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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Presentation

    Vision

    Social Reality

    Economic Reality

    Current Reality Loops

    Proposal

    Effects of Proposal

    Strategy

    Social Security Scheme

    Linked Proposals

    Empowering Democracy

    Animations

    CreditEstablishment

    Vision

    Flawed TaxationSystem

    EconomicRealitySocial Reality

    Appeal

    FDICredit

    Expansion

    Local Industry

    Credit Cycle

    Farmers Suicides

    Internal Borrowings

    Banking System

    Disinvestment

    High Denomination Currency

    ProposedS stem

    Statistics

    CalculationsCurrency

    Denomination

    Bank MoneyDirect &

    Indirect tax

    Revenue afterBTT

    Proposal

    Anti-Social Industries

    CommodityPrices

    Appeal

    Terrorism Analysis Strategy

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Vision

    Vasudhaiv

    Kutumbakam

    One

    Economy

    Capital

    Formation

    Revenue for

    Effective

    Governance

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Economic Reality

    Interest onExternal Debt

    Cost ofrunning Government

    National Security

    Infrastructure, Agriculture,Needs of Common man

    Complex

    Taxation

    system

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of Fiscal Deficit on Local Industry

    Fiscal Deficit

    PoorInfrastructure

    PoliciesInfluenced by

    Foreign Interests

    Attract FDI SubsidiesCurbed

    UncompetitiveLocal Industry /

    Trade

    Unemployment

    Local AgricultureRendered

    Uncompetitive

    Reduced RuralPurchasing

    Power

    SocialInsecurities

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of Internal Borrowings on Fiscal Deficit

    FiscalDeficit

    InternalBorrowings

    Spent on Non-Developmental

    Activities

    Inadequate TaxRevenue to Govt.

    GDP Growth

    Slows Down

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of Fiscal Policy & External Borrowingson Credit Policy & Banking System

    FiscalDeficit

    ExternalBorrowings

    National PoliciesInfluenced

    Threat to LocalBanking System

    ExpensiveCapital

    Lending RatesIncrease

    Bank InterestRates

    Increase

    Tax Rebate + HighInterest Rates on

    Savings

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of Fiscal Deficit on Anti-Social Industries

    Fiscal

    Deficit

    Increased Congestion,Accidents, Pollution

    SocialInsecurities

    Inadvertent Promotion of

    Anti-Social Industries

    Promotion of

    State Run LotterySchemes

    Increase in oil

    Import Losses(Subsidies)

    Promoting Increaseduse of OilAutomobiles

    Lack ofinfrastructure /public amenities

    (e.g. public transportsystem)

    Promotion ofLiquor, Gutkha,

    Cigarettes

    Direct IllEffects on

    Public Health

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects on Taxation System & High Denomination Currency

    FiscalDeficit

    Inadequate TaxRevenue to Govt.

    Tinkering ofTaxation System

    UncompetitiveLocal Industry

    / Trade

    ExpensiveCapital

    Flawed TaxationSystem

    Inflation

    BlackMoney

    ParallelEconomy

    PoorGovernance

    SocialInsecurities

    Corruption

    Non TraceableTransactions

    Ease of CashTransactions

    Large

    DenominationNotes

    Less Use

    of BankingSystem

    GDP GrowthSlows Down

    InadequateCapital

    Supply toEconomy

    Poor Credit /

    CapitalFormation

    HighInput

    Costs

    TaxEvasion

    Fiscal

    Deficit

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    h i

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Flawed Taxation System

    Narrow Base and Limited Coverage of Direct Taxation

    Direct to Indirect Tax Ratio is 44:56

    Inequitable and hence Regressive

    Non-Productive

    Uncertain

    Inelastic

    Uneconomical

    Complex nature of taxes

    Tax laws open for interpretation

    Show

    Show

    Show

    Show

    Show

    Show

    Show

    Show

    Statistics

    How should it be Show

    A th K ti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Currency Denomination

