A Design Towards Principled, Prosperous & Peaceful Living: Hom e

ArthaKranti Hom
A design towards Principled, Prosperous & Peaceful living e
5/11/17
ArthaKranti Hom
Presentation Animations Statistics
Vision
Social Reality
Economic Reality
Current Reality Loops
Economic Currency
Local Industry Vision Social Reality Calculations
Reality Denomination
Credit Cycle
Internal Borrowings
Banking System
Disinvestment
Credit Credit Direct &
Anti-Social Industries FDI Bank Money
Expansion Establishment Indirect Taxes
High Denomination
Currency
Farmers Suicides
Proposal
Effects of Proposal
Revenue Commodity
Strategy Flawed Taxation Proposal Appeal after BTT Prices
System
Appeal
Linked Proposals
Empowering Democracy
Social Security Scheme Proposed Future
Terrorism Analysis System Reality Strategy
ArthaKranti Hom
Vision
Principled, Prosperous, Peaceful Living
Vasudhaiv
Kutumbakam
Capital One
Formation Economy
Revenue for
Effective
Governance
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Effects of Fiscal Deficit on Local Industry
Unemployment Social
Insecurities
Uncompetitive Reduced Rural

Local Industry / Purchasing
Trade Power
Policies Influenced Local Agriculture

by Foreign Rendered
Interests Uncompetitive
Poor Subsidies
Attract FDI
Infrastructure Curbed
Fiscal Deficit
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Effects of Fiscal Deficit on Credit Cycle & Government Revenue
Uncompetitive Deficit Fiscal

Unemployment Local Industry / Inflation
Budget Deficit
Trade
Hard
Social Credit
Insecurities Policy
Purchasing
Conservativ Power
e Lending Reduced
Inadequate
NPAs Tax Revenue
Increase to Govt.
Inadequate
Low Demand
Capital Supply to
/ Recession
Economy
GDP Growth
Slows Down
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Effects of Internal Borrowings on Fiscal Deficit
Internal
Borrowings
Spent on Non- Fiscal

Developmental
Deficit
Activities
Inadequate Tax
Revenue to Govt.
GDP Growth
Slows Down
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Effects of Fiscal Policy & External Borrowings

on Credit Policy & Banking System
Threat to Local National Policies External

Banking System Influenced Borrowings
Expensive
Fiscal
Capital Deficit
Lending Rates Bank Interest Tax Rebate + High

Increase Rates Interest Rates on
Increase Savings
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Effects of Fiscal Deficit on Disinvestment Policies & Reduced Social
Spending
Fiscal Pressure to Threat to

Disinvestment Organized
Deficit
Employment
Reduced Social
Spending Govt. Control Lost in
Essential
Commodities [e.g.
Public - Private Oil, Medicines etc.]
Partnership
e.g. Toll
Scope for Market

Cost Burden Exploitation
Passed onto
Common Man
Purchasing Severe Impact on Social

Power Reduced Weaker Sections Insecurities
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Effects of Fiscal Deficit on Anti-Social Industries
Increased Congestion, Social

Accidents, Pollution Insecurities
Promoting Increased Direct Ill

use of Oil Effects on
Automobiles Public Health
Lack of
Increase in oil infrastructure / Promotion of Promotion of
Import Losses public amenities Liquor, Gutkha, State Run Lottery
(Subsidies) (e.g. public transport Cigarettes Schemes
system)
Fiscal Inadvertent Promotion of

Deficit Anti-Social Industries
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Effects on Taxation System & High Denomination Currency
Social
Uncompetitive Insecurities
Local Industry /
Trade Fiscal
Deficit Poor
Governance
Inadequate Tax
GDP Growth Parallel
Revenue to Corruption
Slows Down Economy
High Govt.
Input
Costs
Tinkering of Black Non Traceable
Inadequate Taxation System Money Transactions
Capital Expensive
Supply to Capital
Economy
Flawed Taxation Tax Ease of Cash
Hard Credit System Evasion Transactions
Policy
Poor Credit / Less Use Large

Excessive Fiscal
Capital of Banking Denomination Inflation
Seigniorage Deficit
Formation System Notes
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Effects of Fiscal Deficit on Credit Cycle & Farmers
Suicides
Farmers Social Unrest

