Thursday 30 May 2019

There is no dearth of talent in BJP, which is evident from our election and governance management


I don’t agree with the talent deficit claim in the ministry. After five years in power, we are much better placed with more experienced individuals in our party. With more than 300 members of Parliament in Lok Sabha and with 50 from our NDA partners, there is ample talent across the spectrum from different segments of society and geography.
For the purpose of governance, it is important to be connected to the people — Parliament is a platform where people’s wishes have to be accommodated. Government policies have to be reflective of common people’s aspirations. Our team includes individuals with immense experience in political life and the combination of experience with new talent can deliver on the aspirations. Prime Minister Narendra Modi and BJP president Amit Shah are present to guide them.
BJP’s ticket distribution is very scientific and organised. This time, the party had ample space to choose the talent and keep government positions in mind. Winnability was not the only sole criterion.
Young blood, diverse experience and talent were all kept in mind at the time of ticket distribution. PM Modi is very meticulous in selecting his team, as he knows delivering on promises is equally important. He and Amit Shah are doing elaborate exercise to form a comprehensive cabinet.
We are certain that the PM will bring fresh talent and balance it with experienced leaders. There is no dearth of talent in our party and that is quite evident from our election and governance management.

Monday 27 May 2019

Economic Agenda for New India


In 2014 when Mr. Modi came to power there were several challenges; India has a large no of population below poverty line, elimination of poverty in absolute terms is an important issue. The second was; large scale leakages in the delivery mechanism of government’s social security schemes. There were gaps in the tax compliances. Macroeconomic parameters like inflation, fiscal deficit, GDP growth rate were in unhealthy terrain. Concentration of wealth is a big concern. In the last five years, Mr. Modi has been successful in addressing some of these issues; others are part of our unfinished agenda.
India’s aspirationalmiddle class is rising again, looking for opportunities and ease of living. This middle-income group willbe driving consumption demand and set up businesses.We proudly remember that in the past 2000 years, India and China together occupied almost 60% of the global trade. If the government successfully removescertain capacity constraints like credit availability, high interest rates, land acquisition, tax complexities, connectivity and logistic support etc. they can all propel economic growth. The government has planed massive infrastructure investment over the next five years on roads, railways, airports, housing etc.
Employment growth is very important for the economy. Our emphasis has been on entrepreneurship and self-employment, focusing on the manufacturing sector particularly MSME, what we have termed as the missing link. We are working on achieving 50th rank on Ease Of Doing Business (EODB). We have investment driven roadmap to five and ten trillion-dollar economy by the year 2024 and 2032 respectively.Presently majority of macroeconomic parameters like low inflation, high GDP growthfiscal deficit at 3.5% are under control, tax to GDP ratio at 12% are all on strong foundation,still there are some challenges that we have to work upon.

Various chambers of commerce are worried about the high Real Interest Rates. Cost of deposits is an important cost component of our banking system. Fixed interest rate saving schemes determine the deposit rates. Central and State Government’s borrowingshave a bearing on the deposit rates. Government is maintaining its fiscal deficit targets; but with rising GDP there will be space for borrowing without disturbing fiscal deficit.RBI governor also said that there is a limit to which lowering of repo rate can be transmitted to lower real interest rate. We need some structural changes to achieve low real interest rates.
The second important cost component for the banks is the risk premium determined by the level of NPA and stressed assets. Reforms like IBC, NCLT and other legal changes have set upinstitutional mechanism to resolve the NPA problem. Of the 11 banks under the Preventive Corrective Action (PCA), five are out. The government is infusing capital and merging some of the weak banks. Initial slowdown in the credit off take has now recovered, last year credit growth was around 14 -15 percentyear on year.

We are seeing some good results with a time lag and will further accelerate. The government is also working on project revival under the ‘Pragati’ initiative. It is trying to sort out certain complex problems faced by some NBFC and infrastructure companies like ILFS.

