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ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home
Presentation
Vision
Social Reality
Economic Reality
Current Reality Loops
Proposal
Effects of Proposal
Strategy
Social Security Scheme
Linked Proposals
Empowering Democracy
Animations
CreditEstablishment
Vision
Flawed TaxationSystem
EconomicRealitySocial Reality
Appeal
FDICredit
Expansion
Local Industry
Credit Cycle
Farmers Suicides
Internal Borrowings
Banking System
Disinvestment
High Denomination Currency
ProposedS stem
Statistics
CalculationsCurrency
Denomination
Bank MoneyDirect &
Indirect tax
Revenue afterBTT
Proposal
Anti-Social Industries
CommodityPrices
Appeal
Terrorism Analysis Strategy
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Vision
Vasudhaiv
Kutumbakam
One
Economy
Capital
Formation
Revenue for
Effective
Governance
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Economic Reality
Interest onExternal Debt
Cost ofrunning Government
National Security
Infrastructure, Agriculture,Needs of Common man
Complex
Taxation
system
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Effects of Fiscal Deficit on Local Industry
Fiscal Deficit
PoorInfrastructure
PoliciesInfluenced by
Foreign Interests
Attract FDI SubsidiesCurbed
UncompetitiveLocal Industry /
Trade
Unemployment
Local AgricultureRendered
Uncompetitive
Reduced RuralPurchasing
Power
SocialInsecurities
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Effects of Internal Borrowings on Fiscal Deficit
FiscalDeficit
InternalBorrowings
Spent on Non-Developmental
Activities
Inadequate TaxRevenue to Govt.
GDP Growth
Slows Down
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Effects of Fiscal Policy & External Borrowingson Credit Policy & Banking System
FiscalDeficit
ExternalBorrowings
National PoliciesInfluenced
Threat to LocalBanking System
ExpensiveCapital
Lending RatesIncrease
Bank InterestRates
Increase
Tax Rebate + HighInterest Rates on
Savings
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Effects of Fiscal Deficit on Anti-Social Industries
Fiscal
Deficit
Increased Congestion,Accidents, Pollution
SocialInsecurities
Inadvertent Promotion of
Anti-Social Industries
Promotion of
State Run LotterySchemes
Increase in oil
Import Losses(Subsidies)
Promoting Increaseduse of OilAutomobiles
Lack ofinfrastructure /public amenities
(e.g. public transportsystem)
Promotion ofLiquor, Gutkha,
Cigarettes
Direct IllEffects on
Public Health
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ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home
Effects on Taxation System & High Denomination Currency
FiscalDeficit
Inadequate TaxRevenue to Govt.
Tinkering ofTaxation System
UncompetitiveLocal Industry
/ Trade
ExpensiveCapital
Flawed TaxationSystem
Inflation
BlackMoney
ParallelEconomy
PoorGovernance
SocialInsecurities
Corruption
Non TraceableTransactions
Ease of CashTransactions
Large
DenominationNotes
Less Use
of BankingSystem
GDP GrowthSlows Down
InadequateCapital
Supply toEconomy
Poor Credit /
CapitalFormation
HighInput
Costs
TaxEvasion
Fiscal
Deficit
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Flawed Taxation System
Narrow Base and Limited Coverage of Direct Taxation
Direct to Indirect Tax Ratio is 44:56
Inequitable and hence Regressive
Non-Productive
Uncertain
Inelastic
Uneconomical
Complex nature of taxes
Tax laws open for interpretation
Show
Show
Show
Show
Show
Show
Show
Show
Statistics
How should it be Show
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Currency Denomination
CountryPer Capita
IncomeHighest
DenominationPer Capita Income /
Highest Denomination
USA
UK
Japan
India
$ 40,000
20,000
40,00,000
Rs. 46,000
$ 100
50
10,000
Rs. 1,000
400
400
400
46
Currency Denomination Distribution
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Credit
Establishment
Less Use ofBanking SystemObstructs Credit
Registration of a lotof Citizens in theNational Economy
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Cash Transactions will not attract any tax
ArthaKranti Proposal
Withdrawal of Existing Taxation System Completely*(except Customs/Import Duties)
*All Central, State and Local Government Taxes Direct and Indirect
Every Transaction routed through a bank will attract a certain deduction in appropriatepercentage as Bank Transaction Tax i.e. Single Point Tax Deducted at Source (say 2 %)
This deduction is to be effected on receiving/credit account only
This deducted amount will be credited to different Government Levels likeCentral, State and Local (as say 0.7 %, 0.6 % and 0.35 % respectively)
Transacting Bank will also have its share in this deducted amount (say 0.35 %)as the Bank has a key role to perform
Withdrawal of High Denomination Currency (say above Rs. 50)
Government should make legal provisions to restrict cash transactions up to a certainlimit (say Rs. 2,000)
This means, Cash Transactions above this limit will NOT enjoy any legal protection.