Suicides
Unjust Borrowings Deficit Fiscal

Inflation
from Private Sources Budget Deficit
Hard
Low Credit Supply
Credit
to Agriculture
Policy
Individuals Credibility Poor Credit /

NOT Established Capital Formation
Less Use of
Banking System
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Flawed Taxation System
Narrow Base and Limited Coverage of Direct Taxation
Direct to Indirect Tax Ratio is 44:56 Show Statistics
Inequitable and hence Regressive Show
Non-Productive Show
Uncertain Show
Inelastic Show
Uneconomical Show
Complex nature of taxes Show
Tax laws open for interpretation Show
How should it be Show

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Currency Denomination
Per Capita Highest Per Capita Income /

Country
Income Denomination Highest Denomination
USA $ 53,000 $ 100 530
UK 25,000 50 500
Japan 50,00,000 10,000 500
India Rs. 90,000 Rs. 1,000 90
Currency Denomination Distribution

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Credit
Establishment
Less Use of
Banking System
Obstructs Credit
Registration of a
lot of Citizens in
the National
Economy
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ArthaKranti Proposal
Withdrawal of Existing Taxation System Completely* (except Customs/Import Duties)

* All Central, State and Local Government Taxes Direct and Indirect
Every Transaction routed through a bank will attract a certain deduction in appropriate
percentage as Bank Transaction Tax i.e. Single Point Tax Deducted at Source (say 2 %)
This deduction is to be effected on receiving/credit account only
This deducted amount will be credited to different Government Levels like

Central, State and Local (as say 0.7 %, 0.6 % and 0.35 % respectively)
Transacting Bank will also have its share in this deducted amount (say 0.35 %)
as the Bank has a key role to perform
Cash Transactions will not attract any tax
Withdrawal of High Denomination Currency (say above Rs. 50)
Government should make legal provisions to restrict cash transactions up to a certain

limit (say Rs. 2,000)
This means, Cash Transactions above this limit will NOT enjoy any legal protection.
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Effects of ArthaKranti Adequate
Proposal Revenue to
Government
Tax Revenue Adequate

Increases by Orders Revenue to
of Magnitude Govt. Show
Increase in
Banking
Transactions
High Value Cash

Transactions
Not Practical
Legal Provision Made

High Denomination Existing Cash
Bank Transaction Tax Restricting Cash Transactions
Currency is Removed Deposited in Banks &
(Say 2%) up to a Certain Limit
(Say above Rs. 50) Attracts BTT
(Say Rs. 2000)
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Effects of ArthaKranti Adequate Anti-Social and Anti-
Proposal Revenue to National Elements
Government Effectively Checked
Anti-Social and Anti-

Black Money
National Elements
Eliminated
Effectively Checked
Opportunities
for Corruption
Eliminated
Tax Collection is Fake Currency

Simplified Eliminated

(Say Rs. 2000)
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Effects of ArthaKranti Adequate Anti-Social and Anti- Industry
Proposal Revenue to National Elements Trade, Supply
Government Effectively Checked Stimulated
Industry Trade, Purchasing

Market Demand Power of
Supply
Boosted Society
Stimulated
Increased
Increase in Cheap and Easy

Banking Capital
Transactions
Net Banking Globally

Part of BTT Competitive
Revenue
goes to Banks Interest Rates
Increases

(Say Rs. 2000)
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Anti-social and anti-
national elements
Proposal Revenue to National Elements Trade, checked
effectively Supply
Purchasing
Cheap and Easy
Power of Society
Capital
Increases
Prices Market Demand

Drop Boosted
Show
Commodities and Focus Shifted to Industry Trade,

Services are FREED Innovation from Supply
from Tax Influence Tax Manipulation Stimulated

(Say Rs. 2000)
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Proposal Revenue to National Elements Trade, Supply
Industry Trade,
Money Supply
Supply
Regulated
Stimulated
Adequate SLR
Revenue to Revised
Govt.
Tax Revenue Black Money is

