturing in aviation industry. Similarly there is huge scope for expansion
in shipping industry.
1)
Aviation: The Budget should invite FDI in manufacturing of
fighter and/or commercial aircraft in India. This will allow mushrooming of
numerous smaller industries for supplies and thus create employment/ livelihood
for lakhs of people directly or indirectly.
2)
Shipping: The Modi government has lots of focus on trade/
tourism through waterways. However, we have not seen much in this sector. If
waterways is encouraged in right direction we will need lots of medium or large
scale industries in the shipping industry. The Budget can push industries in
this sector by allowing manufacture of small, medium and large boats, ships etc
which will generate good amount of employment.
Boats
and small ships also have great export potential which will boost country's
economy.
3)
Automobiles: India has seen enormous growth in auto
sector. Car ownership percentage has grown tremendously and there are millions of smiling
faces in the society. However most vehicles manufactured in India are for
domestic markets only. The export in its comparison is poor.
The
Budget should focus on manufacture of vehicles which are for exports only. This
means that the vehicles will be manufactured in India but sold in other
countries. One can expect more industries to come up in India and greater
number of people getting jobs/ work.
AGRICULTURE/
FOOD INDUSTRY
Food
is so important for us and so is agriculture or agro-industry. There exists a vast
scope to engage people in this sector.
Boosting agriculture will also reverse the trend of people rushing to cities.
Even
now India is not fully utilising its land for agriculture and harvesting.
Private
Investment: Agriculture production and condition of
farmers has been a major cause of worry for all ruling governments. Poor
condition of farmers, poor harvesting, poor techniques and poor marketing of
produce have been the root cause of miseries leading to unwanted politics.
It
is an irony and even unfortunate that a farmer, who is poor with no bank
balance, no assets and no assurance of income goes to the bank asking for loan so
that he can harvest the fields with no guarantee of the yields, its marketing and
totally unsure of the profits. The big question is that for whom the farmer is doing all this
exercise. The answer is that the farmer is taking so much of pains for all of
us living in urban areas, big cities and even have surplus money but do not
know where to invest. Then why not allow urban rich to invest in the
agriculture sector and relieve the farmer from the pains of loans. Why not
allow flow of money from cities to the villages? Why can't be an industrialist and farmer be partners an
harvest the land with mutual agreement which may come with the consent of Gram
Panchayat and all legal safeguards for the farmers?
I
wish the Budget allows urban investors to divert their funds to the
agricultural fields and rid the farmers of financial issues. If a person thinks
of starting an industry or factory in the city why can't he invest in farm
sector and take care of production and its cost in the village.
The
Budget may fix conditions allowing investments only and NOT the ownership of
land etc. Hopefully this will reduce the fear that farmers will lose lands
and become labourers.
Benefits:
This will have double benefit-- firstly, it will stop rush towards
cities and thus help control overcrowding of urban areas. Secondly, it
will increase production because the investor will take care of all production
needs and make sure higher yields are achieved. This means more production and
better marketing as well as complete check on hoarding. Thirdly, it will
help in reducing pollution as there will be increased greenery in the fields. Fourthly,
there will be employment generation too as the harvest needs to be marketed too
which requires a good number of manpower.
AGRO-INDUSTRIES:
The Budget needs to encourage such industries which are closer to agricultural
fields and the farmer can easily and conveniently sell his produce there. Such
industries will help generate employment at local level and also keep the
production cost at minimal thus, ultimately, keep the prices low.
For
example, a ketchup factory should come up at places where more tomatoes are
grown. Similarly coconut water can be packaged and marketed from such coastal
areas which produce more of coconuts. Apple jam can be made in Kashmir or
Himachal on larger scale instead of Maharashtra or Karnataka.
SENIOR
CITIZENS
The
society and the government is well aware of the poor condition of senior
citizens in our country. The government can strive to improve their condition
with the help of Budget.
Tax-free
pension: For all senior citizens above the age of 65 years
the pension should be completely tax-free. However, those between 60 to 65 years
of age continue to pay taxes as usual.
No
TDS on bank deposits: Every senior citizen above the age of
70 years can have any amount in his/her bank account/ term deposits without
bothering to pay a single paisa as tax. This means that bank earnings for all
senior citizens above the age of 70 years is completely tax-free. Firstly,
this will financially empower the old persons, secondly, it will give
them social security. Thirdly, when these people open bank accounts they
furnish proof of their citizenship, residence, domicile etc.
(You beat the
CAA/ NRC protests smartly).
Fourthly, the deposits with the banks go
up.
