Demonetisation is indeed one of the most buzzed news in Modi government so far. So many discussions have already been made. It became the prime agenda for the oppositions to target the Narendra Modi led government in center. However, it is true that people are still in mystery about the reality of economy itself; forget about demonetization. No one is really putting lights on the real issue; i.e. the growing difference in economy between rich and poor. A nation is impossible to grow in such parallel economy. Shocking fact is that 58 % of India’s total economy is now with only 1% rich group. Naturally, this makes rich get richer and poor get poorer. Pathetic fact is that more the Indian economy is growing more the difference talked above is increasing. Indeed, India as a nation is at much terrible state keeping its assets in mind.
Scenario of Indian Economy in contemporary times:
Indians are hugely dependent upon the government. People here are associated with the government proceeding more than any other nation in the world. It is essential for the government to have enough property or assets to handle such a huge economy. Upon taking a look at the budget of the nation, it can be evident that the amount assigned for expenditure is always higher in comparison to that of income. This makes the government to go for loans. On the other hand, as the vote bank politics is quite established in our nation, no government tries to dissatisfy people or in taking bold decisions for economic reform. As a result, the amount of loan increases. Continuing scenario of such is responsible behind no improvement in economy.
Talking about the source of income, tax collection is indeed the prime way of earning for the government. In fact, the likes of US collect 80% of their total economy through taxes only. People over there too believe in honestly paying the taxes. But, here in India, avoiding taxes is considered as the smartness.
• For example, if we take the case of the economic year 2013, around 3 crore people had deposited the income tax return. But, half among them didn’t deposit any task citing minimal earning. In fact, only around 19,000 people had shown their earning as more than 1 crore. It means only 1% people in nation with 130 core population are paying the tax.
• In India, no tax is applied for people with annual earning less than 2.5 lakh. 20 years back, exemption amount was only 40,000 INR. This clearly tells about how the government is appeasing. Interesting fact here is to mention that India is at number 2 position after Bangladesh, in the list of nations providing highest tax exemption. In comparison, people those who earn more than 18,000 Yuan or around 1 lakh 80,000 too have to pay taxes
• On the other hand, in a nation like India, in which more than 2 crore people go for foreign tours every year demand for tax exemption. It is now clear that the Indians are always ahead when it comes about exempting the taxes.
• Shocking revelation here is to mention that there is no chance of recovery of around 54 thousand crores. These amounts, which hold no chance of recovery are termed as the bad loans or non-performing assets. When Congress led UPA government left the centre, the NPA amount was around 2 lakh 40 thousand crores. The amount has reached more than 8 lakh crores till now.
Can India ever get over of the Capitalists?
Now question is, who are the people those avoid loans and taxes? Needless is to say that most of these are the capitalists or the ultra-rich group of people who take huge loans from the government. A common government employee hardly can avoid, but it is not hidden how these ultra rich people are getting excessive favour from the banks.
In fact, people those who pretend to be serious about the nation’s betterment were found to be finding ways to utilise their saved cashes in all possible ways, instead of delivering to the banks, during demonetization. Hence, as it is said, a nation’s fate always remains in the hands of its people. Hope people, especially from elite class get serious and think about the nation’s interest.