Increases by Orders Converted into
of Magnitude White

(Say Rs. 2000)
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Effects of ArthaKranti
Proposal
Anti-Social and Anti- Social Industry Trade,

National Elements Employment
Security Supply
Effectively Checked Opportunities
Restored Stimulated
Empowered Effective Cleansed Black Money

Government Governance Political System Eliminated
Fiscal Budgetary Globally

Govt. Debts
Deficit Provision for Competent
Checked
Recovered Political System Agro-Segment
Adequate Appropriate
Revenue to Govt. subsidies

(Say Rs. 2000)
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Increased Anti-Social and Anti- Decentralized

National Elements Elimination of
Purchasing Revenue
Effectively Checked Black Money
Power Collection System
Building
Social Security
Individuals
Scheme
Credibility
Cheap and
Easy Credit
EMPOWERED Industry, Trade,
Supply
Availability
INDIA Stimulated
Revenue for Tax Burden

Banking Reduced with BTT
Budgetary
Creativity Elimination of Adequate
Provision for
FREED from Tax Means & Motives Revenue to run
Political
Manipulation for Corruption Govt. Programs
System

(Say Rs. 2000)
ArthaKranti Hom
ArthaKranti Hom
Jai Hind!
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Back
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Distribution of Central Governments Back

Direct & Indirect Tax Revenues
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Distribution of State Governments Back

Direct & Indirect Tax Revenues
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Distribution of Central & State Governments Back

Combined Direct & Indirect Tax Revenues
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Distribution of Central & State Governments Back

Combined Direct & Indirect Tax Revenues for the Year 2013-14
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Comparison of Currency Denomination Distribution: Indian Rupee & U. S. Dollar
Note: Absence of Denominations Larger Than $ 100 in U. S. and the fact that
considerable part of the U. S. Currency in $ 100 and $ 50 Bills is in use outside
U. S. it being an International Currency.
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Credit Expansion through Banking
System
Primary Loans / Derivate

Banks Cash Reserves
Deposits Deposits
A 20001 200 18002
B 1800 180 1620
C 1620 162 1458
D 1458 145 1313
E 1313 131 1182
Eventually 20,000 2000 18,0003
1 - Original Primary Deposit

2 - Original Excess Reserves
3 - Total Capital Formation through Credit Expansion with Original Primary Deposit of Rs. 2000
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Analysis of Commodity Prices
MFG Taxes Sales Price

Product Sales Price
Cost After AK BTT
Cement
~ 186 ~ 84 ~ 270 ~ 190
Bag
Motor
~ 33,900 ~ 15,500 ~ 49,400 ~ 34,600
Bike*1
Petrol ~ 51
~ 50 / Liter ~ 23 / Liter ~ 73 / Liter
(Delhi)
Petrol ~ 80 / Liter ~ 51
~ 50 / Liter ~ 30 / Liter
(Pune)
Diesel ~ 44 / Liter ~ 11 / Liter ~ 55 / Liter ~ 50

(Delhi)
Diesel ~ 17 / Liter ~ 61 / Liter ~ 50

~ 44 / Liter
(Pune)
*1: Hero Honda Passion Plus, Pune All Figures in Indian Rupees
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Sample Calculations
Narrow Money (Transaction Money) (M1) = Currency Money + Demand Deposits
For Year 2015-2016:

Currency Money = 16,60,000
Demand Deposits = 10,00,000
Narrow Money (M1) = 26,60,000
Assuming 20 % of M1 to be active in Daily Bank Transactions,

Amount of Money in Daily Bank Transactions (D1) = 5,32,000
Amount of Money in Yearly Bank Transactions (Y1)
= D1*300 = 5,32,000 *300 (65 Days of Bank Holidays) = 15,96,00,000
Considering Bank Transaction Tax Rate as say 2 % with Shares of Central Government
= 0.7 %, State Government = 0.6 % and Local Government = 0.35 %
Combined Revenue for Centre (0.7 %) and States (0.6 %)

= Y1 * 1.3/100
= 15,96,00,000 * 0.013
= 20,74,800 = ~ 20,75,000
Revenue of Central Government (0.7 %) = ~ 11,17,000