Free
Travel: The Budget should come up with a lucrative 'Travel
Scheme' allowing free travel to all senior citizens above the age of 65 years
of age once in two years to any domestic destination of their choice. The free
ticket availed comprises the base price only and the passenger will bear taxes/
other charges applicable.
The
catch is you should be a tax-payer to avail this facility, have valid Aadhar/
PAN number bank account etc. All bookings should require submission of valid documents and all payments to be made with debit cards/ Bhim-UPI only.
Again, (You beat the CAA/ NRC protests smartly).
This
will go a long way in boosting domestic tourism and related industry and also
generate local employment.
CHECK
POPULATION GROWTH
Continuously
growing population is a major cause of worry for every government as it
hampers all development work done so far. While it is not advisable to ask people
to adopt population control measures the Budget may come up with lucrative
schemes for smaller families.
POLLUTION
Environment
and growing pollution is yet another area that demands lot of Budgetary
provisions. We all know that our cities are fast becoming polluted and drastic
measures are needed to reverse this trend.
1)
Lease Greenbelts: There are green belts in all cities and
alongside highways. These green belts are poorly maintained and do not look as
green as they should be. One can find more of garbage lying there than
greenery. To encourage more plantation the Budget may allow private nurseries
to maintain these green belts on contractual basis. The advantage will be that
the government will earn substantial amount by way of allocating contracts and,
in return, these nurseries will be allowed to sell the produce grown in these
green belts. For example, if a nursery takes five km stretch on contract and
grows mango and jackfruit trees alongside the highway it shall be allowed to
sell the fruits.
2)
Lease Public Parks: In cities the colony parks are not
properly maintained. The Budget can permit RWAs to take these parks on contract and
maintain them. The contract shall be chargeable by the government.
3)
Solar Energy: There has been a lot of focus on
utilisation of solar energy. The results so far have not be very encouraging.
To encourage solar energy certain measures can be announced in the Budget:
a)
Small/ portable solar batteries: The Budget can make
special provisions to encourage manufacture of small/ portable solar batteries
which can be used to operate bicycles, cycle lamps, domestic bulbs, torches
etc.
b)
Solar products: There are many gadgets which can be
easily run on solar energy. The Budget should make special provisions for the
manufacture and marketing of innovative solar products so that they are easily
available in the local markets.
We
are continuously exposed to sunlight when we are on the move. Be it our vehicles
or our carry bags they receive uninterrupted sun light which needs to be tapped
and brought to use in various ways. The Budget may encourage manufacture and
sale of such useful solar gadgets.
Not
only this the Budget may promote solar industries to go for bigger exports
which will bring higher revenue for the government.
c)
Solar power in Apartments/ Townships: These days we are witnessing huge
construction activity in urban areas and a lot of high rise buildings are
coming up in different localities. The Budget should make it mandatory for the
builders to tap solar light and design their towers accordingly. If the towers
are designed properly they can be fitted with vertical solar panels to make use
of the sunlight.
Manufacture
and marketing of solar products will open new markets thus creating employment opportunities
for many people.
4)
Waste Management Plants: The Budget should make special
provisions for waste management plants on a large scale. This is necessary as
the energy generated from wastes may be put to better use.
CURTAIL
BLACK MONEY
Modi
government has be making efforts for cashless society but the dream remains unfulfilled.
This is because of wide circulation of liquid money, rightly called black
money, in our society. There are numerous 'local rich' people living with us
who poison the society with their affluent lifestyle as earning and spending in cash
suits them.
Cash
Expenditure: Spending cash money is proving
dangerous and the government has not been able to control it. Cash money is
widely spent in buying petrol without any check, hotels and restaurants, bus,
train and air tickets, shopping etc. There are no checks on the amount you
spend. Anybody can easily and fearlessly buy petrol for one lakh rupees every
month with no questions asked and still be branded as common man who lives hand
to mouth.
Housing:
Black money is widely spent in buying houses-- any number, anywhere in the
country. Lots of private builder apartments are coming up in cities but still
the needy remain homeless. The Budget should make provisions to restrict people
from buying any number of houses whether from the government agency or from any
private builder. It is the black money only which has made housing an
opportunity for investment whereas a home is one of the basic needs of
mankind-- roti, kapda aur makaan.
The
Budget should make it mandatory that no house or land can be registered without
quoting both the Aadhar number and PAN number. This will make it possible to
identify such people who have multiple houses/ land in their names or in the
names of their family members. No person should be allowed ownership of more
than one house in one city. After all, how many houses do you need to live?
(This
is also the smart way to beat the CAA/NRC protests as only legal residents will
be able to buy properties in India.)