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Effects of ArthaKranti Proposal
Bank Transaction Tax
(Say 2%)
High DenominationCurrency is Removed(Say above Rs. 50)
Legal Provision MadeRestricting Cash Transactions
up to a Certain Limit(Say Rs. 2000)
Existing Cash
Deposited in Banks &Attracts BTT
High Value CashTransactionsNot Practical
Increase inBanking
Transactions
Tax RevenueIncreases by Orders
of Magnitude
AdequateRevenue to Govt.
AdequateRevenue toGovernment
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Effects of ArthaKranti Proposal
Tax Collectionis Simplified
Opportunitiesfor Corruption
Eliminated
Black MoneyEliminated
Anti-Social and Anti-National Elements
Effectively Checked
Fake CurrencyEliminated
Anti-Social and Anti-National Elements
Effectively Checked
AdequateRevenue toGovernment
Bank Transaction Tax
(Say 2%)
High DenominationCurrency is Removed(Say above Rs. 50)
Legal Provision MadeRestricting Cash Transactions
up to a Certain Limit(Say Rs. 2000)
Existing CashDeposited in Banks &
Attracts BTT
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Effects of ArthaKranti Proposal
Increase inBanking
Transactions
Part of BTTgoes to Banks
Net BankingRevenueIncreases
GloballyCompetitive
Interest Rates
Cheap and EasyCapital
PurchasingPower of Society
Increased
Market DemandBoosted
Industry Trade,Supply
Stimulated
Anti-Social and Anti-National Elements
Effectively Checked
AdequateRevenue toGovernment
IndustryTrade, Supply
Stimulated
Bank Transaction Tax
(Say 2%)
High DenominationCurrency is Removed
(Say above Rs. 50)
Legal Provision MadeRestricting Cash Transactions
up to a Certain Limit(Say Rs. 2000)
Existing CashDeposited in Banks &
Attracts BTT
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Effects of ArthaKranti Proposal
Commodities andServices are FREEDfrom Tax Influence
PricesDrop
Focus Shifted toInnovation fromTax Manipulation
Industry Trade,Supply
Stimulated
Cheap and EasyCapital
PurchasingPower of Society
Increases
Market DemandBoosted
Anti-social and anti-national elements
effectively checked
Anti-Social and Anti-National Elements
Effectively Checked
AdequateRevenue toGovernment
IndustryTrade, Supply
Stimulated
Show
Bank Transaction Tax
(Say 2%)
High DenominationCurrency is Removed
(Say above Rs. 50)
Legal Provision MadeRestricting Cash Transactions
up to a Certain Limit(Say Rs. 2000)
Existing CashDeposited in Banks &
Attracts BTT
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Effects of ArthaKranti Proposal
Black Money isConverted intoWhite
Tax RevenueIncreases by Ordersof Magnitude
SLRRevised
Money SupplyRegulated
Industry Trade,Supply
Stimulated
AdequateRevenue to
Govt.
