Home / IndUS Forum Blog / A one point action plan for solving partially the issues of corruption and black money

Jan 30th

2014

By indusforum

Posted in IndUS Forum Blog
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Author: Krishan Khanna is an industrialist from Mumbai and a leading voice in the education conversation in India, having served on numerous national committees and task forces.

 

We need to consider a practical solution as a step of an “Agenda for Change” which will have a very useful and positive impact on the Indian Economy and for the people of India.

Any “Agenda” should be focused and acceptable to the masses, media, the Youth, the common man on the street, the Farmers, Political & Business and should NOT try to create another organization like a gigantic Lokpal; with powers greater than existing official or political structures. Such agendas like the Lokpal suggested by various Groups in the past will cause political Backlash and are not practical.

We suggest ONLY a “One point Agenda for solving partially Corruption & Black Money”.

 

1. CORRUPTION:

All expenses towards revenue and capital account at the village, municipal, district, state and centre MUST be hosted in the respective websites on a weekly basis in detail. Annual budgeted expenditure plans to be shown in detail and hosted in advance. All tendering details to be hosted too. Efforts for maximum transparency should be encouraged. Every type of information should be in the local language for easy communication and or English as acceptable to the local people and governments.

The CAG can easily make the formats? The Institute of Chartered Accountants and or the Institute of Company Secretaries can easily make a format and send to the CAG and or local State Governments. It has to be simple to read and elaborate as far as details and breakdown of expenses are concerned.

Why should a citizen file RTI for public and tax payer’s money being spent by local, state and central governments? All these moneys belong to the “People of India”.

2. BLACK MONEY:

Rs. 1000 & Rs. 500 notes should be withdrawn by the RBI. Nearly 82%** of all currency in value terms are in these two denominations. (RBI Annual Report March 2010)**. India has 1225 million people.

Pakistan, China and others are trying to pump in fake currency in these two denominations to destabilize India in many ways.

40% of Indians (about 490 million people) earn less than Rs. 81 per day ($1.25) and 70%(about 854 million people) earn less than Rs. 114 per day ($2). For them a Rs. 100 currency note is OK for running their lives, for business and trade.(World Bank). The balance 30% of the population, have bank accounts and or debit/credit cards. The Food Security Act also covers 840m.

In the US the maximum value of the currency note is US$100 whereas the average US citizen earns US$50,000 per year or about US$4000 per month. In India an average Indian earns Rs. 60,000 per year or about Rs. 5,000 per month.

In view of the above, a Rs. 100 currency note is good enough to run our country; if we want tax compliance and business and trade through banking channels. This will force better tax compliance.

It is very disturbing to note, that in India, a US$ 1853 billion economy, only 82,000 people declare an annual income of more than Rs. 10 Cr. Hardly 100 lac (10m or about 0.8% of the population) people declare an annual income of more than Rs. 10 lacs. India has about 700 lacs (70m or 6% of the population) tax assesses and about 350 lacs (35m or about 3% of the population) actually pay taxes!

You my friend, the Citizen of India, please be the JUDGE!

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