Size
of House: The Budget can easily fix what size of house should
a person purchase by linking it to his/ her tax slab. If you declare less
income and pay taxes in the lowest slab then how is it possible for you to buy
a luxury penthouse or a huge apartment in a posh society? The thumb rule should
be that the property purchased by a person should be in proportion to the tax
slab he falls.
Benefit:
When there are lesser houses there is reduced construction and you finally get
a cleaner environment.
Buying
Cars: Black money is again used widely in buying cars
according to your whims and fancies. As a result we are losing on cleaner air
and seeing more of traffic jams, congestion on roads and vehicles parked on
roadside. The Budget needs to check the habit of buying cars as and when you
fancy. It should make it mandatory that once a car is purchased it cannot be
sold for five years, at least. Also, nobody should be allowed to buy more than
two cars within a span of three years.
Buying
luxury cars or cars with poor mileage should be heavily taxed. This will
encourage use of smaller cars, mileage-friendly vehicles and lead to lesser
traffic congestion and ultimately reduced pollution.
Money
saved by people but NOT spending in housing and vehicles can be used in investing
in agriculture, tourism etc.
CASHLESS
SOCIETY
Cashless
transactions has been the focal point of the Modi government but this has not
been a very successful. The Budget should make several provisions that
encourage cashless transactions.
1)
Government bookings: Go
to post offices and you need to pay cash. How sad? Want to pay telephone or
electricity bill you can easily find a cash counter. The Budget should
encourage cashless transactions in all government offices and even offer a
small discount on bills. This will encourage people to open and operate bank
accounts.
Want
to bus ticket from state roadways pay with your card, buying a train ticket pay
with your card, booking a parcel with Speed Post pay with your card. Even money
transfer (money order) should be cashless. The benefit will be that you will
have to open a bank account to get a Debit Card and make payments and opening a
bank account requires certain documentation.
(You
beat the CAA/ NRC protests smartly.)
2)
Cashless for shopkeepers: A lot of shopkeepers do not comply
with cashless moves. These shopkeepers insist on making payment in cash because
it suits their personal lifestyles and helps them declare lower than actual
income.
The
Budget should make it mandatory for all shopkeepers to maintain a POS machine.
If
this practice is checked then lot of liquid black money that is in circulation
in the society will come under scrutiny.
(You
beat the CAA/ NRC protests smartly.)
AGRICULTURE/ FARMER ISSUE
The farmers have been looking for various benefits
from the government. To help farmers the government should:
1) Kisan Malls:
The Budget should make provisions to open Kisan Malls in rural areas/ villages.
These malls can have all shops under one roof that meet the needs of a farmer.
Such malls need to be opened by businessmen, traders who have money and are
looking for investments. The purpose is to divert investments in rural sector
which will bring more modernity to rural life.
2) Marketing of produce:
The farmers should be free to sell their produce at their will. Agro-industries
around villages will help farmers get better prices. The state interference in
selling of agricultural produce should be minimised/ even abolished.
Investments by businessmen will give more economic
freedom to the farmers as they will not need to take loans for agriculture task.
All other agricultural requirements too shall be taken care of by the
investors.
RAILWAYS
The Railways has been running into losses and people
do not want any escalation in prices.
For better operations the Budget should segregate
the Railways into two entirely different segments:
a) Passenger Segment
b) Commercial Segment
The management of both the segments should be entirely
different/ separate within the ministry. The commercial segment will take care
of all goods trains, transportation of parcels and all other business
activities.
Budget should make provisions that the railway
stations for passenger trains and goods trains too are separate for the
convenience of people and ease of doing business.
To conclude I can say that the role of Budget is
much more than income tax rebate, price cuts and subsidies. If the finance
ministry stands firm it can transform the society with help of annual Budget.
Last but not the least, the finance minister needs to ensure that the good
effects of Budget are felt by the aam admi of our society and that
people lead a happy life.
NOTE:
Links for my previous articles on Budget:
2019: http://apurvaopinion.blogspot.com/2019/07/high-hopes-from-nirmala.html
2017: http://apurvaopinion.blogspot.com/2017/01/normal-0-false-false-false-en-us-x-none.html
2016: http://apurvaopinion.blogspot.com/2016/01/budget-2016-your-attention-please-mr.html
……………………………………
Railway Link:
http://apurvaopinion.blogspot.com/2017/01/indian-railways-can-earn-well-too.html
Lucky man he is as
it is not a mean task to rise above the rest and rule with huge mandate in the
national capital of Delhi; a city comprising of people from all sections of
society, different cultures and religions, varied age-groups, rich, poor,
intellectuals, service class, business class, politicians, famous and not so
famous to aam admi living a quiet life with his family. 
