No nation can survive long if it has not undertaken financial reforms from time to time. There must be a financial ecosystem in which every citizen contributes to the national pool and social security, and facilities are provided to all. Here is a proposed financial module for nationwide implementation:

 

 

All the citizens must be enrolled in NPR, dividing them into eleven categories as follows:

Category I 

People below the poverty line should be kept in this category whose annual income is up to 2 lacs.

Category II

Citizens living above the poverty line and with an annual income of up to 5 lacs may be included in this category.

Category III

Citizens with an annual income of Rs 5 lakh to Rs 10 lakh may be kept in this category.

Category IV

Citizens with an annual income of Rs 10 lakh to Rs 20 lakh may be kept under this category.

Category V

Citizens with an annual income of Rs 20 lac to Rs 50 lac may be kept under this category.

Category VI

Citizens with an annual income between Rs50lac and 1cr may be kept under this category.

Category VII

Citizens with an annual income of 1 cr to 5 cr may be included in this category.

Category VIII

All citizens with an annual income between Rs 5 cr and Rs 100 cr may be included in this category.

Category IX

All citizens earning more than Rs100cr may be kept under this category.

Category X

All chief ministers, central ministers, chief secretaries, all defence chiefs, all chief justices, Supreme Court judges, and other equal-ranking cadres of citizens may be kept under this category.

Category XI

The President of India, the Prime Minister, the Vice President, the Chief Justice, and the Field Marshal may be kept under this supreme category.

Now, all facilities, responsibilities, and other financial and protocol matters must be decided according to the categorisation.

  1. All citizens must contribute a minimum of 1% of their gross income to the national relief fund, apart from any taxes.
  2. The maximum cash in hand limit must be fixed according to categories, but not more than 5lacs at a time.
  • High-denomination notes must be taken out of the approved currency, but before doing so, sufficient currency must be available for replacement.
  • Firms and individuals who collect cash in excess of their cash limits must deposit the excess into their bank account within 48 hours, or the next working day on bank holidays.
  • All single expenses or sales above Rs 10,000/- must be made online or by cheque.
  • Firms, organisations, and political parties must also be fixed with cash holding limits, not more than Rs 10 lacs at a time.
  • Worship places should deposit their collection in a bank

account within 48 hours.

  • The tax regime must be determined by categories.

9 All foreign aid must be taxed at a flat rate before being distributed.

  • Every citizen from category III and above must take a permanent account number convertible to a higher category based on annual income every year.
  • Citizens of category I and II must be promoted to the next category within five years by planning suitable government schemes and monitoring them individually by the development/ panchayat departments.
  • profit margins must be fixed for all industries, traders, shopkeepers and producers.
  • Salaries and professional fees must be limited to the categories specified and should not exceed the emoluments for category XI.

 

 

It’s a well-established fact that debt either enables an individual or organisation to grow and repay the loan, including interest, or it ruins the individual’s entire livelihood. Debt, if used for productive assets, presents no stress, but if used for luxuries or even daily needs, it grows day by day and can never be repaid. Ultimately, the debtor loses all his or her wealth, and even the bank becomes corrupt. The history of many countries bears witness to this. These countries repeatedly took out loans by mortgaging their assets and used the loan proceeds for their own luxuries or free distribution to their citizens. They suffered two losses. First, their citizens grew lazy and stopped working hard to meet their needs. They became squatters, seeking free food and freedom. Second, their debts continued to grow because they did not generate income from the debt. Ultimately, they lost their shipyards, vital assets, and even their decision-making independence. Pakistan, Sri Lanka, Bangladesh, and many other countries are examples of banks teetering on the brink of corruption. Their law and order is constantly at stake.

Are we also following the same path? The answer lies in the rising state debt. Let’s pretend for a moment that everything is fine. If so, we need to see if any state government is willing to pay down its fair share of debt or reduce it. Do they have a planner to reduce it to zero within any timeframe? The answer is no. Then, there are only two options for continuing their course. First, they increase the burden on their taxpayers by raising taxes, or they risk losing their own development.

Who will bear the cost of increasing unnecessary state expenditure? Is it fair for political leaders to tax honest citizens for luxuries and political free-for-alls to maintain and continue their rule? Negotiations are the very reason we are on the path to losing our economy.

You see this in rural areas today. The days and hours of labour are being drastically reduced simply because of free subsidies and food. Farmers receive loans but don’t respond because they believe they will be wiped out in the next election. Bank NPAs are rising. Financial fraud is also rampant. Where does this situation end, and how can we even think about becoming self-reliant?

This issue has disturbed the peace of mind of many economists, taxpayers, and planners. It has become a topic of discussion among citizens’ groups, and various political leaders have begun arguing in favor of their policies. The Supreme Court has also expressed concern about whether all political parties are distributing free beans solely to maintain and attract their vote bank. A common opinion, especially among educated citizens, is definitely against every government’s policy of free schemes. We believe that:

This issue has disturbed the peace of mind of many economists, taxpayers, and planners. It has become a topic of discussion among citizens’ groups, with various political leaders arguing in favour of their policies. The Supreme Court has also expressed concern about whether all political parties are distributing freebies solely to maintain and attract their vote bank. A consensus, especially among educated citizens, is clearly against any government policy of freebies. We believe that:

  1. It should be mandatory for every state government to plan its budget in a manner that is free of all kinds of deficiencies.
  2. The overall tax burden should be limited on a national basis.
  3. Development projects should be approved within the state’s income sources.
  4. Loans for special development projects should be sent to the central government for approval.
  5. A high-level coordinator should be formed to assess the project’s viability and loan repayment.
  6. Political parties and governments should be prohibited from announcing any freebies, loan waivers, or cash subsidies.
  7. Subsidies may be granted to promote the expansion of industries, production, exports, health, and education facilities based on specific needs.
  8. Under no circumstances should grants or subsidies be allowed based on cast  or religion, and general financial rules should be applied to all places of worship, regardless of race.
  1. A comprehensive upliftment program for the weaker sections should be implemented, lasting no more than five years, and the implementing and monitoring agency should be unified and accountable. Subsidies in the form of commercial property may be allowed for these projects.
  2. All exemptions should be based on income, not caste.
  3. A strict regulatory system should be implemented to curb corruption, from political leaders, bureaucrats, and business mafias to the lowest levels.
  4. Loopholes in the law that allow criminals to persist should be eliminated, and timely justice should be ensured.

13 Political contributions to political parties should be limited, and an overall limit should be set on the total amount.