BUDGET 2020: GREAT EXPECTATIONS

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

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Railway Link:

http://apurvaopinion.blogspot.com/2017/01/indian-railways-can-earn-well-too.html

 
 

They came, They didn't play, They went!

BY APURVA RAI

IN sports when you play a match you are sure to get one winner and one loser. It is not possible to get either two winners or two losers. It is also not that the loser wanted to lose; in fact, both the teams play to win. So, at the end of the game while one team rejoices over its hard, good show and coordination the other team returns disappointed. 

Losing is very sad, disheartening and devastating. Once you lose there nothing but repentance over small mistakes that you could overcome but didn't. Crying over loss only proves your weakness; the strong ones take it sportingly, analyse the mistakes and learn how they can recover and come up with a fresh challenge and renewed energy. Losing does not give you a certificate of demerit, it actually reminds you where you lacked, what you didn't do but should have done.

Generally the losers are booed by the public but there are also times when the losers earn more respect than the winners. It is more important how you lost and under what circumstances. If you go down fighting you are all praise but if the team gives up then, of course, it has to face peoples' fury. 

Something similar happened at the ICC Cricket World Cup 2019 first semi final played between India and New Zealand on July 9. Team India, bubbling with past victories, confident of veteran players and cherished by a massive crowd at Old Trafford, Manchester, did not rise up to expectations. The tragic point is that the men in Blue themselves had not imagined that the show will be so poor.

The much-hyped first semi-final of cricket World Cup 2019 started well with New Zealand going to bat first. Everything was fine, the crowd was upbeat and both the teams played with all their might till the rain god intervened forcing the umpires to call it stumps. Next day, on July 10, the match recommences from where it was halted a day before. 

New Zealand innings was wrapped up at 239 for the loss of 8 wickets. Team India had 240 runs to chase. We have a reasonably good record in chasing even difficult more difficult targets but that day, perhaps, something else was destined to happen in Manchester. The Indian innings faltered right from the beginning despite a massive supportive crowd and loud cheers from fans who were present in abundance. The ladder to scale was not so high and Team India had done it umpteen times before. Sadly July 10 was not their day. The scoreboard which looked reachable now looked otherwise. 

Soon the stadium turns into a prayer ground where fan kept his fingers crossed.

Two players Ravindra Jadeja and former captain Mahanedra Singh Dhoni bring some rays of hope and the fans are once again up on their feet. The duo show strong determination with a record breaking 116 run partnership. Playing like a hero Jadeja scored 77 runs in 59 balls before returning to the pavillion.

Hopelessness descends all over the stadium as Dhoni is seen as the last saviour. Anxious fans cheer him and shout Dhoni-Dhoni. He has earned himself the reputation of being a responsible and capable batsman on the field and today was his last World Cup test. 

The bat didn't fire up and fell cold in the hands of Mr Cool, as Dhoni is known as. Dhoni too returns to the pavillion soon with 50 runs to his credit off 72 balls. Mahi would never have thought that 'The End' of his last World Cup innings would be so miserable.

Now the game was almost over leaving the fans disappointed as the bird in hand has flown away. 

 
The tailenders were a mere formality and the Indian innings summed up at 221 all out in 49.3 overs. India lost the match and its big hopes by a meagre 18 runs. 

The World Cup 2019 dream is shattered. 

WHO IS RESPONSIBLE FOR LOSS?

One show comes to an end but another one begins. Heartburns are felt on social media, some murmur, some whisper while some are fearless, vocal and outspoken. The blame game has begun. Who is responsible for the defeat? Fans are not wrong in their analysis that winning was not impossible and the score not too big to chase had even one or two more guys let out their ire on the ball and sent it across the boundary more frequently. 

Second Opinion feels that the onus of defeat goes to Dinesh Karthik who faced crucial 25 balls to score shameful 6 runs

on board. The other guy is Mr Cool whose bat too remained cold to the aggression that was expected of him. Dhoni had a personal score of 50 runs in 72 balls. Again heartbreaking. India lost by a small margin of 18 runs and this was posisible in just about 10 to 12 balls. So much time and balls wasted. No responsible team would ever let it happen. 

DHONI A BIGGER DEFAULTER?

Of the two, Second Opinion, feels Dhoni's role is unpardonale. He was on the crease at a very crucial hour. He knew he was on sinking ship and that only he was capable of bringing it to the shores. He, on the other hand, didn't show any resolve or grit at any point of time that he is in a hurry to bring the game to a happy end, both for the country and for himself. Had Mahi played with the average of one run to a ball India would have found a berth in the Finals of the 2019 World Cup! Throughout the crucial period he was on the crease but let the bird in hand fly away. If only he had played a little faster and better the mood would have been different today.

Dhoni played too slow. He failed to pass on the pressure on to bowlers. Its is the sense of responsibility that makes you impatient on the field. The former Indian captain was not playing a 'Mohalla Cricket'; he was representing India at an international event of high repute where his restlessness and enthusiasm should have been of the same level. Alas, nothing like this was witnessed by the crowd in the stadium or the fans at home.

Defeat is part of any game and should be taken sportingly. What is important is how you go down. You are subjected to peoples' wrath when you give up or do not show your resolve that you are serious. A good fight and a good chase goes down in memory lanes even if you the results do not favour you. 

Many people are suggesting, and rightly so, that it is time now that Dhoni should hang his gloves. He has a better life waiting for him away from the crickett field. 

As for Team India it has to trudge with never-say-die attitude. There are many more World Cups lined up for future and few of them will definitely fall in our lap. Of, course lessons will have to be learnt from present and past mistakes.