Anti-Social and Anti-National Elements
Effectively Checked
AdequateRevenue toGovernment
IndustryTrade, Supply
Stimulated
Bank Transaction Tax
(Say 2%)
High DenominationCurrency is Removed
(Say above Rs. 50)
Legal Provision MadeRestricting Cash Transactions
up to a Certain Limit(Say Rs. 2000)
Existing CashDeposited in Banks &
Attracts BTT
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Effects of ArthaKranti Proposal
AdequateRevenue to Govt.
Industry Trade,Supply
Stimulated
Anti-Social and Anti-National Elements
Effectively Checked
FiscalDeficit
Recovered
Govt. DebtsChecked
Empowered
Government
Appropriatesubsidies
GloballyCompetent
Agro-Segment
SocialSecurityRestored
EmploymentOpportunities
BudgetaryProvision for
Political System
Cleansed
Political System
Black Money
Eliminated
Effective
Governance
Bank Transaction Tax
(Say 2%)
High DenominationCurrency is Removed
(Say above Rs. 50)
Legal Provision MadeRestricting Cash Transactions
up to a Certain Limit(Say Rs. 2000)
Existing CashDeposited in Banks &
Attracts BTT
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ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home
Revenue forBanking
Cheap and EasyCredit
Availability
DecentralizedRevenue
Collection System
Elimination ofBlack Money
Social SecurityScheme
Tax BurdenReduced with BTT
BudgetaryProvision for
Political System
Elimination ofMeans & Motives
for Corruption
AdequateRevenue to runGovt. Programs
EMPOWEREDINDIA
Creativity FREEDfrom Tax
Manipulation
BuildingIndividualsCredibility
Industry,Trade, Supply
Stimulated
Anti-Social and Anti-National Elements
Effectively Checked
IncreasedPurchasing
Power
Bank Transaction Tax
(Say 2%)
High DenominationCurrency is Removed
(Say above Rs. 50)
Legal Provision MadeRestricting Cash Transactions
up to a Certain Limit(Say Rs. 2000)
Existing CashDeposited in Banks &
Attracts BTT
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Jai Hind
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Back
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BackDistribution of Central GovernmentsDirect & Indirect Tax Revenues
0
100000
200000
300000
400000
500000
Direct Indirect
All f igures in Rupees Crores
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BackDistribution of State GovernmentsDirect & Indirect Tax Revenues
0
100000
200000
300000
400000
500000
Direct Indirect
All f igures in Rupees Crores
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BackDistribution of Central & State GovernmentsCombined Direct & Indirect Tax Revenues
0
100000
200000
300000
400000
500000
600000
700000
800000
Direct Indirect
All f igures in Rupees Crores
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BackDistribution of Centre & State GovernmentsCombined Direct & Indirect Tax Revenues for the Year 2010-2011
44%
56%
Direct
Indirect
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Back
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Back
Highest Three Denominations account for 95 % of the Total Currency Money
while 37 % of our Population is below Poverty Line with Poverty Line = Rs. 20/-
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Note: Absence of Denominations Larger Than $ 100 in U. S. and the fact thatconsiderable part of the U. S. Currency in $ 100 and $ 50 Bills is in use outside U. S.
it being an International Currency.
Comparison of Currency Denomination Distribution: Indian Rupee& U. S. Dollar
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Banks PrimaryDeposits
Cash Reserves Loans / DerivateDeposits
Credit Expansion through Banking System
A 20001 200 18002
B 1800 180 1620
C 1620 162 1458
D 1458 145 1313
E 1313 131 1182
Eventually 20,000 2000 18,0003
1 - Original Primary Deposit2 - Original Excess Reserves
3 - Total Capital Formation through Credit Expansion with Original Primary Deposit of Rs. 2000
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Product MFG Cost Taxes
Analysis of Commodity Prices
CementBag
90 ~ 160
Motor
bike21,000 21,000
Petrol 35 / liter 38 / liter
Back
All figures in rupees
Sales Price
~ 250
42,000
73 / liter
Chinese Cost
72
25,000
-
Diesel 25 / liter 20 / liter 45 / liter -
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Sample Calculations
Narrow Money (Transaction Money)(M1) = Currency Money + Demand Deposits
For year 2010-2011Currency Money = 9,50,000Demand Deposits = 7,18,000Narrow Money (M1) = 16,68,000
Assuming 20 % of M1 to be active in Daily Bank Transactions,
Amount of Money in Daily Bank Transactions (D1) = 3,33,600Amount of money in Yearly Bank Transactions (Y1)= D1*365 = 3,33,600*365 = 12,17,64,000
Consider Bank Transaction Tax as 2%(notional) with shares of CentralGovernment=0.7%, State Government=0.6%and Local Government=0.35%.