    CountryPer Capita

    IncomeHighest

    DenominationPer Capita Income /

    Highest Denomination

    USA

    UK

    Japan

    India

    $ 40,000

    20,000

    40,00,000

    Rs. 46,000

    $ 100

    50

    10,000

    Rs. 1,000

    400

    400

    400

    46

    Currency Denomination Distribution

    A th K ti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Credit

    Establishment

    Less Use ofBanking SystemObstructs Credit

    Registration of a lotof Citizens in theNational Economy

    A th K ti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Cash Transactions will not attract any tax

    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 appropriatepercentage 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 likeCentral, 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)

    Government should make legal provisions to restrict cash transactions up to a certainlimit (say Rs. 2,000)

    This means, Cash Transactions above this limit will NOT enjoy any legal protection.

    A th K ti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of ArthaKranti Proposal

    Bank Transaction Tax

    (Say 2%)

    High DenominationCurrency is Removed(Say above Rs. 50)

    Legal Provision MadeRestricting Cash Transactions

    up to a Certain Limit(Say Rs. 2000)

    Existing Cash

    Deposited in Banks &Attracts BTT

    High Value CashTransactionsNot Practical

    Increase inBanking

    Transactions

    Tax RevenueIncreases by Orders

    of Magnitude

    AdequateRevenue to Govt.

    AdequateRevenue toGovernment

    Show

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of ArthaKranti Proposal

    Tax Collectionis Simplified

    Opportunitiesfor Corruption

    Eliminated

    Black MoneyEliminated

    Anti-Social and Anti-National Elements

    Effectively Checked

    Fake CurrencyEliminated

    Anti-Social and Anti-National Elements

    Effectively Checked

    AdequateRevenue toGovernment

    Bank Transaction Tax

    (Say 2%)

    High DenominationCurrency is Removed(Say above Rs. 50)

    Legal Provision MadeRestricting Cash Transactions

    up to a Certain Limit(Say Rs. 2000)

    Existing CashDeposited in Banks &

    Attracts BTT

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of ArthaKranti Proposal

    Increase inBanking

    Transactions

    Part of BTTgoes to Banks

    Net BankingRevenueIncreases

    GloballyCompetitive

    Interest Rates

    Cheap and EasyCapital

    PurchasingPower of Society

    Increased

    Market DemandBoosted

    Industry Trade,Supply

    Stimulated

    Anti-Social and Anti-National Elements

    Effectively Checked

    AdequateRevenue toGovernment

    IndustryTrade, Supply

    Stimulated

    Bank Transaction Tax

    (Say 2%)

    High DenominationCurrency is Removed

    (Say above Rs. 50)

    Legal Provision MadeRestricting Cash Transactions

    up to a Certain Limit(Say Rs. 2000)

    Existing CashDeposited in Banks &

    Attracts BTT

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of ArthaKranti Proposal

    Commodities andServices are FREEDfrom Tax Influence

    PricesDrop

    Focus Shifted toInnovation fromTax Manipulation

    Industry Trade,Supply

    Stimulated

    Cheap and EasyCapital

    PurchasingPower of Society

    Increases

    Market DemandBoosted

    Anti-social and anti-national elements

    effectively checked

    Anti-Social and Anti-National Elements

    Effectively Checked

    AdequateRevenue toGovernment

    IndustryTrade, Supply

    Stimulated

    Show

    Bank Transaction Tax

    (Say 2%)

    High DenominationCurrency is Removed

    (Say above Rs. 50)

    Legal Provision MadeRestricting Cash Transactions

    up to a Certain Limit(Say Rs. 2000)

    Existing CashDeposited in Banks &

    Attracts BTT

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of ArthaKranti Proposal

    Black Money isConverted intoWhite

    Tax RevenueIncreases by Ordersof Magnitude

    SLRRevised

    Money SupplyRegulated

    Industry Trade,Supply

    Stimulated

    AdequateRevenue to

    Govt.

