Is India poor?
Its a good question but when you look at the records of how much black money the corrupt and the rich have stashed away in Swiss banks, you realize that the amount of “dirty money” is more black money than the rest of the world combined!! The figure is $1.5 Trillion (~ 13% of world’s total $11.5 trillion).
And here is the sad part:
The USD 11.5 trillion of assets held offshore would generate a return of about USD 860 billion a year at a 7.5% rate of return, and a consequent tax loss of USD 250+ billion for sovereign nations, more than three times the OECD countries’ official development assistance to the entire world.
There is a reason why the tax system and law policing in India should be better! Despite being the country with the largest booty stashed in off shore accounts, India still has been growing substantially! Imagine if all this wealth could have been harnessed for the country’s use?
Surprisingly, India — still regarded as a poor country by many — has USD 1.5 trillion in Swiss banks, which is more black money than the rest of the world combined. This is thought to be unaccounted money earned in India by inappropriate means as otherwise any Indian citizen or corporation wishing to open a bank account abroad has to take permission from the Reserve Bank of India and records do not show any such permissions granted for deposits in Switzerland. A 2006 report of the Swiss Banking Association claims Indians are the biggest depositors of black money in banks located in Switzerland. Top five countries in terms of such deposits are:
India: USD 1,456 billion
Russia: USD 470 billion
United Kingdom: USD 390 billion
Ukraine: USD 100 billion
China: USD 96 billion
Source: Intentblog
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The Art of Spending (Black Money)
As nearly every local municipal leaders, nearly every MLAs, MPs, Ministers and nearly all Government Officials of State and Central Government along with large industrialists have perfected the art of avoiding the money to land into treasury or government income account by all sorts of revenue and taxes, they all have perfected the art of converting government earnings into black money. They also have perfected the art of snatching income of farmers, labourers, workmen, employees and servants and converting the same into black money.
Since most of the senior political leaders, MPs, MLAs and all major & famous industrialists are holding most of the black money outside india, it is but natural that ruling government is avoiding to declare the details and avoiding to bring the black money inside india.
This article is for that situation when ultimately the government of India decides to bring the black money inside india.
Then the question will be how to avoid these perfect snatchers from again snatching the money kept in outside india bank accounts by way of secret accounts i.e. BLACK MONEY.
The government of india even having knowledge of the money, where it is kept and the procedure to bring the same into india is finding very very difficult to keep the corrupts hands off from this black money.
Direct and sudden danger:-(danger inside government)The central and/or state governments or ministers or officials may miuse the money 1) by using the same for importing low quality goods for higher prices and accept bribe in terms of gold.2) for foreign tours, foreign real estate investment etc.., 3) for defense, computer, chemical or any type of technology purchase which is basically not required and sideline huge amount for their personal gains.4) For funding of earth saving scheme, environment protection schemes, scientific projects, space research, atomic research, social schemes, funding poor nations for their social schemes, funding poor nations for their economic and academic growth, funding private projects like save a river, forest, sea from pollution or erosion. And while doing so earn handsome personal gain.
(danger from outside -the actual market)All those persons who are actually holding the account and their black money which is otherwise ancestral property, may misuse the money for:-
1) Importing low quality products, not necessary products, luxury products, fancy techknology, cosmetics and all sorts of luxury products and services2) Use the money for foreign tours and tourism, use the money for foreign real estate investment, use the money for
Any type of use of money in India by either government or by the actual money holder will ruin the entire indian economy. It will surely collapse the existing hard working indian structure and dooms day like situation may emerge.
One thing is for sure this money cannot be utilised until the indian government is purified, desciplined and corruption free and the money is cautiously used for every ordinary human be it poor or rich or backward or civilzed.
Since as on today entire government machinery is very much corrupt this is not the proper time to bring the entire funds inside india. Keep it outside till we develop into desciplined civilized society without corruption.
What will be method to utilize the money outside India?
Priority No. 1 Repay all debt
1) Repay all the international loans and money borrowed from any nation or nations or IMF or world bank or UN repay all outside india debt.
2) Refund all the money which is taken as loan by every state from the central government.
3) Refund all the money to the investors who had investmented in government scheme like national savings scheme.
4) Refund every sort of debt which is taken by the state and central government from either industry society or public at large.
5) Priority no.2 Repay every pending bills of all works done
Priority no.2 sustatinable economic development investment.
1) Ask all those persons holding black money outisde india, not bring the money inside india but invest it abroad only. Invest in sustainable economic development projects.
