AIFON

The first decisions that the AAP took in Delhi even before the passing of the vote of confidence was to declare subsidies on electricity and water. Though this was part of the poll promise, the expectation was that AAP will take steps to improve efficiency in distribution of electricity and water, check if any over billing of costs had been resorted to by the electricity companies.

However AAP misused its mandate to take money out of the Government coffers and distribute it to the voters. This was no different from parties who distributed colour TVs, laptops etc.

Was it not an act of “Corruption”?

This action of AAP has now triggered similar demands from other parts of the country and soon we will have other parties also forced to announce various financial benefits to the people not with reduced cost of administration but by simply doling out moeny from the Government coffers and printing notes.

Congress has in the last several years mis managed the economy and has lead to high inflationary pressures. With this wave of voter appeasement policies that AAP has unleashed, we will not be able to combat inflation in the coming years also. Finally, it will be the same voter who receives Rs 300 per month rebate on electricity who pays Rs 3000/- per month more for his monthly living expenses.

What we need to tell our voters is that it is the responsibility of the Government to improve efficiency, reduce cost and then reduce the tax burden on the society…not simply take money out of the treasury and distribute.

Is this the kind of economic policies that we look for?

Perhaps AAP does not understand such economics which of course require some time to implement. But AAP is in a hurry to go into the national elections and snatch  part of the votes of BJP so that Congress would get an advantage over BJP.

Right thinking voters need to analyse the impact of AAP entering the national fray at this point of time and what it is likely to achieve for itself and for Congress and then take a decision whether to vote for AAP or not.

Naavi

As a Citizen of India

One of the major policy initiatives that is being debated by BJP if elected to power in 2014 is the “Abolition of Personal Income Tax”. This would be a revolutionary step that can make significant difference to the economy of the country.

The total IT collections of the Government includes “Personal Income Tax”, “Income from Business” and “Corporate Income Tax”. There are sub categories such as Tax on investment earnings, service tax etc.

This article in First Post makes a detailed case for supporting this idea proposed by BJP and is worth a serious reading.

There is no doubt that the decision if fully endorsed by the BJP manifesto will be a popular move. However, Congress is likely to make it difficult for the next Government to take such decisions by emptying the Government resources before the elections and challenging any move that affects the inflow of income to the Government.

Presently the total revenue earning of the order of Rs 2,50,000 crores. Hence if the Government has to give up this huge revenue source which is around 20% of the total revenue, then the Government needs to think about how it would replace this revenue loss with

a) Additional revenue from indirect taxes

b)Additional revenue from corporate tax

c)Savings in expenditure

The abolition of non corporate personal income tax (including tax on firms and business income of professionals)  will provide a huge boost to the sentiments in the market and provide an incentive for professionals and self employed to earn more without resorting to dishonest methods of hiding income or inflating expenditure. The release of human resources which are unproductively employed in such operations should provide a push to growth in the economy though it is difficult to quantify such benefits.

It can however be expected that there would be a greater demand for manufactured products leading to a higher collection of indirect taxes. Probably a little hike in indirect taxes can be considered.

In order to encourage flow of savings into productive purpose, a tax on ” Liquidation in Investments” in the form of “Expenditure Tax”, “Continuation of tax on investment trading etc” can be considered.

Any amount left by public which is left in the Banking system is likely to benefit the economy in general particularly if the Government also initiates some additional banking policy changes that will drive more funding for the “Manufacturing Sector” of the economy.

One such option is to incentivize the banks on their long term funding of manufacturing sector for expansion and modernization. The incentivization could be in such form where the profitability of the Banks increase without any specific Interest subsidy from the Government. For example, the Government may consider linking its capital infusion into public sector banks to the index of growth in Bank’s lending to manufacturing sector.

It is good that BJP is considering some innovative financial sector reforms while other parties like AAP are falling back on “Popular Subsidies”.

Naavi

Mr Prashant Bhushan who caused a national uproar by making an irresponsible statement about Kashmir is now trying to further provoke the public by making further statements justifying his stand.