    Anti-Social and Anti-National Elements

    Effectively Checked

    AdequateRevenue toGovernment

    IndustryTrade, Supply

    Stimulated

    Bank Transaction Tax

    (Say 2%)

    High DenominationCurrency is Removed

    (Say above Rs. 50)

    Legal Provision MadeRestricting Cash Transactions

    up to a Certain Limit(Say Rs. 2000)

    Existing CashDeposited in Banks &

    Attracts BTT

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of ArthaKranti Proposal

    AdequateRevenue to Govt.

    Industry Trade,Supply

    Stimulated

    Anti-Social and Anti-National Elements

    Effectively Checked

    FiscalDeficit

    Recovered

    Govt. DebtsChecked

    Empowered

    Government

    Appropriatesubsidies

    GloballyCompetent

    Agro-Segment

    SocialSecurityRestored

    EmploymentOpportunities

    BudgetaryProvision for

    Political System

    Cleansed

    Political System

    Black Money

    Eliminated

    Effective

    Governance

    Bank Transaction Tax

    (Say 2%)

    High DenominationCurrency is Removed

    (Say above Rs. 50)

    Legal Provision MadeRestricting Cash Transactions

    up to a Certain Limit(Say Rs. 2000)

    Existing CashDeposited in Banks &

    Attracts BTT

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Revenue forBanking

    Cheap and EasyCredit

    Availability

    DecentralizedRevenue

    Collection System

    Elimination ofBlack Money

    Social SecurityScheme

    Tax BurdenReduced with BTT

    BudgetaryProvision for

    Political System

    Elimination ofMeans & Motives

    for Corruption

    AdequateRevenue to runGovt. Programs

    EMPOWEREDINDIA

    Creativity FREEDfrom Tax

    Manipulation

    BuildingIndividualsCredibility

    Industry,Trade, Supply

    Stimulated

    Anti-Social and Anti-National Elements

    Effectively Checked

    IncreasedPurchasing

    Power

    Bank Transaction Tax

    (Say 2%)

    High DenominationCurrency is Removed

    (Say above Rs. 50)

    Legal Provision MadeRestricting Cash Transactions

    up to a Certain Limit(Say Rs. 2000)

    Existing CashDeposited in Banks &

    Attracts BTT

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Jai Hind

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Back

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    BackDistribution of Central GovernmentsDirect & Indirect Tax Revenues

    0

    100000

    200000

    300000

    400000

    500000

    Direct Indirect

    All f igures in Rupees Crores

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    BackDistribution of State GovernmentsDirect & Indirect Tax Revenues

    0

    100000

    200000

    300000

    400000

    500000

    Direct Indirect

    All f igures in Rupees Crores

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    BackDistribution of Central & State GovernmentsCombined Direct & Indirect Tax Revenues

    0

    100000

    200000

    300000

    400000

    500000

    600000

    700000

    800000

    Direct Indirect

    All f igures in Rupees Crores

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    BackDistribution of Centre & State GovernmentsCombined Direct & Indirect Tax Revenues for the Year 2010-2011

    44%

    56%

    Direct

    Indirect

    ArthaKranti

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Back

    ArthaKranti

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    A design towards Principled, Prosperous& Peacefulliving Home

    Back

    Highest Three Denominations account for 95 % of the Total Currency Money

    while 37 % of our Population is below Poverty Line with Poverty Line = Rs. 20/-

    ArthaKranti

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    A design towards Principled, Prosperous& Peacefulliving Home

    Note: Absence of Denominations Larger Than $ 100 in U. S. and the fact thatconsiderable part of the U. S. Currency in $ 100 and $ 50 Bills is in use outside U. S.

    it being an International Currency.