Revenue of State Governments (0.6 %) = ~ 9,58,000
Revenue of Local Governments (0.35 %) = ~ 5,59,000
Revenue for Banks (0.35 %) = ~ 5,59,000
All Figures in Crore Rupees
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Dependency on FDI
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Dependency on FDI
China
India
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All Figures in Crore Rupees

ArthaKranti Hom
The ArthaKranti
National Reform Bill
Implementation
The Citizens
The ArthaKranti Members of
Charter of
Doctrine Parliament
Demand
Political Leaders Business

Leaders Experts Media
& Parties
Show Show Show Show
Advertising
Campaign
ArthaKranti Public The Indian

Pratishthan Presentation Citizen
Media Tools
ArthaKranti Hom
Empowering Democracy
Implementation of ArthaKranti proposal. Its Effects are

Enough revenues with government to make legal provision of funds
for political system
High valued cash transactions difficult
Increase the use of the banking system
Effective taxation system leading to eradication of black money.
Provision for funding of the political system

Funding of the political parties based on a per person amount for the
entire population for a five year period. Say Rs. 100/person
Total population is to be considered while making this provision
The actual fund availability will be in proportion to the actual voting
percentage
This funding will be available only to Registered political parties
securing more than a certain minimum percentage of votes cast
Sample Calculation for funding political parties
Giving healthy monthly allowances to the elected representatives

The proposal for allowance of elected representatives
ArthaKranti Hom
Empowering Democracy Back
Calculations
At the Central Level:
Total provision for the entire population for the period of 5 years -
125 Crores * 100 (per Person Amount) = Rs. 12,500 Crores
Provision per year Rs. 2,500 Crores
Actual funding will depend on the total percentage of votes cast

The Total Amount available in proportion to a total valid percentage of
votes - Say 60 %
Amount available for 5 year period = 12,500 * 60/100 = 7,500 Crores
Amount available per year = 7,500/5 = 1,500 Crores
At the State Level:

State Population = say 10 Crores
Funds Provision for 5 year period
= 10 Crores * Rs. 100 = Rs. 1,000 Crores
At the Local Level:

Population of an urban area = say 10 Lakh
Funds Provision for 5 year period = 10 L * Rs. 100 = Rs. 10 Crores
ArthaKranti Hom
Empowering Democracy Back
Allowance for Elected Representatives
For MPs at Rs 10 Lakh/month
For MLAs at Rs 5 Lakh/month
For Corporators at Rs. 1,00,000/month
For Village Development Officer at Rs. 10,000/month
The spending with these provisions will be

- At the Central Level -- 785*10L*12 = Rs. 942 Crores against a
projected revenue of ~ Rs. 8,00,000 Crores = ~ 0.12 % of the revenue
- At the State Level (e.g. Maharashtra)

366*5L*12 = ~ Rs. 220 Crores against a projected revenue of
~ Rs. 1,00,000 Crores = 0.22 % of the revenue
- At the Local (Corporation) Level (e.g. Aurangabad)

100*1,00,000*12 = Rs. 12 Crores against a revenue of ~ Rs. 250
Crores = 4.8 % of the revenue
ArthaKranti Hom
Empowering
Improved democracy
governance
Increased law Improved Increased Politics focused on

and order functioning and stability of real issues
decision making government and national interests
Decreases ill-influence
Politics Political parties
professionalized interested
of local parties
as the qualified people Dignity & public in increasing voting
in national politics
trust restored
will take it up
Funding to political
parties based on the
Transparency percentage of votes
in politics won
Decreased dependence Assured Effective funding available

on clean for political parties depends
corruption and criminals funding upon voting percentage
Appropriate
Eradication Legal provision of Provision of funding
remuneration for
of Black funds for politics at all for political parties
elected representatives
Money levels based on population
at all levels
ArthaKranti Hom
Jai Hind!
ArthaKranti Hom
Social Security Proposal