It is better Mr Prashant Bhushan keeps quiet rather than trying to say that BJP and Sangh Parivar is frustrated etc. The way AAP is dragging he name of BJP hints at the possibility that the party is politicizing the issue deliberately. This attitude must be condemned.

Mr Arvind Kejriwal instead of disciplining his cadre and admitting that his party has no policy at present on National security issues was childish in stating that public can beat me if they like.

This is not a statement expected from a responsible leader aspiring to shoulder  greater responsibilities.

Naavi

As a Citizen of India

The immediate outburst of Mr Kumar Vishwas of AAP on the attack on AAP party office has been to accuse BJP. This Anit BJP stance appears to be the principle that drives the party.

Right from the very beginning it may be observed that AAP has always been more anti BJP than anti Congress. It has never addressed any issue of corruption without using the BJP and Congress phrase. It has not even addressed the issue as “Congress and BJP”. BJP has always been the first accused in any of the charges that AAP has made.

The anger of the public agaisnt Prashant Bhushan’s statement has been wide spread and only the blind can ignore the adverse import of the comment. There was therefore an “Aam Admi Anger”  against the party.  Such aam admi’s who expressed the anger could have come from any party including earlier sympathizers of AAP itslf.

To jump to a conclusion and accuse BJP was an irresponsible statement from an Arrogant Anarchist Party member.

It appears that every one of the AAP leaders have a bad trait which has come out into the open too soon for comfort.

Naavi

As a Citizen of India

AAP is therefore unair

It is reported that Congress has set a budget of over Rs 500 crores for advertising directed at improving the image of Mr Rahul Gandhi, (RG) the Congress candidate for the PM’s post in 2014.

The blitz is likely to start after 17th January when Mr RG is set to be formally announced by Congress as the PM’s candidate.

As a corrolloray, one can expect that the media will now turn Rahul friendly both because of the flood of PR notes that will come out from the PR firm but also as a voluntary decision of the media managers who would like to get a good chunk of the budget.

I expect to see the trend change in debates on Times Now/NDTV/CNN IBN and Headlines Today. Most of these are already Congress friendly because of the earlier years of business patronage and will now have a greater reason to support a “Change of heart” by RG.

Related Article in ET

Naavi

As a citizen of India

Now it is the turn of Yogendra Yadav, another prominent leader of AAP to unleash another dark side of AAP politics. Mr Yadav has indicated that the party would fight for more “Reservation”.

See Economic Times

The reservation politics based on caste started by Mr V.P.Singh has created complete division of people in India and it appears that AAP will join other political parties to exploit the caste and other divisive policies.

India will not progress until the system of “Reservation” of all kinds is given a go by through a systematic reduction year by year.

Unfortunately, no Political party seems to have the guts to take the bull by its horn. AAP being an opportunistic party cannot be expected to tackle this issue. But atleast they can refrain from further proliferating the divisive thoughts.

Naavi

As a Citizen of India

The justification of Prashant Bhsuhan of his stand on Kashmir indicates either AAP leaders have little concern for Indian security or that they are too naive to Govern.

But Prashant Bhushan’s comment has to be seen in the background of Mr Arvind Kejriwal meeting Taqueer Raza Khan accused of having been involved in some riots during the Delhi elections and seeking his support. This gave the early indication about lack of ethics in the party. The fact that Mr Kejriwal praised Mr Taqueer and said his support would be useful for fighting “Corruption” was a highly hypocritical statement. It would have been more acceptable if he had admitted that he was wooing the muslim votes.

AAP taking the support of Congress was followed by the party going silent on any action against corruption of the previous Government of Sheila Dikshit. The only anti corruption measure they have taken is against the tanker mafia. On the other hand they had no difficulty in using the Government Coffer to dole out subsidies on power and water even before they faced the confidence vote. It would have been more ethical if they had announced their intentions but brought about some economic cover for generating a surplus to meet the intended subsidy investment.

Now we see even more serious charges coming out against AAP with accusations that AAP is being propped up by national and international players interested in destabilizing the country. (See the article here) .

We look forward to proper explanation from Mr Kejriwal on these issues.

Naavi

As a Citizen of India