Combined Revenue for Centre (0.7%) and States (0.6%) = Y1 * 1.3/100= 12,17,64,000 * 0.013= ~15,83,000
Revenue of State Governments (0.6 %) = ~7,31,000Revenue of Local Governments (0.35 %) = ~4,27,000Revenue for Banks (0.35 %) = ~4,27,000
Al l f igures in Rup ees Crores
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Dependency on FDI
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Dependency on FDI
India
China
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Al l f igures inRupees Crores
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ArthaKrantiPratishthan
AdvertisingCampaign
PublicPresentation
Media Tools
The IndianCitizen
BusinessLeaders
Political Leaders& Parties
Experts
Members ofParliament
The ArthaKrantiDoctrine
The CitizensCharter of Demand
The ArthaKrantiNational Reform Bill
Implementation
Show ShowShow
Media
Show
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g p , p g
Implementation of ArthaKranti proposal. Its Effects areEnough revenues with government to make legal provision offunds for political systemHigh valued cash transactions difficultIncrease the use of the banking systemEffective taxation system leading to eradication of black money.
Provision for funding of the political systemFunding of the political parties based on a per person amount forthe entire population for a five year period. Say Rs. 100/personTotal population is to be considered while making this provisionThe actual fund availability will be in proportion to the actual
voting percentageThis funding will be available only to Registered political partiessecuring more than a certain minimum percentage of votes cast
Sample Calculation for funding political parties
Giving healthy monthly allowances to the elected representatives
The proposal for allowance of elected representatives
Empowering Democracy
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g p , p g
Empowering DemocracyCalculations
At the Central Level:Total provision for the entire population for the period of 5 years -
121 Cr. * 100 (per Person Amount) = Rs. 12,100 Cr.Provision per year Rs. 2,420 Cr.
The total Amount available in proportion to a total valid votes percentage -
Say 60%Amount available for 5 year period = 12,100 * 60/100 = 7,260 Cr.
At the State Level:State population say 10 CroresFunds provision for 5 year period = 10 Cr. * Rs. 100 = Rs. 1,000 Cr.
At the Local level:Population of the urban areas is say, 10 LakhFunds provision for 5 year period = 10 L * Rs. 100 = Rs. 10 Cr.
Actual funding will depend upon the total percentage of votes cast.
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Empowering DemocracyAllowance for Elected Representatives
For MPs at Rs 10 Lakh/month
For MLAs at Rs 5 Lakh/month
For Corporators at Rs. 1,00,000/month
For Village Development Officer at Rs. 10,000/month
The spending with these provisions will be- At the central level -- 785*10L*12 = Rs. 942 Cr. against a projectedrevenue of ~Rs. 7,46,651 Cr. = ~0.13 % of the revenue
- At the state level (e.g. Maharashtra) 366*5L*12 = ~Rs. 220 Cr. against a projected revenue of~Rs. 50,000 Cr. = 0.44 % of the revenue
- At the local corporation level (e.g. Aurangabad)100*1,00,000*12 = Rs. 12 Cr. against a revenue of ~Rs. 250 Cr.