    Comparison of Currency Denomination Distribution: Indian Rupee& U. S. Dollar

    Back

    ArthaKranti

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    A design towards Principled, Prosperous& Peacefulliving Home

    Banks PrimaryDeposits

    Cash Reserves Loans / DerivateDeposits

    Credit Expansion through Banking System

    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 Deposit2 - Original Excess Reserves

    3 - Total Capital Formation through Credit Expansion with Original Primary Deposit of Rs. 2000

    ArthaKranti

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    A design towards Principled, Prosperous& Peacefulliving Home

    Product MFG Cost Taxes

    Analysis of Commodity Prices

    CementBag

    90 ~ 160

    Motor

    bike21,000 21,000

    Petrol 35 / liter 38 / liter

    Back

    All figures in rupees

    Sales Price

    ~ 250

    42,000

    73 / liter

    Chinese Cost

    72

    25,000

    -

    Diesel 25 / liter 20 / liter 45 / liter -

    ArthaKranti

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    A design towards Principled, Prosperous& Peacefulliving Home

    Sample Calculations

    Narrow Money (Transaction Money)(M1) = Currency Money + Demand Deposits

    For year 2010-2011Currency Money = 9,50,000Demand Deposits = 7,18,000Narrow Money (M1) = 16,68,000

    Assuming 20 % of M1 to be active in Daily Bank Transactions,

    Amount of Money in Daily Bank Transactions (D1) = 3,33,600Amount of money in Yearly Bank Transactions (Y1)= D1*365 = 3,33,600*365 = 12,17,64,000

    Consider Bank Transaction Tax as 2%(notional) with shares of CentralGovernment=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= 12,17,64,000 * 0.013= ~15,83,000

    Revenue of State Governments (0.6 %) = ~7,31,000Revenue of Local Governments (0.35 %) = ~4,27,000Revenue for Banks (0.35 %) = ~4,27,000

    Al l f igures in Rup ees Crores

    ArthaKranti

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    A design towards Principled, Prosperous& Peacefulliving Home

    ArthaKranti

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    A design towards Principled, Prosperous& Peacefulliving Home

    ArthaKrantid d i i l d f l l

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    A design towards Principled, Prosperous& Peacefulliving Home

    ArthaKrantiA d i t d P i i l d P & P f l li i

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    A design towards Principled, Prosperous& Peacefulliving Home

    ArthaKrantiA design towards Principled Prosperous & Peaceful living

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    A design towards Principled, Prosperous& Peacefulliving Home

    ArthaKrantiA design towards Principled Prosperous & Peaceful living

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    A design towards Principled, Prosperous& Peacefulliving Home

    ArthaKrantiA design towards Principled Prosperous & Peaceful living

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    A design towards Principled, Prosperous& Peacefulliving Home

    Dependency on FDI

    ArthaKrantiA design towards Principled Prosperous & Peaceful living

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    A design towards Principled, Prosperous& Peacefulliving Home

    Dependency on FDI

    India

    China

    ArthaKrantiA design towards Principled Prosperous & Peaceful living Home

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    A design towards Principled, Prosperous& Peacefulliving

    Back

    Al l f igures inRupees Crores

    ArthaKrantiA design towards Principled, Prosperous & Peaceful living Home

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    A design towards Principled, Prosperous& Peacefulliving

    ArthaKrantiPratishthan

    AdvertisingCampaign

    PublicPresentation

    Media Tools

    The IndianCitizen

    BusinessLeaders

    Political Leaders& Parties

    Experts

    Members ofParliament

    The ArthaKrantiDoctrine

    The CitizensCharter of Demand

    The ArthaKrantiNational Reform Bill

    Implementation

    Show ShowShow

    Media

    Show

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

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    g p , p g

    Implementation of ArthaKranti proposal. Its Effects areEnough revenues with government to make legal provision offunds for political systemHigh valued cash transactions difficultIncrease the use of the banking systemEffective taxation system leading to eradication of black money.