Earlier Financial sector legislative reform commission (FSLRC) has recommended certain reforms in the financial sector. Most of them have been implemented. Financial resolution and deposit insurance (FRDI) has to be implemented. We also need Development Financial Institutions (DFI) to finance long-term gestation projects. We will certainly do that.
Indians will have to rise to concept of Tax Payer’s money and its sanctity. Every penny that the government is spending is a taxpayer’s money. These are governance issues involved with the exchequer. 
Government is one of the biggest borrowers. Givingout doles, with this money will be an inflationary pressure andfiscal deficit will rise. The efficiency and transparency in the government expenditure is very important. If the government borrowing is used for asset creation, it expands the economy. When we say that in the next 5 or 10 years, we will go for 100 lakh crores of investment into infrastructure, it is sustainable and will help economy.
Better targeting through Jan Dhan account, direct benefit transfer (DBT) is an important goal for us. ‘Benefit to the last person’ is our ideology from the early Jan Sanghdays. With all the pressure for farm loan waiver, Central government has abstained from loan waiver. The good economics as good politics.
Big-ticket reforms in the factor market mobility; like land, labour and capital is very important for the industrialization of the country. Government could not amend the Land Acquisition Act. Land being a state subject States are making changes.The Centre is pushing for digitisation of land records and land lease agreement; it will help in establishing ownership of land. Even for ease of doing business (EODB) ranking, transfer of title is an important consideration.
On the labour front there has been efforts on the formalisation of labour. 93% of our labour force is in informal sector. The working conditions in this sector are very poor. Provident Fund (PF), ESI, job security, social security etc. are not available. Government has plans for consolidatedLabour Code and promote fixed term contracts.

Food grain production in the country has moved from shortages to surplus. But the Agricultural policies are still being formulated with a deficit mind set. We will drastically change this. Earlier all our commodity import export policy was aligned with the requirement of consumers. Our import export policies are being aligned to ensure that the farmers get better price for his produce. Currently low inflation with high growth rate is ideal but not at the cost of lower price realization to thefarmers. A big challenge is doubling of farmers by 2022.

Saturday 25 May 2019

Good Economics is Good Politics


Q1. The country is facing a challenging economic situation: a slowdown threatens, unemployment is at historic highs and manufacturing is at a standstill. How does the BJP propose to deal with the situation if it comes to power? What should be its top priority?
Answer 1. It is wrong to say that the country is facing a challenging economic situation. If you look at  themacro economic parameters they all are in a very good shape. Inflation is under control at around 4.5%. GDP growth is on a higher growth path, and is about 7.5 %. Fiscal deficit at 3.5% is under control. Current account deficit is also healthy. Tax to GDP ratio has increased to 12%. All this will allow the government to take necessary steps wherever required.
We understand that, if the economy has to grow on this strong foundation, we have to address many issues.We also have many opportunities arising from growing aspirational middle class. This middle class is having large money at its disposal for consumption and investments. Oneimportant consideration is our focus to reduce poverty to a single digit. The aspirational middle class and reduction in poverty will drive consumption demand in the economy. The top priority for the government would be to revive private corporate investment, which has been low for some years now. Once these engines work well, things like manufacturing growth and employment generation would be taken care of. Our focus will be on the manufacturing sector particularly MSME, which we have termed as the missing link. The government would be committed to take all the necessary supportive steps.

