Open Letter to Chief Economic Advisor, Government of India
Open Letter to Chief
Economic Advisor, Government of India
Shri Subramanian, Krishnamurthy
Respected
Sir,
It
is a new challenge I am throwing at you and in fact to all Economists of world.
It is not in your job profile as a Chief Economic Advisor so I call it a new
challenge.
Only
the day before I was conversing with my Doctor and the pain I found in her
reflects the pain of every being – rich and poor, owner or an employee, even a
Govt officer, all alike. Her agony was that after putting in hard labor day to
night she gets some meager amount as performance incentive but GST is deducted
from that amount too and that is in addition to Income tax she pays and tax on
everything that she buys. You and I too are paying all kinds of taxes but being
accustomed of it and accepting it as a part of life we do not feel the pain.
But believe me as a human being even the richest person feels the pain when he
has to part with his hard earned money by way of taxes.
I
have been working on this concept for last several years (in fact from UPA2
days when huge scams were coming out every other day) and now I am convinced I
have a solution to it. My research says that our country owns numerous kinds of
Natural Resources and concrete and financial assets built since the start of
civilization and being built every day. The cumulative value of these assets
and resources is humongous but it remains unknown.
Central
and State Governments share among themselves various kinds of these Natural
Resources and Concrete and Financial assets BUT THE GOVERNMENT DOES NOT KNOW THE IMMENSE
VALUE OF THESE ASSETS WHICH IS IN TRILLIONS OF DOLLARS. (Imagine the value of
32.86 lakh sq km of land, or 7 lakh sq km forests, a renewable asset, or the
largest network of railways, or the largest network of highways and so on).
My conviction is that -
1. The
Governments should have been earning revenue by producing Goods and Services
from these Resources and Assets for welfare of their people directly or by
leasing them to private sector. But Governments have taken the easy course of
extracting Taxes from their hapless subjects as per the practice from ages. Government is earning a miniscule (10%) income
from the humongous amount of resources at its disposal, – 3 lakh crores in
2019-20 as per budget estimate, rest 90% comes from various kind of taxes and
borrowing.
2. I
have found a Methodology to evaluate all natural resources and concrete and
financial assets. This methodology shall
facilitate evaluation of all assets and resources of each and every village,
town, city and metro of the country (6.58 lakh Geographical Entities as per
2011 census), both in public and private domain. By consolidating value of these Entities we
can compute value of assets that every Ministry owns and controls. It shall
facilitate knowing Net Worth of the Nation by enlisting all Assets and Liabilities
of the nation in the form of a Balance Sheet. Balance Sheet is the basic guide for every
commercial enterprise but Governments do not make it or have not been able to
make it though several attempts have been made by many countries in the past.
3. Once
value of resources at the disposal of Ministries is known then the second
logical step would be to ask the Ministers and learned bureaucrats of each
Ministry and State to Redesign their work plan in a manner that
they start generating commensurate revenue from the resources at their disposal
just as in private sector. In case of need of new ideas, CEOs from private
sector can be appointed through competition between various aspirants and
appointing the ones who give most practical and most paying earning plan.
Fundamental difference between a CEO and a Government Minister is that while
the former is an EARNER the later is a SPENDER. The CEO is obliged to give
commensurate return to his employer from the resources provided to him. The
Minister has no obligation to earn; he simply gets money from budget to spend.
4. Once
the Ministries start earning from resources at their disposal pressure on
budget shall start reducing and a day shall come when their earnings shall be
optimized and they shall start contributing to the exchequer.
5. I
have started writing Open letters to our Ministers and putting them on my blogs
for public participation. I am pointing out to the Ministers the huge stock of
assets they possess and exhorting them to earn revenue from these assets to
meet their revenue expenses in the first instance - A transformation
from SPENDERS to EARNERS.
6. With
the increase in revenue from assets pressure on taxes and borrowing shall start
reducing. And a day shall come when there shall be no need of tax revenue and
borrowing. In fact country shall transform in to a Lender from being a
Borrower.
7. Result
a Tax free society – biggest gift to humanity.
Sir,
one pays happily for the goods and services one is buying but it is very
painful to part with your hard earned income in taxes. So the challenge before all Economists is to
relieve people from this pain of paying taxes. You know more than me the kinds
of natural resources and concrete and financial assets of enormous value are at
the disposal of various Ministries (I have tried to list them at my blog site mynotestopmofindia.blogspot.com). My submission is why Government cannot earn
optimum revenue from these resources and start reducing tax burden eliminating
them altogether one day.
I
have made it a Mission of my life to make it possible – Tax Free Regime. Can
you please lend me a helping hand in this Nobel cause? Just giving a thought
about this possibility shall also be a valuable contribution, sir.
M.K. Agarwal
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