    Provision for funding of the political systemFunding of the political parties based on a per person amount forthe entire population for a five year period. Say Rs. 100/personTotal population is to be considered while making this provisionThe actual fund availability will be in proportion to the actual

    voting percentageThis funding will be available only to Registered political partiessecuring 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

    Empowering Democracy

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

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    g p , p g

    Empowering DemocracyCalculations

    At the Central Level:Total provision for the entire population for the period of 5 years -

    121 Cr. * 100 (per Person Amount) = Rs. 12,100 Cr.Provision per year Rs. 2,420 Cr.

    The total Amount available in proportion to a total valid votes percentage -

    Say 60%Amount available for 5 year period = 12,100 * 60/100 = 7,260 Cr.

    At the State Level:State population say 10 CroresFunds provision for 5 year period = 10 Cr. * Rs. 100 = Rs. 1,000 Cr.

    At the Local level:Population of the urban areas is say, 10 LakhFunds provision for 5 year period = 10 L * Rs. 100 = Rs. 10 Cr.

    Actual funding will depend upon the total percentage of votes cast.

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    Empowering DemocracyAllowance 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 Cr. against a projectedrevenue of ~Rs. 7,46,651 Cr. = ~0.13 % of the revenue

    - At the state level (e.g. Maharashtra) 366*5L*12 = ~Rs. 220 Cr. against a projected revenue of~Rs. 50,000 Cr. = 0.44 % of the revenue

    - At the local corporation level (e.g. Aurangabad)100*1,00,000*12 = Rs. 12 Cr. against a revenue of ~Rs. 250 Cr.

    = 4.8 % of the revenue

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    Eradicationof Black

    Money

    Appropriateremuneration for

    elected representatives

    at all levels

    Legal provision of fundsfor politics at all levels

    Provision of fundingfor political parties

    based on population

    Effective funding availablefor political parties depends

    upon voting percentage

    Funding to politicalparties based on the

    percentage of votes won

    Decreased dependence oncorruption and criminals

    Assuredclean

    funding

    Transparencyin politics

    Dignity & publictrust restored

    Politicsprofessionalized

    as the qualified peoplewill take it up

    Decreases ill-influence

    of local partiesin national politics

    Political parties

    interestedin increasing voting

    Politics focused on realissues

    and national interests

    Increasedstability of

    government

    Improvedfunctioning anddecision making

    Increased lawand order

    Improvedgovernance

    Empoweringdemocracy

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

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    Jai Hind

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

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    A Social security identification (SSID) is issued to every Indian Citizen.

    To begin with the beneficiaries of the Social Security Allowance Scheme will be alladult citizens of India beneath the poverty line.

    For every deserving adult, a fixed amount (linked to DA), Social SecurityAllowance, 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 paythe Social Security Allowance to the deserving citizens

    All Social security allowance beneficiaries can get credit of Rs. 50,000/- (upperlimit) 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

    Social Security Proposal

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

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    Social Security ProposalCalculations

    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 Cr

    Total monthly expenditure = Rs. 2,000 * 30 Cr = Rs. 60,000 Cr

    Total yearly expenditure = Rs. 60,000 Cr * 12 = Rs. 7,20,000 Cr

    Excluding current expenditure of Government over subsidies of -Rs. 1,50,000 Cr, additional yearly expenditure will be -

    7,20,000 - 1,50,000 = Rs. 5,70,000 Cr

    Considering current national income of Rs. 40,00,000 Cr, this additionalexpenditure would be ~15% of national income

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    SSA beneficiaries willnot have right on

    income from hereditary

    property

    Bank accountfor SSA

    (associated

    with SS Code)

    SSA cant beused as

    security for any

    other loan

    Unique SScode for

    every

    citizen

    Maximum CreditLimit

    For SSA beneficiaries

    up to say, Rs. 50,000

    Withdrawal ofNon-meritsubsidies

    (Central and State)

    Social Security Allowance

    (Say Rs. 2,000 monthly)(linked to DA)(Food, clothing, shelter,

    health insurance)

    Saved Gov. RevenueExpenditure

    Effectiveimplementationof child welfarelaws & schemes

    Increase inPurchasing

    power of thepoor people

    Increaseduse of

    Bankingsystem

    Creditavailable

    to the poor

    Credit / Capitalexpansion

    in the banking systemas a whole

    Opportunities ofCorruption are

    reduced (PDS, fueletc.)