= 4.8 % of the revenue
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Eradicationof Black
Money
Appropriateremuneration for
elected representatives
at all levels
Legal provision of fundsfor politics at all levels
Provision of fundingfor political parties
based on population
Effective funding availablefor political parties depends
upon voting percentage
Funding to politicalparties based on the
percentage of votes won
Decreased dependence oncorruption and criminals
Assuredclean
funding
Transparencyin politics
Dignity & publictrust restored
Politicsprofessionalized
as the qualified peoplewill take it up
Decreases ill-influence
of local partiesin national politics
Political parties
interestedin increasing voting
Politics focused on realissues
and national interests
Increasedstability of
government
Improvedfunctioning anddecision making
Increased lawand order
Improvedgovernance
Empoweringdemocracy
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A Social security identification (SSID) is issued to every Indian Citizen.
To begin with the beneficiaries of the Social Security Allowance Scheme will be alladult citizens of India beneath the poverty line.
For every deserving adult, a fixed amount (linked to DA), Social SecurityAllowance, is credited per month into a unique bank account linked to the SSID -
Say Rs. 2,000/ pm -- Based on Food (Rs. 900/-) + Shelter (Rs. 500/-) + Clothing(Rs. 300/-) + Health (Rs. 300/-)
Government will remove all non-merit subsidies thus freeing up revenue to paythe Social Security Allowance to the deserving citizens
All Social security allowance beneficiaries can get credit of Rs. 50,000/- (upperlimit) from banks
Restrictions to ensure correct usage - No rights to SSA beneficiaries on income for hereditary property- SSA amount cant be used as security against any other loan
Uniform implementation throughout the country
Social Security Proposal
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Social Security ProposalCalculations
In first phase, scheme will be implemented for people below poverty line.
Number of people below poverty line (monthly income below Rs. 300/-)is 30 Cr
Total monthly expenditure = Rs. 2,000 * 30 Cr = Rs. 60,000 Cr
Total yearly expenditure = Rs. 60,000 Cr * 12 = Rs. 7,20,000 Cr
Excluding current expenditure of Government over subsidies of -Rs. 1,50,000 Cr, additional yearly expenditure will be -
7,20,000 - 1,50,000 = Rs. 5,70,000 Cr
Considering current national income of Rs. 40,00,000 Cr, this additionalexpenditure would be ~15% of national income
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SSA beneficiaries willnot have right on
income from hereditary
property
Bank accountfor SSA
(associated
with SS Code)
SSA cant beused as
security for any
other loan
Unique SScode for
every
citizen
Maximum CreditLimit
For SSA beneficiaries
up to say, Rs. 50,000
Withdrawal ofNon-meritsubsidies
(Central and State)
Social Security Allowance
(Say Rs. 2,000 monthly)(linked to DA)(Food, clothing, shelter,
health insurance)
Saved Gov. RevenueExpenditure
Effectiveimplementationof child welfarelaws & schemes
Increase inPurchasing
power of thepoor people
Increaseduse of
Bankingsystem
Creditavailable
to the poor
Credit / Capitalexpansion
in the banking systemas a whole
Opportunities ofCorruption are
reduced (PDS, fueletc.)
Pricedistortionremoved
Assureddignified
existence forevery citizen
Hugely increaseddemand
for goods andservices
(Necessities)
Establishmentof Individual
credibilitywith bank
Increased Business/ Employmentopportunities
locally
Farmerssuicidechecked
Decreased SocialUnrest (reduced
Naxalism, terrorism,extremism, etc.)