A Social security identification (SSID) is issued to every Indian Citizen.
To begin with the beneficiaries of the Social Security Allowance Scheme will be all
adult citizens of India beneath the poverty line.
For every deserving adult, a fixed amount (linked to DA), Social Security
Allowance, is credited per month into a unique bank account linked to the SSID -
Say Rs. 2,000/ pm -- Based on Food (Rs. 900/-) + Shelter (Rs. 500/-) + Clothing
(Rs. 300/-) + Health (Rs. 300/-)
Government will remove all non-merit subsidies thus freeing up revenue to pay
the Social Security Allowance to the deserving citizens
All Social security allowance beneficiaries can get credit of Rs. 50,000/- (upper
limit) from banks
Restrictions to ensure correct usage

- No rights to SSA beneficiaries on income for hereditary property
- SSA amount cant be used as security against any other loan
Uniform implementation throughout the country

ArthaKranti Hom
Social Security Proposal

Calculations
In first phase, scheme will be implemented for people below poverty line
Number of people below poverty line (monthly income below Rs. 300/-)
is 30 Crores
Total monthly expenditure = Rs. 2,000 * 30 Crores = Rs. 60,000 Crores
Total yearly expenditure = Rs. 60,000 Crores * 12 = Rs. 7,20,000 Crores
Excluding current expenditure of Government over subsidies of - Rs.

1,50,000 Crores, additional yearly expenditure will be -
7,20,000 - 1,50,000 = Rs. 5,70,000 Crores
Considering current national income of Rs. 40,00,000 Crores, this

additional expenditure would be ~ 15 % of national income
ArthaKranti Hom
Improved
Social quality of life
security Balanced
Development
Dissemination Opportunities of
(Rural and Market driven
of Population Corruption are
Urban) quality supply
reduced (PDS, fuel
etc.) of goods &
Decreased Social
services
Unrest (reduced
Increased Business Credit / Capital
Naxalism, terrorism,
/ Employment expansion
extremism, etc.) Price
opportunities in the banking system
locally distortion
as a whole removed
Farmers
suicide Hugely increased
checked Increase in Increased Establishment
demand Purchasing use of of Individual
for goods and power of the Banking credibility
services poor people system with bank
(Necessities)
Assured
dignified
existence for Credit
every citizen Social Security Allowance
available
(Say Rs. 2,000 monthly)
to the poor
Effective (linked to DA)
Saved Gov. Revenue
implementation (Food, clothing, shelter,
Expenditure
of child welfare health insurance)
laws & schemes
SSA beneficiaries will SSA cant be Bank account Unique SS Maximum Credit Withdrawal of
not have right on used as for SSA code for Limit Non-merit
income from hereditary security for (associated every For SSA beneficiaries subsidies
property any other loan with SS Code) citizen up to say, Rs. 50,000 (Central and State)
ArthaKranti Hom
Jai Hind!
ArthaKranti Hom
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Government Officials
H.E. Smt. Pratibhatai Patil, Dr. Montek Singh Ahluwalia, Dr. Bhalchandra Mungekar,
Hon. President of India Deputy Chairman, Planning Member, Planning Commission
(Personal meeting twice) Commission (Book) (Presentation)
Dr. Adarsh Kishore Saxena -

Ex-Union Finance Secretary (Presentation in the presence of Smt. Pratibhatai Patil)
Mr. Johny Joseph -

Chief Secretary, Maharashtra (Presentation To CM, Maharashtra )
Mr. Agarwal -
Finance and Planning Secretary, Maharashtra (Presentation To CM, Maharashtra )
Dr. Parthasarathy Shome,
Ex-Chief Economic Advisor to Mr. Sangith Rao -
the Union Finance Minister Principal Secretary, Maharashtra (Presentation To CM, Maharashtra )
(Presentation North Block)
ArthaKranti Hom
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Economists & Experts
Dr. D. R. Pendse Dr. Narendra Jadhav P B Sawant M N Chaini

Justice Supreme Court
Chandrahas Deshpande
Sunil Bhandare
Jairaj Salgaonkar
V. M. Govilkar
R A Mashelkar
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Political Back
Congress
Leaders
Manmohan Singh, P. Chidambaram Sushil Kumar Shinde, Prithviraj Chavan

Hon. Prime Minister Union Finance Minister Union Power Minister MOS, PMOs Office
(Book) (Book) (Meeting)
V George
P.A. to Smt Sonia Gandhi (Presentation)
Pawan Kumar Bansal, Vilasrao Deshmukh,