    Pricedistortionremoved

    Assureddignified

    existence forevery citizen

    Hugely increaseddemand

    for goods andservices

    (Necessities)

    Establishmentof Individual

    credibilitywith bank

    Increased Business/ Employmentopportunities

    locally

    Farmerssuicidechecked

    Decreased SocialUnrest (reduced

    Naxalism, terrorism,extremism, etc.)

    BalancedDevelopment

    (Rural andUrban)

    Disseminationof Population

    Socialsecurity

    Market drivenquality supply

    of goods &services

    Improvedquality of life

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    Jai Hind

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    Back

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    B k

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    B k

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Back

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    BackGovernment Officials

    H.E. Smt. Pratibhatai Patil,Hon. President of India

    (Personal meeting twice)

    Dr. Montek Singh Ahluwalia,Deputy Chairman, Planning

    Commission (Book)

    Dr. Bhalchandra Mungekar,Member, Planning Commission

    (Presentation)

    Dr. Parthasarathy Shome,Ex-Chief Economic Advisor to

    the Union Finance Minister

    (Presentation North Block)

    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 )

    Mr. Sangith Rao -Principal Secretary, Maharashtra (Presentation To CM, Maharashtra )

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    i &Back

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    Economists & Experts

    Dr. D. R. Pendse Dr. Narendra Jadhav M N Chaini

    Chandrahas Deshpande

    Sunil Bhandare

    Jairaj Salgaonkar

    V. M. Govilkar

    Back

    P B SawantJusticeSupreme Court

    R A Mashelkar

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    P liti l L d CBack

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    Political Leaders Congress

    Manmohan Singh,

    Hon. Prime Minister(Book)

    P. Chidambaram

    Union Finance Minister(Book)

    Sushil Kumar Shinde,

    Union Power Minister

    Pawan Kumar Bansal,

    Minister of State for

    Finance (Presentation)

    Prithviraj ChavanMOS, PMOs Office

    (Meeting)

    Vilasrao Deshmukh,

    CM, Maharashtra(Presentation)

    V George

    P.A. to Smt Sonia Gandhi (Presentation)

    Back

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    P liti l L d BJPBack

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    Political Leaders BJP

    LK Advani Bhairon Singh

    Shekhawat

    Yashwant Sinha Arun Shourie Sushma Swaraj

    Balbir Punj SS Ahluwalia Rajeev

    Chandrashekhar

    Nitin GadkariGopinath Munde

    Sompal Shastri Vinay

    Sahasrabuddhe

    Sudheendra

    Kulkarni

    Back

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Political Leaders Shiv SenaBack

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    Political Leaders Shiv Sena

    Mohan Rawle Suresh Prabhu

    Political leaders MNS

    Raj Thackeray Rajan Shirodkar

    Shweta Paralkar

    Shishir Shinde

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    Political Leaders NCPBack

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    Political Leaders NCP

    Sharad Pawar Jayant Patil

    Political leaders CPI

    D Raja

    Dr. Kango

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    IndustrialistsBack

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    Industrialists

    Deepak Ghaisas

    I-Flex solutionsNarayan Murthy

    Infosys

    Arvind Padhye TCS Pune Center Head

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Media ExpertsBack

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    Media Experts

    Kumar KetkarLoksatta

    Raju ParulekarE TV

    Prem Shankar JhaHindustan Times

    Rajeev KhandekarStar TV

    Yamaji Malkar - Sakal

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Creative ArtistsBack

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    Creative Artists

    Vijay Tendulkar Mangesh Tendulkar Sachin Pilgaonkar Ashok Saraf

    Nina Kulkarni

    Nivedita Saraf

    Mohan Joshi Kiran Shantaram Atul Parchure Prashant Damle

    Swapnil Bandodkar

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Educational InstitutionsBack

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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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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    How we can tackle this problem?

