Mode of financing Deficit – by ankit bhatia

Bonjour   !     Yet again     ..     unto perpetuity   !

Well   ..   scribble title   ..   consequent conjectures   ..   reverted to fiscal critiques ..  blah   ..   blah   ..   attributing economic sagacity or otherwise to predominant fiscal policies and economic ramifications ??

Hmm   ..   Is the deliberation attributable to erstwhile power centers or prevailing one  ??   Well   ..    Is the current period beyond critique or deliberation ??    **giggle**

Every fiscal sagacity or economy based scribble ought be pervaded with deliberations on fiscal prudence .. Isn’t it ??    **giggle**

Well   ..   kindly endure the offensive perusal of following: **giggle**

“..Excise duty on petrol and diesel has more than doubled since BJP-led NDA came to power in May last year, Parliament was informed today..”
via Excise duty on petrol, diesel more than doubles under NDA rule – The Economic Times.

“..Prime Minister Narendra Modi’s government faces a revenue shortfall of up to 500 billion rupees in direct tax receipts, estimated at 7.98 trillion rupees for the 2015/16 year to March.

Jaitley does expect to meet his target for indirect tax receipts of about 6.5 trillion rupees. That, say aides, is a sign that economic activity is picking up in Asia’s third-largest economy..”

http://in.reuters.com/article/2015/10/30/india-fiscal-deficit-idINKCN0SO1LL20151030

Hmm   ..   skeptical ??   ..   know what .. aforesaid deficit scenario is synonymous projection of deteriorating deficit scenario in the other coastal oil state of ‘dhokla’.   **giggle**    ..    well   ..   That’s factual   !!

Isn’t such deficit scenario or its mitigating endeavors – an obnoxious consequence or characteristic of inappropriate fiscal priorities, or at least, misplaced economic priorities ?? Glance, for instance, our fiscal statutory system! It has had enshrined formal enacted provisions – granting enormously mammoth fiscal concessions to even extremely affluent commercial projects like an absolute money machine – like – cricket world cup, to worsen even further, aforesaid fiscal concession statutory provisions even included in its ambit – the consideration by way of sponsorship fees received.

Hmm   ..   A deficit ridden, fiscally vulnerable jurisdiction ought grant such economically unproductive & redundant revenue leakages ??

And, grossly ironical, random concessions to affluent corporates – by acquiescence to mammoth abatement in corporate tax rates – sans any stipulations – regarding investments in backward areas etc !

Rather, the fiscal path being adopted is the misconceived mode via enhanced reliance on indirect tax collections, oblivious of massive fiscal leakage to affluent strata, corporates! Seems misconceived ! At least to me! Such misconceived policy would culminate into inflation, dented disposable incomes at consumer end, which would, consequently, impede economic growth! To worsen sagacity appeal of this policy, the fiscal leakages, as aforesaid, are out of governance purview, as soon as fiscal concessions are granted! And Indian economy has lost control over such fiscal resources – there & then! There is no government authority or government discretion over the fiscal resources foregone – attributable to aforesaid misplaced fiscal concessions – since, same maybe repatriated for investments in jurisdictions abroad or in projects abroad! For instance, outsourcing industry is witnessing a trend to offload investments in Indonesia etc sub parts of Asia – for investments ! So, consequently, haven’t we deliberately & voluntarily foregone those massive fiscal resources – in random disoriented mode – via aforesaid illustrative fiscal concessions – which were perhaps – granted with a vision – to let the same – culminate into an value added investment in the same fiscal jurisdiction – as granted the concession?? – so as to consequently culminate into jobs, enhanced economic activity ?? Shouldn’t the majority of deficit – be financed by direct fiscal burdening of affluent strata of the jurisdiction & other creative modes – rather than by discarding the whole process of subsidizing the BARE NECESSITIES to the vulnerable strata ?? (specially since, even by granting leakages to the other strata, there is no underlying assurance of the same resources being employed for the same jurisdiction’s development or growth??)

Well   ..   sans sarcasm   ..   I volunteer lpg subsidy relinquishment  !!   **giggle**

Adios   !!

 

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