Minister of State for CM, Maharashtra
Finance (Presentation) (Presentation)
ArthaKranti Hom
Political Back
BJP
Leaders
LK Advani Bhairon Singh Yashwant Sinha Arun Shourie Sushma Swaraj

Shekhawat
Balbir Punj SS Ahluwalia Gopinath Munde Nitin Gadkari Rajeev

Chandrashekhar
Sompal Shastri Vinay Sudheendra

Sahasrabuddhe Kulkarni
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Political Back
Shiv Sena
Leaders
Mohan Rawle Suresh Prabhu
Political leaders MNS
Raj Thackeray Rajan Shirodkar
Shweta Paralkar
Shishir Shinde
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Political Back
NCP
Leaders
Sharad Pawar Jayant Patil
Political leaders CPI
D Raja
Dr. Kango
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Industrialists
Deepak Ghaisas Narayan Murthy

I-Flex solutions Infosys
Arvind Padhye TCS Pune Center Head

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Media Experts
Kumar Ketkar Raju Parulekar Prem Shankar Jha

Loksatta E TV Hindustan Times
Rajeev Khandekar Star TV
Yamaji Malkar - Sakal

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Creative Artists
Vijay Tendulkar Mangesh Tendulkar Sachin Pilgaonkar Ashok Saraf Nivedita Saraf
Nina Kulkarni Mohan Joshi Kiran Shantaram Atul Parchure Prashant Damle
Swapnil Bandodkar
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Educational Institutions
Goa Commerce College
Osmania university
NGOs
Loksatta
Maitri
i-Watch
Prayas (Reli group)

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Terrorism in India
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How ArthaKranti
we can tackle this problem? Hom
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Terrorism Analysis
Reduced Lack of Reduced

Social Education & Unemployment Purchasing
Spending Skills Power
Flawed Taxation System High Commodity

Prices due to Heavy
Indirect Taxes
Tax Evasion No Access

to Credit
Under-utilized Individuals Deprivation from

Banking Credibility not Resources and Means
System Established (Credit) to Acquire Them
Inadequate
Money Supply
to Economy Poverty
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Terrorism Analysis
Loss of faith in peaceful, democratic process,

no hopes of getting justice without resorting
to violence
Desperation Rebellious Tendency
Deprivation, Extreme Sense of Hurt, Damage to

Disparity, Envy Self Esteem, Indignation
Social Oppression
Poverty (Communal / Religious /
Caste / Linguistic etc.)
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Physical constraints (Porous borders, Parallel economy, Corruption, Fake /

unregulated coastlines) high denomination currency
Logistic support, funding

Lack of clear and firm
and training etc from
Foreign (therefore,
hostile foreign
Defense) policy
Terrorism organizations / nations
Public sympathy, Weak Systemic Administrative

national Character weaknesses in governance
and law enforcement
Birth of a
militant
Propaganda for masses,

Indoctrination of
individuals
Religious Perceived Political / Economic /

Dogma Historical injustice Philosophical ideology
Loss of faith in peaceful, democratic process, no hopes of getting justice without resorting
to violence
ArthaKranti Hom
ArthaKranti Proposal
Withdrawal of existing Taxation System Completely (except Customs/Import Duties)
Every Transaction routed through a bank will attract a certain deduction in appropriate
percentage as Bank Transaction Tax i.e. Single Point Tax Deducted at Source (say 2 %)
This deduction is to be effected on receiving/credit account only
This deducted amount will be credited to different Government levels like