Priority no.3 Form a bank (Establish a bank outside india)
Using the huge amount outside india, india can establish a bank which will commercially fund industrial projects and scheme. Only commercial, financial, industrial profit oriented lending and no sympathy, social lending. This bank will not operate as any aid or social service agency but it will purely act as proft oriented bank.
What could be the option starting bringing the funds in india.
One must understand the ecological balance consept of mother nature and try to refund the nature what has been stolen from it. We and our many previous generations have stolen many trees from the mother nature and that has to refunded, returned to the mother nature. America is facing constant tornadoes and there is huge barren land not growing any try which are responsible for controling the speed flow of the wind. Soon india will face same kind of tornadoes as many jungles and trees have been cut down.
It is first and foremost priority to refund what has been stolen from mother nature. The trees. Plant many trees and conserve them. This is the first option of spending black money inside india. Tiny irrigation projects is the second necessary investment to stop soil erosion during monsoon.
Spend the money for :- Plantation of trees and conservation of those planted trees Funding tiny irrigation projects inside india (which will lead to water conservation and increase the ground water levels)
Many government officers have perfected the art of diverting public money into their private pocket. The above two project be implemented in such a manner that every single rupee invested in the above project is utilised for the project only and not for anybody’s profit. If for nine years or more it is found that the above two schemes have been successfully implemented without single instance of corruption then only bring the money in railway lines and road transport like infrastructural development projects. When again for next nine years it is found that infrastructural development projects have been implemented without corruption then, bring the amount in water supply, water conservation, electricity projects. After yet another nine years invest the remaining amount in all branches of government functioning.
Ask them (all black money holders) not to invest money in 1) Education or education sector, let the education sector grow independent of shadow of black money. Already many education institution have been secretly getting large amount of donations which are used in infrastructure and not in actual human resource development. Many pre-primary schools are charging more fees than any engineering or medical institutions, they don’t need any funding.
2) Any industry, as most of the current industries are the source of generation of black money, they will again generate black money only. All the industries have been the third biggest black money generating tool in india ecomony. By evading production, sales and all sorts of taxes, by not intimating the actual production, income from industrial outputs have been converted into black money.
3) Any infrastructural development as the same is resposibility of government and since the government had failed to perform many of its supervisory duty, inspection and control duties black money is gernerated. Many government contractor supply huge black money bribe to government official by over valuing the projects and add to their income. After agriculture, the government contractors are the biggest blakc money generating machines.
4) Any Real estate, since the poor have been already snatched from their possiblity of getting a home and if such black money comes in, every poor will go out, poor class would literary became slave of rich class for their accomodation, residence demand.
5) Agriculture – agriculture is the biggest sector from where the income of farmers have been regulary snatched away by the traders and stockists, it is the biggest sector where the black money is either generated or converted into white. All indian leaders holding crores of landed property evade tax by showing themselves and agriculturist or convert their black money as agriculture income on paper. Again bringing that black money as investment in that sector would disturb the economy only.
All and all, nothing in india except the environment, is requiring these funds. Any fund coming inside will certainly disturb the entire economy. All those persons who personally own the black money and hold the same shall be asked to declare the same and use it abroad only. During all such major steps to be taken, it is very much necessary to stop future black money generation by restructuring the taxing procedures, levying and penalty formats.
Our complicated tax structure brings challenge to evade the same.
Simplify the taxing structures Keep the same as nine percent of pure profit
Say in housing income from rented premises, after deducting every maintenace expenditure, what ever rent comes it would be nine percent of that rent.
No tax to agriculture income for the farmer upto 18 acres. When any one person holds more than 18 acres of lands in his single name, and his profit exceeds Rs.1,80,000/- Then 9 % for any amount beyond Rs.1,80,000/-. While calculating his profit, every seed, manuer, water charges, energy charges, labour charges, transportation charges are to be deducted.
For service tax :- Every individual employee have to directly pay the service tax to the government and the employee would not pay the same.
For Production Tax :- The Manuafacturer would be required to pay 9 % of service tax on the MRP of the product. He may sell the product at any rate to the dealer or supplier or stockist at a lower rate than M.R.P. but he has to pay 9 % of m.r.p of each product to the government as production tax. M.R.P. necessary for every product
For Sales Tax :- When a manufacturers gives a production tax on the M.R.P of the product he is not required to pay sales tax while selling that product. When the
Lastly:- Until a law is enacted to protect the law breakers who avoided taxes and generated black money outside india, no money holder would come forward to declare his money. Give them some incentive and protection of law to declare the money, then only law breakers would declare their funds.