Q 2. The Goods and Services Tax (GST) has left enormous destruction in its wake. While it has formalised the economy, it has also increased the expenses of small businesses, and increased the potential of corruption. There is nothing a small trader fears more than the word 'mismatch'. The Congress in its manifesto has promised a much more simplified version of the GST. How do you propose to do this? 
Answer 2. Conceptually, no one has a problem with the GST. It does away with the multiplicity of tax structures, subsuming central, state and local taxes, it results in a reduction of indirect taxes for the consumer, it creates ease of doing business by online registration, filling of returns and assesment and creating one tax one market. For the consumer, it would reduce prices of manufactured goods, for the Government it would mean increased tax collection and fiscal consolidation and creation of a much simpler system to administer through GSTN network.
Small Businesses with aggregate annual turnover up to Rs 40 lakhs are exempt from GST. And those having annual turnover up to Rs 1.5 crore can avail the benefit of composite scheme by paying 1 percent tax and get rid of GST formalities.
Fear of mismatch is an initial hiccup, but is necessary to clean the indirect tax structure. It penalizes those who collect taxes but do not deposit it to the exchequer. Without the complete audit trail the gaps in the tax collection can’t be filled. To overcome initial problems of mismatch, government has been lenient and has allowed input tax credit on provisional basis. But ultimately black sheep in the system have to be weeded out.
India with such diverse income groups can’t have a single rate GST. We plan to integrate 12 and 18% GST slabs into a single 16 % rate with majority of items falling in this category. Only 6 item termed as sin goods remain in the higher 28 % slab. Essential commodities mostly food items are under 5 % tax slab.
With 30 GST council meetings, most of the demands for simplification have been accepted, like reverse charge. Anti profiteering provision has a sunset clause. And still if more modifications are required, government is open to those suggestions.

Q3. You have in the past expressed clear views about the role of the Reserve Bank in helping kick-start the economy. What should the RBI do now?
Answer 3. There are two issues with the way Reserve Bank of India has conducted its monetary policy and banking regulation. First is that the monetary policy committee (MPC) has always overestimated the future inflation in the economy as a result of which RBI has kept the benchmark interest rate at an elevated level. This was clearly not warranted by the level of economic activity in the economy. Second whenever the RBI cut the repo rate, it was not fully transmitted by the banking sector. As a result of these two factors the investors in India face one of the highest real interest rates in the world. Though we see an improvement in these areas in recent times, I would want RBI to continue working on these two issues. If they are taken care of, other pieces of the financial sector puzzle will fall in place and the real economy will benefit. The government and the RBI are working to resolve the issues at IL&FS and some NBFC.
The banks underwent cleansing via prompt corrective action or PCA. 6 banks are still under PCA they have to be corrected through Bank mergers or infusion of capital. We don’t need 27 public sector banks.

Q4. What are the direct tax reforms on the anvil?
Answer 4. The new government will present its first budget in July 2019. We are waiting for the report of the task force on direct tax simplification. Corporate tax has to be brought down in line with withdrawal of exemptions and incentives. Even basic income tax exemption limit has to be increased from Rs 3 lakh to Rs 5 lakh. We have promised to ensure reduced tax rates.
Earlier government had launched email-based assessment. This facility was included in e-filling portal. Later CBDT directed all cases barring certain exemptions to go for E-assessment.We would follow it up. E-assessment will help in removing widespread corruption in direct tax structure. It will smoothen the process and remove subjectivity. Income tax notices etc. will be generated through central database. The focus of all the steps would be to lower the effective tax rate for the payer and have a better compliance so that there is net increase in the tax revenue.

Q5. Should we expect another round of populist spending? 
Answer 5. Your question presupposes a previous round of populist spending, which is not true. In the current term as well, there would not be any populist spending. Indians will have to understand the concept of Tax Payer’s money and its sanctity. These are governance issues involved with the exchequer. 
Government is the biggest borrowers. Giving out doles, with this money will be inflationary and fiscal deficit will rise.  If the government borrowing is used for asset creation, it expands the economy. When we say that in the next 5 or 10 years, we will go for 100 lakh crores of investment into infrastructure, it is sustainable and will help economy.
In fact, our focus has been on increasing the efficiency of government expenditure. For example better targeting through Jan Dhan account and direct benefit transfer (DBT)We did not announce farm loan waiver in our manifesto and still won with such a huge majority. We believe that good economics is good politics.

