of have nots and have lots in shining india

Is India just fitting in with the pattern  of  power in  the world?  The power of the exclusive and  excluding-everyone-else,  elite. Or is there something more to the  success  story of  Shining India??? A shining India that is now lagging behind even poor Nepal.

Hats off Sainath. 

Since 2005-06, taxes and duties for the corporate world and the rich have been written off at the rate of Rs.7 million a minute on average. Duties waived on gold and diamonds in the last 36 months equal the 2G scam amount

Forbes has just added an “errata” to Union Finance Minister P. Chidambaram’s budget speech. The Minister had found a mere 42,800 people in the country with a taxable income in excess of Rs.1 crore a year. Or $184,000 a year. Forbes, the Oracle of Business Journalism, does not list taxable incomes. But it does put up a list each year of billionaires the world over. And in 2013, 55 Indians figure on that list, (up from 48 last year) with an average net worth of around Rs.190.8 billion. 

(See:http://www.forbes.com/billionaires/)Their total net worth is $ 193.6 billion. That’s…er, Rs.10.5 trillion. Chidambaram might want to compare notes with Steve Forbes. They could come up with a lot more names falling within his narrow super-rich spectrum.

One of the biggest write-offs in this year’s budget is the customs duty on gold, diamonds and jewellery — Rs.61,035 crore. That’s more than what’s been written off on “crude oil & mineral oils.” Or even on “machinery.” The waiver on gold and diamonds in just the last 36 months is Rs.1.76 trillion. (Or what we lost in the 2G scam). I guess we shouldn’t be surprised, then, that three new Indian entrants to this year’s Forbes Billionaires List are in the field of jewellery.

It’s not as if we haven’t been generous with them in other sectors, though. The latest write-off in corporate income tax is even higher at Rs.68,006 crore. The total revenue foregone this year (Rs.5.28 trillion), as others have pointed out, is greater than the fiscal deficit. But just look at what the write-offs on corporate tax, excise and customs duties add up to since 2005-06, from when the data begins: Rs.31.11 trillion. (That’s well over half a trillion dollars). It also means we’re writing off taxes and duties for the corporate mob and rich at a rate of over Rs.7 million every single minute on average.

Gee. It seems there’s no need for the super-rich to commit half their fortunes to charity. They are the charity we all of us support. End the lavish waivers, pay your taxes and we’d be in glowing fiscal health. Every other economic survey and/or budget has noted the obscene write-offs as a source of worry and said so. Recall that the Prime Minister and Finance Minister have both in the past promised to end this corporate feeding frenzy at the public trough. But it only gets bigger.

FOOD SECURITY

What also gets smaller is the idea of food security in a nation where the percentage of malnourished children is nearly double that of sub-Saharan Africa. How do they get past the porcine gridlock at the budget trough?

Also getting smaller is the average per capita net availability of foodgrain. And that’s despite showing an improved figure of 462.9 grams daily for 2011. (Caution: that’s a provisional number). Even then, the five-year average for 2007-11 comes to 444.6 grams. Still lower than the 2002-06 figure of 452.4 grams.

It’s scary: as we warned last year — average per capita net availability of foodgrain declined in every five-year period of the 'reforms' without exception. In the 20 years preceding the reforms — 1972-1991 — it rose every five-year period without exception (see: Table 3).

Ah, but they’re eating a lot of better stuff, hence the decline in cereals and pulses.

So drone on the Marie Antoinette School of Economics and assorted other clowns. Eating a lot better? Tell that to the nation’s children — for whom sub-Saharan standards would be an improvement. Tell that to the famished in a country ranking 65 in the 79 hungriest nations in the Global Hunger Index (GHI). (Eight slots below Rwanda.) India’s GHI score in 2012 was worse than it was 15 years earlier in 1996. Tell it to Forbes. Maybe they could do a list of the most insensitive elites in the world. You know who’d top that one.

http://www.thehindu.com/opinion/columns/sainath/the-feeding-frenzy-of-kleptocracy/article4513159.ece?homepage=true