Next post on Monday, 29 January 2018.
Greetings for the 68th Republic Day of India
"If a fellow really
likes potatoes, he must be a pretty decent sort of fellow."
—A. A. Milne (Indian,
1863-1902)
Word for the day
Instauration (n)
Renewal; restoration;
renovation; repair
Malice towards none
Do you seriously think that
committing suicide by jumping into fire is a good idea?
First random thought this morning
Stuck in a traffic jam yesterday in Delhi, I did my favorite thing
again, i.e., bothering people with uncomfortable questions. Like every year, this
time also, I checked with people about what they feel about Republic Day.
But unlike past 10-12yrs, this year the reactions of people were
quite different. People were well prepared for this question. Their responses
were extremely guarded. No one wanted to be on the wrong side of the FRINGES.
Almost everyone answered with nationalistic fervor. Everyone implied that it is
just not a long weekend for them.
You speak to yourself, and decide how many of them might be lying,
and why this suppression of true feelings could be an ominous trend.
Nazrana, sweets and blankets
In the corridors of power, since independence the spring season
belongs to the Finance Minister. This is the time when the Union Finance
Ministry prepares and presents the union budget for the next following
financial year.
Till 2016, the budgets were presented closer to the festival of Holi,
which is sort of closing ceremony for the spring celebrations. But since last
year, the presentation of budget has been advanced to be closer to the festival
of Vasant Panchami, which marks the beginning of the spring festivities.
This is the time when everyone knocks at the doors of the Finance
Minister with his/her wish list.
Industry and businesses want tax concessions, better
infrastructure, easier (read lenient) compliance. Farmers wants more subsidies,
no tax and better infrastructure. Workers want tax concessions, more
allowances, better civic amenities (health, education, water, sanitation,
roads, electricity etc.). Homemakers want lower food and energy inflation.
Defence personnel wants higher salary and allowances and better weapons and
equipment. Scientists want better research facilities. Exporters want more
incentives, weaker INR and better logistic infrastructure. Importers want lower
tariffs, faster and easier custom clearances, stronger INR and better
logistics. So on and so forth. No one wants to pay higher taxes and adhere to
stricter compliance.
The fact however is that the finance minister of 2018 is
significantly less powerful and resourceful than the finance ministers of
yesteryears. He virtually has very little discretion in mobilization and
allocation of resources.
Most of the indirect taxes, forming about 50% of total tax revenue
are out of union finance ministry's purview and are now in jurisdiction of GST
Council or State Governments (in case of petroleum products, alcohol and real
estate etc.)
Post acceptance of the recommendations of 14th Finance Commission
in 2015, the formula for allocation of tax revenue between the central
government and states has changed materially in favor of the State Governments.
Consequently, implementation of most welfare schemes is now responsibility of
the State government.
Insofar as the Corporation tax is concerned, the finance minister
himself laid down the road map committing to reduction of tax rate to 25%, and
withdrawal of a number of exemptions. Not much deviation is expected there.
Thus the Finance Minister has very little to do insofar as
granting the wishes of various sections of the Society are concerned.
He is no more or less than the erstwhile feudal princes, who lost
their states and privy purse. The people, as a habit show them respect. In
lieu, they distribute sweets and blankets on special occasions.
Expect no more from him on next Thursday....more on this next week
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