Q6. What should be the new government's immediate big idea on economic management?
Answer 6. Financial resolution and deposit insurance (FRDI) has to be implemented. We also need Development Financial Institutions (DFI) to finance long-term gestation projects. We will certainly do that.
Big-ticket reforms in the factor market mobility; like land, labour and capital is very important for the industrialization of the country and would step in that direction. The Centre is pushing for digitisation of land records and land lease agreement; it is helping in establishing ownership of land. On the labour front there has been efforts on the formalisation of labour. 93% of our labour force is in informal sector. The working conditions in this sector are very poor. Provident Fund (PF), ESI, job security, social security etc. are not available. Government has plans for consolidated Labour Code and promote fixed term contracts.
There is stress in the agricultural sector. Food grain production in the country has moved from shortages to surplus. But the Agricultural policies are still being formulated with a deficit mind set. We will drastically change this. Earlier all our commodity import export policy was aligned with the requirement of consumers. Our import export policies are being aligned to ensure that the farmers get better price for his produce.

Monday 20 May 2019

टाइम मैगजीन का दुष्प्रचार - भारत की प्रजातंत्र का अपमान


अमेरिका की प्रतिष्ठित टाइम मैगजीन में आतिश तासीर ने पीएम मोदी पर एक लेख लिखा। जिसमें लेखक तासीर की तरफ से सवाल हुआ है कि, क्या विश्व का सबसे बड़ा लोकतंत्र फिर से मोदी को पांच साल का मौका देने को तैयार हैं?

आतीश तासीर नें मोदी जी को डिवाइडर इन चीफ बताया और मोदी जी की जम कर आलोचना कि हालांकि उन्होने यह भी स्वीकारा है कि 2019 के इलेक्न में मोदी जी की जीत तय है। तासीर ने मोदी जी को विभाजित सोच का बताते हुए कई बातों को रखा है पर क्या वो बातें सही है।

नरेंद्र मोदी की (अपेक्षित) जीत को वे "भारत के लिए विपत्ति" के रूप में वर्णित करते है। अगर वह वास्तव में भारतीयों द्वारा लोकतांत्रिक, स्वतंत्र और निष्पक्ष जनादेश का सम्मान करते हैं, तो उनका यह विचार प्रजातांत्रिक मुल्यो के खिलाफ है और भारतीय जनमानस की सोच पर प्रश्न चिन्ह खड़ा करने का प्रयास करता है।     

अगर तासीर के इस लेख का अवलोकन किया जाए तो इस लेख में इस बात का जिक्र है कि पिछले 5 सालों में मोदी अपनी नाकामी छुपाने के लिए राष्ट्रवाद का सहारा लिया है। लेकिन अगर पिछले पांच वर्षों में मोदी जी का कार्यकाल देखेगें तो देश में सर्वांगीण विकास के कई महत्वपूर्ण कार्य हुए है। आज हमारी अर्थव्यवस्था विश्व में सबसे तेज गती से आगे बढ रही है। आधारभूत ढांचा जैसे सड़क, रेल, हवाई जहाज के क्षेत्र में विशेष प्रगति हुई है। गरीब कल्याण और उत्थान बहुत तेजी से हुआ है। भारत में आज मिडल क्लास का उद्भव हो रहा है जो नई सोच एवं आत्मविश्वास के साथ आगे प्रगति पर है। विश्व पटल पर भारत की साख बहुत मजबूत हुई है।

लेखक ने इन प्रगति को नजरअंदाज करके 1947 का जिक्र किया है। वे कहते है कि भेद भाव की भावना तत्कालीन प्रधानमंत्री जवाहर लाल नेहरू ने शुरु की थी। देश का विभाजन हिन्दु और मुसलमान के तर्ज पर हुआ था। पाकिस्तान ने अपने को मुस्लिम राष्ट्र घोषित किया लेकिन भारत धर्मनिरपेक्ष रहा। नेहरु जी द्वारा फिर, भारत में मुसलमानों और हिन्दुओ को दो अलग – अलग कानून अपनाने को क्यों कहा गया। मुसलमानो के शरिया को समान नागरिक संहिता के उपर रखा गया और हिन्दुओं के कानून में कई बदलाव किये गए।

उनका कहना है मोदी जी के कार्यकाल में हिंदू-मुस्लिम के बीच दूरियां बढ़ी, जबकी मोदी जी ने हिन्दु मुसलमानो में कभी भेद भाव पैदा करने की कोशिश नही की है मोदी जी ने सबका साथ सबका विकाससे सबको समान रुप से फायदा पहुंचाने का प्रयास किया है।