BalancedDevelopment
(Rural andUrban)
Disseminationof Population
Socialsecurity
Market drivenquality supply
of goods &services
Improvedquality of life
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Jai Hind
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BackGovernment Officials
H.E. Smt. Pratibhatai Patil,Hon. President of India
(Personal meeting twice)
Dr. Montek Singh Ahluwalia,Deputy Chairman, Planning
Commission (Book)
Dr. Bhalchandra Mungekar,Member, Planning Commission
(Presentation)
Dr. Parthasarathy Shome,Ex-Chief Economic Advisor to
the Union Finance Minister
(Presentation North Block)
Dr. Adarsh Kishore Saxena-Ex-Union Finance Secretary (Presentation in the presence of Smt. Pratibhatai Patil)
Mr. Johny Joseph-Chief Secretary, Maharashtra (Presentation To CM, Maharashtra )
Mr. Agarwal -Finance and Planning Secretary, Maharashtra (Presentation To CM, Maharashtra )
Mr. Sangith Rao -Principal Secretary, Maharashtra (Presentation To CM, Maharashtra )
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i &Back
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Economists & Experts
Dr. D. R. Pendse Dr. Narendra Jadhav M N Chaini
Chandrahas Deshpande
Sunil Bhandare
Jairaj Salgaonkar
V. M. Govilkar
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P B SawantJusticeSupreme Court
R A Mashelkar
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P liti l L d CBack
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Political Leaders Congress
Manmohan Singh,
Hon. Prime Minister(Book)
P. Chidambaram
Union Finance Minister(Book)
Sushil Kumar Shinde,
Union Power Minister
Pawan Kumar Bansal,
Minister of State for
Finance (Presentation)
Prithviraj ChavanMOS, PMOs Office
(Meeting)
Vilasrao Deshmukh,
CM, Maharashtra(Presentation)
V George
P.A. to Smt Sonia Gandhi (Presentation)
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P liti l L d BJPBack
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Political Leaders BJP
LK Advani Bhairon Singh
Shekhawat
Yashwant Sinha Arun Shourie Sushma Swaraj
Balbir Punj SS Ahluwalia Rajeev
Chandrashekhar
Nitin GadkariGopinath Munde
Sompal Shastri Vinay
Sahasrabuddhe
Sudheendra
Kulkarni
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Political Leaders Shiv SenaBack
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Political Leaders Shiv Sena
Mohan Rawle Suresh Prabhu
Political leaders MNS
Raj Thackeray Rajan Shirodkar
Shweta Paralkar
Shishir Shinde
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Political Leaders NCPBack
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Political Leaders NCP
Sharad Pawar Jayant Patil
Political leaders CPI
D Raja
Dr. Kango
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IndustrialistsBack
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Industrialists
Deepak Ghaisas
I-Flex solutionsNarayan Murthy
Infosys
Arvind Padhye TCS Pune Center Head
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Media ExpertsBack
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Media Experts
Kumar KetkarLoksatta
Raju ParulekarE TV
Prem Shankar JhaHindustan Times
Rajeev KhandekarStar TV
Yamaji Malkar - Sakal
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Creative ArtistsBack
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Creative Artists
Vijay Tendulkar Mangesh Tendulkar Sachin Pilgaonkar Ashok Saraf
Nina Kulkarni
Nivedita Saraf
Mohan Joshi Kiran Shantaram Atul Parchure Prashant Damle
Swapnil Bandodkar
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Educational InstitutionsBack
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Educational Institutions
Goa Commerce College
Osmania university
NGOs
Loksatta
Maitri
i-Watch
Prayas (Reli group)
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Terrorism in India
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ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home
How we can tackle this problem?
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ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home
Terrorism Analysis
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Poverty
ReducedSocialSpending
Unemployment ReducedPurchasingPower
Flawed Taxation System
Tax Evasion
Under-utilizedBanking
System
InadequateMoney Supplyto Economy
IndividualsCredibility not
Established
High CommodityPrices due to Heavy
Indirect Taxes
Deprivation fromResources and Means
(Credit) to Acquire Them
No Accessto Credit
Lack ofEducation &Skills
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Terrorism Analysis
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Loss of faith in peaceful, democratic process,no hopes of getting justice without resortingto violence
Deprivation, Extreme
Disparity, Envy
PovertySocial Oppression
(Communal / Religious /Caste / Linguistic etc.)
