Monday, March 14, 2011

Corruption and Black Money - Control Through Good Governance

The Finance Minister and the Indian Government is all the time boasting of a GDP growth rate of about 8.5% per annum and a promise to maintain the same for coming few years. Can they in the same breath talk of any one  particular value addition in this process excepting one fact that they have not frittered away the national resources in doling out concessions in the name of Aam Admi in form of subsidies, freebies etc. etc.. The golden opportunity that the compulsions of high wages in advanced nations has given to India with its cheap and qualified work force with the right demographic profile as also the limited privatisation in the early nineties is certainly not being properly utilised. Imagine if the opportunity is backed by good governance as was done by Japan and Singapore, where we will be after a decade or so. Needless to emphasize that presently we are being plagued by real bad governance.
A few suggestions from an Aam Admi which can catapult the GDP growth and fate of  have nots of this country in a manner much beyond our imagination.
  • Declare a war on Corruption & Black Money. ( All Political Parties and MP's should not have any objection to this for it cannot come in the way of their political and economic agenda )
  • Make necessary arrangements to get back all black money stashed in foreign countries.
  • Do away with Quotas and Discretions of all political appointees and officials.
  • UID project should be given topmost priority so as to completed in two year time. ( Make available all resources and money ) Its role in achieving better tax compliance, controlling subsidy leakages and midday meal program leakages cannot be undermined as it can certainly reduce them by 25%. But what about the balance 75% and we can make an even bigger dent in such dubious earnings if only we make it a point to link UID number to all immovable property and all major asset classes as also luxury items like cars, motor cycles, refrigerators, tv's, watches etc..
  • Government should acquire powers to buy minimum 2% of property and land deals in secondary market every year at 1.1 times the declared value (chosen by a random number generation technique).
  • Power of attorney in respect of immovable property should be done away with.
  • All reinforcement directorates to be beefed up many folds.
  • Three tier checks on economic status of general public individuals, government officials, politicians, business and corporates.
  • Reinforcement of judiciary to take care of economic offences and disputes to a level so that no case hangs in the courts for more than nine months.
  • And lastly all rags to riches stories and exponentially growing businesses should be reviewed for ascertaining their tax compliance.