तासिर ने तीन तलाक को खत्म करने का जिक्र किया है। एक तरफ आप यह कहते है। महिलाओ के लिए सुरक्षा नहीं है। तो फिर यह बताईए क्या तीन तलाक को खत्म करना मुसलिम महिलाओं का विकास का हिस्सा नहीं है। मुसलिम महिलाओं को उनका हक मिलना चाहिए या नहीं है।

वह इस तथ्य की अनदेखी करते हैं कि नेहरूवादी धर्मनिरपेक्षता के समर्थकों ने शाह बानो के पक्ष में सर्वोच्च न्यायालय के फैसले को निष्प्रभावी कर दिया और डॉ. मनमोहन सिंह ने कहा था कि अल्पसंख्यकों का देश के संसाधनों पर पहला अधिकार है।

धार्मिक संघर्षों पर भी, उन्होंने इस तथ्य को नजरअंदाज कर दिया कि पिछले पांच वर्षों में भारत में कोई बड़ी घटना नहीं हुई थी। महिलाओं के मुद्दों पर, वह महिला सशक्तीकरण के लिए विभिन्न सरकारी पहलों, जैसे बढ़े हुए प्रसूति मातृत्व अवकाश, छात्राओं के लिए अलग शौचालय, रसोई गैस कनेक्शन आदि सरकार की पहल की अनदेखी की हैं। उज्जवला योजना से गाँव धुएँ मुक्त की तरफ़ बढ़ रहे हैं, कच्चे मकानों में रहने वालों को पक्के मकान दिए जा रहे हैं, ये सब योजनाएँ बिना किसी जातिगत भेदभाव और बिना किसी धार्मिक भेदभाव के लागू की जा रही हैं और इन योजनाओं की ख़ासियत है कि जो सुपात्र हैं वो इन योजनाओं के लाभार्थी हैं। भारत जैसे विशाल देश में किसी योजना को उसके सच्चे हितग्राही तक पहुँचा देना ख़ुद में एक कामयाबी है|

मैं प्रश्न पूछता हूँ कि देशहित और राष्ट्रवाद में फरक क्या है। क्या देश हित की भावना जगाना गलत है। क्या देश के नागरिकों में यह भावना नहीं होनी चाहिए की देश सर्व प्रथम है।

मोदी जी ने आतंकवाद पर लगाम लगाई है। पुलवामा के बाद दिखा दिया कि पाकिस्तान कि हजार घाव वाली थ्योरी को नहीं सहेगें। हमारी सेना पाकिस्तान को उसके घर में घुस कर मारेंगी।

मोदी जी ने स्वतंत्र देश का हर फैसला कैसे होता है इसको पुरी दुनिया के सामने रखा है।

और तासीर जी बताए क्या पहले की अपेक्षा भारत में विकास कम हुआ है। आप कांग्रेस के विकास को कतार में लाइए जिसने 70 साल देश पर राज किया और फिर मोदी सरकार के विकास को कतार में लाइए आपको फरक साफ दिखाई देगा। आपने भारत को समझने के लिए सलेक्टिव अप्रोच का चयन किया है आप अपने लेख में निष्पक्ष पत्रकार कम नज़र आते हैं आपके विश्लेषण पर आपके पूर्वाग्रह भारी पड़ते दिखाई दे रहे हैं।

Wednesday 15 May 2019

महागठबंधन का ढोंग और मोदीवाद के विरोध का हौआ


नरेंद्र मोदी से बेइंतेहा नफरत के कारण साथ आए और अपने राजनैतिक अस्तित्व के लिए लड़ने को मजबूर विभिन्न विपक्षी दल, बिना किसी साझा नीति या विचारधारा के, खुद को 'महागठबंधन' का नाम देकर राष्ट्रीय जनतांत्रिक गठबंधन (एनडीए) के खिलाफ एकजुट होने की कोशिश कर रहे हैं। कांग्रेस पार्टी को इस महागठबंधन का केंद्र माना जा रहा है लेकिन दूसरे राजनैतिक दल उसके नेतृत्व को स्वीकार करने से इनकार कर रहे हैं। राज्य स्तर पर महत्वपूर्ण उपस्थिति रखने वाली सारी पार्टियां भी महागठबंधन में शामिल नहीं हुई हैं। इससे स्पष्ट है कि एनडीए के खिलाफ संयुक्त रूप से एक विपक्षी उम्मीदवार खड़ा करना जितना मुश्किल हो रहा है उतना पहले कभी नहीं हुआ।