Sense of Hurt, Damage to
Self Esteem, Indignation
Desperation Rebellious Tendency
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Physical constraints (Porous borders, Parallel economy, Corruption, Fake /
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Loss of faith in peaceful, democratic process, no hopes of getting justice without resortingto violence
ReligiousDogma
Terrorism
PerceivedHistorical injustice
Political / Economic /Philosophical ideology
Propaganda for masses,Indoctrination of
individuals
Birth of amilitant
Public sympathy, Weak
national Character
Lack of clear and firmForeign (therefore,
Defense) policy
y ( ,unregulated coastlines)
y, p , /high denomination currency
Logistic support, fundingand training etc from
hostile foreignorganizations / nations
Systemic Administrative
weaknesses in governanceand law enforcement
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ArthaKranti Proposal
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Withdrawal of High Denomination Currency (say above Rs. 50)
Withdrawal of existing Taxation System Completely (except Customs/Import Duties)
Every Transaction routed through a bank will attract a certain deduction in appropriatepercentage as Bank Transaction Tax i.e. Single Point Tax Deducted at Source (say 2 %)
This deduction is to be effected on receiving/credit account only
This deducted amount will be credited to different Government levels likeCentral, State and Local (as say 0.7 %, 0.6 % and 0.35 % respectively)
Transacting Bank will also have its share in this deducted amount (say 0.35 %)as the Bank has a key role to perform
Cash Transactions will not attract any tax
Government should make legal provisions to restrict cash transactions up to a certainlimit (say Rs. 2000)
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Effects of Proposal
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Poverty
Reducedsocial
spendingUnemployment Reducedpurchasing
power
Flawed taxation system
Tax evasion
Under-utilizedbanking
system
Inadequatemoney supplyto economy
Individualscredibility not
established
High commodityprices due to heavy
indirect taxes
Deprivation fromresources and means
(credit) to acquire them
No accessto credit
Lack ofeducation &skills
Adequaterevenue withGovernment
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Effects of Proposal
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Poverty
Unemployment Reducedpurchasingpower
Flawed taxation system
Tax evasion
Under-utilizedbanking
system
Inadequatemoney supplyto economy
Individualscredibility not
established
High commodityprices due to heavy
indirect taxes
Deprivation fromresources and means
(credit) to acquire them
No accessto credit
NoBlackMoney
Single pointtaxation system
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Effects of Proposal
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Poverty
UnemploymentReduced
purchasingpower
Under-utilizedbanking
system
Inadequatemoney supplyto economy
Individualscredibility not
established
Deprivation fromresources and means
(credit) to acquire them
No accessto credit
Bankingtransactions
increased
Individualscredibility
established
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Effects of Proposal
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Poverty
UnemploymentReduced
purchasingpower
Deprivation fromresources and means
(credit) to acquire them
Industry, trade,supply
stimulated
Purchasingpower
increased
Cheap & easycapital
Single pointtaxation system
Individualscredibility
established
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Effects of proposal
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Terrorism
Birth of amilitant
Public sympathy, Weaknational Character
Lack of clear and firmForeign (therefore,
Defense) policy
Physical constraints (Porous borders,
unregulated coastlines)
Parallel economy, Corruption, Fake /
high denomination currency
Logistic support, fundingand training etc from
hostile foreignorganizations / nations
Systemic Administrativeweaknesses in governance
and law enforcement
Adequaterevenue withGovernment
Individualscredibility
established
Single pointtaxationsystem
NoBlackMoney
Purchasingpower
increased
Poverty
Industry,trade, supply
stimulated
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Effects of Proposal
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Terrorism
Birth of amilitant
Public sympathy, Weaknational Character
Lack of clear and firmForeign (therefore,
Defense) policy
Physical constraints (Porous borders,
unregulated coastlines)
Parallel economy, Corruption, Fake /
high denomination currency
Logistic support, fundingand training etc from
hostile foreignorganizations / nations
Systemic Administrativeweaknesses in governance
and law enforcement
Adequaterevenue withGovernment
Individualscredibility
established
Single pointtaxationsystem
NoBlackMoney
Purchasingpower
increased
SocialSecurity
Industry,trade, supply
stimulated
EmpoweredGovernment
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