Central, State and Local (as say 0.7 %, 0.6 % and 0.35 % respectively)
Transacting Bank will also have its share in this deducted amount (say 0.35 %)
as the Bank has a key role to perform
Withdrawal of High Denomination Currency (say above Rs. 50)
Cash Transactions will not attract any tax
Government should make legal provisions to restrict cash transactions up to a certain

limit (say Rs. 2000)
ArthaKranti Hom
Effects of Proposal
Reduced Lack of Reduced

social education & Unemployment purchasing
spending skills power
Flawed taxation system High commodity

prices due to heavy
indirect taxes
Tax evasion No access

to credit
Individuals Deprivation from

Under-utilized credibility
banking resources and means
not (credit) to acquire them
system established
Inadequate
Adequate
money supply
to economy
revenue with
Government
Poverty
ArthaKranti Hom
Effects of Proposal
Reduced
Unemployment purchasing
power
Flawed taxation system High commodity

prices due to heavy
indirect taxes
Tax evasion No access

to credit

system established
Inadequate
No
money supply
to economy
Single point
taxation system
Black
Money
Poverty
ArthaKranti Hom
Effects of Proposal
Individuals Banking Reduced

credibility transactions Unemployment purchasing
established increased power
No access
to credit

system established
Inadequate
money supply
to economy Poverty
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Effects of Proposal
Industry, trade, Reduced

supply Unemployment purchasing
stimulated power
Individuals
Cheap & easy Single point credibility
capital taxation system established
Deprivation from
resources and means
(credit) to acquire them
Purchasing
power
increased
Poverty
ArthaKranti Hom
Effects of proposal


Foreign (therefore,
hostile foreign
Defense) policy

and law enforcement
Birth of a
militant
Poverty
Adequate Individuals Single point No Purchasing Industry,

revenue with credibility taxation Black power trade, supply
Government established system Money increased stimulated
ArthaKranti Hom
Effects of Proposal


Foreign (therefore,
hostile foreign
Defense) policy

and law enforcement
Birth of a
militant
Social Empowered
Security Government
Adequate Individuals Single point No Purchasing Industry,

revenue with credibility taxation Black power trade, supply
Government established system Money increased stimulated
ArthaKranti Hom
ArthaKranti Hom
Jai Hind!

A Design Towards Principled, Prosperous & Peaceful Living: Hom e

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ArthaKranti Hom

A design towards Principled, Prosperous & Peaceful living e

Uncompetitive Reduced Rural

Policies Influenced Local Agriculture

Effects of Fiscal Deficit on Credit Cycle & Government Revenue

Uncompetitive Deficit Fiscal

Effects of Internal Borrowings on Fiscal Deficit

Spent on Non- Fiscal

Effects of Fiscal Policy & External Borrowings

Threat to Local National Policies External

Lending Rates Bank Interest Tax Rebate + High

Fiscal Pressure to Threat to

Scope for Market

Purchasing Severe Impact on Social

Increased Congestion, Social

Promoting Increased Direct Ill

Fiscal Inadvertent Promotion of

Poor Credit / Less Use Large

Farmers Social Unrest

Unjust Borrowings Deficit Fiscal

Individuals Credibility Poor Credit /

Flawed Taxation System

Narrow Base and Limited Coverage of Direct Taxation

Direct to Indirect Tax Ratio is 44:56 Show Statistics

Inequitable and hence Regressive Show

Complex nature of taxes Show

Tax laws open for interpretation Show

How should it be Show

Per Capita Highest Per Capita Income /

USA $ 53,000 $ 100 530

Japan 50,00,000 10,000 500

India Rs. 90,000 Rs. 1,000 90

Currency Denomination Distribution

Withdrawal of Existing Taxation System Completely* (except Customs/Import Duties)

This deduction is to be effected on receiving/credit account only

This deducted amount will be credited to different Government Levels like

Cash Transactions will not attract any tax

Withdrawal of High Denomination Currency (say above Rs. 50)

Government should make legal provisions to restrict cash transactions up to a certain

Tax Revenue Adequate

High Value Cash

Legal Provision Made

Anti-Social and Anti-

Tax Collection is Fake Currency

Legal Provision Made

Industry Trade, Purchasing

Increase in Cheap and Easy

Net Banking Globally

Legal Provision Made

Prices Market Demand

Commodities and Focus Shifted to Industry Trade,

Legal Provision Made

Tax Revenue Black Money is

Legal Provision Made

Anti-Social and Anti- Social Industry Trade,

Empowered Effective Cleansed Black Money

Fiscal Budgetary Globally

Legal Provision Made

Increased Anti-Social and Anti- Decentralized

Revenue for Tax Burden

Legal Provision Made

Distribution of Central Governments Back

Distribution of State Governments Back