अगर हम मतदाताओं के मामले में सबसे बड़े राज्यों से शुरू करें; उत्तर प्रदेश जहां समाजवादी पार्टी (सपा), बहुजन समाज पार्टी (बसपा) और राष्ट्रीय लोकदल (रालोद) ने लोकसभा चुनाव लड़ने के लिए गठबंधन किया है लेकिन इसमें कांग्रेस नहीं है। पश्चिम बंगाल में कुछ शुरुआती बातचीत के बावजूद ममता बनर्जी और कांग्रेस के बीच गठबंधन की संभावना नहीं है और कांग्रेस और तृणमूल कांग्रेस के नेताओं के बीच वाकयुद्ध जारी है। दिल्ली में माना जा रहा है कि आम आदमी पार्टी (आप) कांग्रेस के नेतृत्व को स्वीकार नहीं करेगी, इसलिए उनके बीच भी किसी प्रकार के गठबंधन की संभावना नहीं है। केरल में कांग्रेस के नेतृत्व वाला यूनाइटेड डेमोक्रेटिक फ्रंट (यूडीएफ) लेफ्ट डेमोक्रेटिक अलाइंस के खिलाफ खड़ा है और राहुल गांधी के वायनाड से चुनाव लड़ने की घोषणा के बाद तो लेफ्ट और कांग्रेस के बीच लड़ाई और भी तेज़ हो गई है और एक-दूसरे पर आरोप-प्रत्यारोप का दौर चल रहा है। ओडिशा, आंध्र प्रदेश और तेलंगाना में भी यही हाल है। कांग्रेस असम में बदरुद्दीन अज़मल के संगठन के साथ भी गठबंधन करने में विफल रही है। इन सभी राज्यों में त्रिकोणीय या बहुकोणीय मुकाबला होगा, जिससे महागठबंधन का कोई औचित्य ही नहीं रहेगा। इन 8 राज्यों में लोकसभा की 226 सीटें हैं।

हालाँकि, कांग्रेस खुद को एक राष्ट्रीय पार्टी कहती है लेकिन बिहार में महागठबंधन की मुख्य सहयोगी राष्ट्रीय जनता दल (राजद) है और कांग्रेस को 40 में से सिर्फ नौ सीटें दी गई हैं, जबकि बाकी सीटें उपेंद्र कुशवाहा, जीतन राम मांझी और मुकेश साहनी जैसे नेताओं के छोटे दलों को दे दी गईं। तमिलनाडु की 39 लोकसभा सीटों में से कांग्रेस को केवल नौ सीटें मिली हैं जबकि पुडुचेरी में उसे लड़ने के लिए सिर्फ एक सीट दी गई है। नेशनल कॉन्फ्रेंस (एनसी) और कांग्रेस ने जम्मू-कश्मीर की तीन लोकसभा सीटों के लिए गठबंधन किया है और तीन अन्य सीटों पर दोस्ताना चुनाव लड़ने की बात कर रहे हैं। कर्नाटक में जनता दल (सेक्युलर) ने 8 सीटें पाने के लिए काफी मोलभाव किया है और कांग्रेस 20 सीटों पर चुनाव लड़ेगी और राज्य में पहले ही जेडी(एस) के मुख्यमंत्री है।

महागठबंधन में दरारें आ चुकी हैं। झारखंड में 14 लोकसभा सीटें हैं। कांग्रेस को सात सीटें, झारखंड मुक्ति मोर्चा (जेएमएम) को चार, झारखंड विकास मोर्चा (जेवीएम) को दो और लालू प्रसाद यादव के नेतृत्व वाली आरजेडी को एक सीट दी गई थी। आरजेडी ने सीटों के इस बंटवारे पर आपत्ति जताई और चतरा से अपना उम्मीदवार घोषित कर दिया जबकि यह सीट कांग्रेस के हिस्से में आई थी। झारखंड में सीट बंटवारे के समझौते के अगले दिन ही आरजेडी की प्रदेश अध्यक्ष अन्नपूर्णा देवी भाजपा में शामिल हो गईं। महाराष्ट्र में कांग्रेस 26 सीटों पर चुनाव लड़ रही है और राष्ट्रवादी कांग्रेस पार्टी (एनसीपी) अपने लिए 22 सीटें हासिल करने में कामयाब रही है। एनसीपी के साथ गठबंधन के कारण कांग्रेस में आंतरिक कलह चल रही है और कांग्रेस पार्टी के प्रदेश अध्यक्ष अशोक चव्हाण भी इससे नाराज़ हैं।
जहां तथाकथित महागठबंधन को लेकर पूरी तरह से अनिश्चितताएं हैं, वहीं एनडीए के पास पहले से ही 39 राजनीतिक दलों का समर्थन है। एनडीए की एकता तभी नज़र आ गई थी जब उन्होंने बिहार की लोकसभा सीटों के लिए उम्मीदवारों की घोषणा एक साथ की थी। गुजरात के गांधी नगर में भाजपा अध्यक्ष अमित शाह के नामांकन के समय भी पूरी ताकत का प्रदर्शन किया गया। भाजपा पंजाब में शिरोमणि अकाली दल के साथ और महाराष्ट्र में शिवसेना के साथ मिलकर चुनाव लड़ रही है। ये दोनों ही भाजपा के वर्षों पुराने सहयोगी हैं।

राष्ट्रीय स्तर पर विपक्षी एकता का विश्लेषण यह बताता है कि चुनाव पूर्व परिदृश्य में महागठबंधन खंड-खंड है और नेतृत्वहीन है। एनडीए की तुलना में अखिल भारतीय स्तर पर महागठबंधन की मौजूदगी भी वैसी नहीं है, जैसे एनडीए के सभी सहयोगी केवल एक नेता को आगे करके रैलियां कर रहे हैं और वो नेता हैं प्रधानमंत्री नरेंद्र मोदी। महागठबंधन में शामिल दल कई राज्यों में अलग-अलग चुनाव लड़ सकते हैं और जम्मू-कश्मीर और झारखंड जैसे राज्यों में उनके बीच दोस्ताना लड़ाई भी होगी, यह सीटों के बंटवारे को लेकर किसी भी तरह का समझौता कर पाने में मिली शर्मनाक विफलता के अलावा और कुछ भी नहीं है।

राष्ट्रीय स्तर पर विपक्षी एकता का विश्लेषण यह बताता है कि चुनाव पूर्व परिदृश्य में महागठबंधन खंड-खंड है और नेतृत्वहीन है। एनडीए की तुलना में अखिल भारतीय स्तर पर महागठबंधन की मौजूदगी भी वैसी नहीं है, जैसे एनडीए के सभी सहयोगी केवल एक नेता को आगे करके रैलियां कर रहे हैं और वो नेता हैं प्रधानमंत्री नरेंद्र मोदी। महागठबंधन में शामिल दल कई राज्यों में अलग-अलग चुनाव लड़ सकते हैं और जम्मू-कश्मीर और झारखंड जैसे राज्यों में उनके बीच दोस्ताना लड़ाई भी होगी, यह सीटों के बंटवारे को लेकर किसी भी तरह का समझौता कर पाने में मिली शर्मनाक विफलता के अलावा और कुछ भी नहीं है। महागठबंधन का यह शोरशराबा केवल एक ढोंग है और मोदीवाद के विरोध का ये हौआ इस लोकसभा चुनाव से ज्यादा आगे नहीं बढ़ने वाला।


Wednesday 1 May 2019

‘Those who resist tax compliance are the only ones protesting GST’

 NEW DELHI, JUNE 27

Apprehensions regarding the July 1 GST roll-out has resulted in strikes across States, in segments ranging from textiles, grains and spices, to furniture and marble. The ruling BJP is busy addressing these concerns through consultations with different trade bodies, as well as instructive sessions for professionals. Gopal Krishna Agarwal, the BJP national spokesperson on economic issues, says the anxiety is largely owing to misapprehensions about the new tax regime. In an interview with BusinessLine, Agarwal said the demonetisation experience had shown there is popular sentiment for a corruption-free economy, where opposition to a tax-compliant regime would be transient. Excerpts:

You don’t seem to have convinced vast sections of the industry about various aspects of the GST: ranging from the timing, various fitment rates, the increased compliance requirements. How do you plan to address the issue?

Conceptually, no one has a problem with the GST. It does away with the multiplicity of tax structures, subsuming 18 Central, State and local taxes. It results in a reduction of indirect taxes for the consumer, creates ease of doing business by online registration, filling of returns and assessment, and creating ‘one-tax, one-market’. This is not just an economic measure; it is social reform, by ushering in a more transparent, tax-compliant society. For the consumer, it would reduce prices of manufactured goods; for the government it would mean increased tax collection and fiscal consolidation and creation of a simpler system to administer.

But clearly, there are problems. Has there been an institutional response from the BJP to address concerns.

The apprehension is with regard to its implementation. People are worried about how they will be registered, how they will avail of the input tax credits, the anti-profiteering clause and how the benefits of reduced taxes shall be passed on to the consumers. These are concerns that are being addressed through processes of instructions and consultation.

For businessmen who are already registered, the migration is simple and online. They then have only to capture the transaction carefully at the point of supply with full details. The returns, input tax credit, etc will be automatically extrapolated by the GST Network. Small traders with a turnover of up to ₹20 lakh are exempt from GST.

On July 1, the Centre has invited 15,000 chartered accountants for a discussion on the GST and launch of a new course. Prime Minister Narendra Modi will be there as will be Finance Minister Arun Jaitley and Revenue Secretary Hasmukh Adhia. The event will be simultaneously held at State Capitals. I, too, am travelling to many places for awareness programmes. There will be many regional meetings with trade bodies and professionals.

Politically, are you worried about the level of discontent among traders and small industry? They are your traditional constituency.

Apprehensions about the GST are misplaced. Traders, manufacturers and small eateries with turnover between ₹20 lakh and ₹75 lakh have the Composite Scheme option. They only have to pay 1-2 per cent GST, and not avail input tax credit; it benefits the small and medium enterprises. If their turnover is over ₹75 lakh, then they are not small traders anyway.

We are trying to benefit the consumer through anti-profiteering, which basically translates into tax benefits being transferred to them. And there is a separate authority for this.

Similarly, the Centre would have a better system to administer, besides having a wider tax net. People who are protesting — and of course, the Congress and the Opposition would fuel these fires — are those who are unaware or do not want the country to move towards tax compliance. That has been the problem with our economy — an overwhelming percentage of transactions are outside the system. That is why over 58 per cent of the nation’s wealth is being captured by only one per cent people.

So you believe it will have the same level of support as demonetisation?

People supported us because by now there is an understanding that there were two types of leakages — in the tax collection system, and in the delivery mechanism. We have plugged delivery system leakages through direct transfer of subsidies to intended beneficiaries by linking the Jan Dhan Scheme through Aadhaar numbers and mobiles. The second leakage will be plugged through GST — when all business transactions will move through a formal system and the basic cost of a product will be checked.

Some people are comparing GST with Sales Tax only. What is being misconstrued is that GST subsumes other taxes. When GST is higher than Sales Tax, as in the case of real estate (4 per cent sales tax earlier, and about 12 per cent GST now); if floor rates are not reworked, considering input tax credit on steel and cement, etc which was not available earlier, the consumers may be taken for a ride. The anti-profiteering clause kicks in here and the benefits get transferred to the consumer.