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    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Terrorism Analysis

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    Poverty

    ReducedSocialSpending

    Unemployment ReducedPurchasingPower

    Flawed Taxation System

    Tax Evasion

    Under-utilizedBanking

    System

    InadequateMoney Supplyto Economy

    IndividualsCredibility not

    Established

    High CommodityPrices due to Heavy

    Indirect Taxes

    Deprivation fromResources and Means

    (Credit) to Acquire Them

    No Accessto Credit

    Lack ofEducation &Skills

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Terrorism Analysis

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    Loss of faith in peaceful, democratic process,no hopes of getting justice without resortingto violence

    Deprivation, Extreme

    Disparity, Envy

    PovertySocial Oppression

    (Communal / Religious /Caste / Linguistic etc.)

    Sense of Hurt, Damage to

    Self Esteem, Indignation

    Desperation Rebellious Tendency

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Physical constraints (Porous borders, Parallel economy, Corruption, Fake /

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    Loss of faith in peaceful, democratic process, no hopes of getting justice without resortingto violence

    ReligiousDogma

    Terrorism

    PerceivedHistorical injustice

    Political / Economic /Philosophical ideology

    Propaganda for masses,Indoctrination of

    individuals

    Birth of amilitant

    Public sympathy, Weak

    national Character

    Lack of clear and firmForeign (therefore,

    Defense) policy

    y ( ,unregulated coastlines)

    y, p , /high denomination currency

    Logistic support, fundingand training etc from

    hostile foreignorganizations / nations

    Systemic Administrative

    weaknesses in governanceand law enforcement

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    ArthaKranti Proposal

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

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

    Every Transaction routed through a bank will attract a certain deduction in appropriatepercentage 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 likeCentral, 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

    Government should make legal provisions to restrict cash transactions up to a certainlimit (say Rs. 2000)

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of Proposal

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    Poverty

    Reducedsocial

    spendingUnemployment Reducedpurchasing

    power

    Flawed taxation system

    Tax evasion

    Under-utilizedbanking

    system

    Inadequatemoney supplyto economy

    Individualscredibility not

    established

    High commodityprices due to heavy

    indirect taxes

    Deprivation fromresources and means

    (credit) to acquire them

    No accessto credit

    Lack ofeducation &skills

    Adequaterevenue withGovernment

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    Effects of Proposal

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    Poverty

    Unemployment Reducedpurchasingpower

    Flawed taxation system

    Tax evasion

    Under-utilizedbanking

    system

    Inadequatemoney supplyto economy

    Individualscredibility not

    established

    High commodityprices due to heavy

    indirect taxes

    Deprivation fromresources and means

    (credit) to acquire them

    No accessto credit

    NoBlackMoney

    Single pointtaxation system

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of Proposal

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    Poverty

    UnemploymentReduced

    purchasingpower

    Under-utilizedbanking

    system

    Inadequatemoney supplyto economy

    Individualscredibility not

    established

    Deprivation fromresources and means

    (credit) to acquire them

    No accessto credit

    Bankingtransactions

    increased

    Individualscredibility

    established

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of Proposal

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    Poverty

    UnemploymentReduced

    purchasingpower

    Deprivation fromresources and means

    (credit) to acquire them

    Industry, trade,supply

    stimulated

    Purchasingpower

    increased

    Cheap & easycapital

    Single pointtaxation system

    Individualscredibility

    established

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of proposal

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    Terrorism

    Birth of amilitant

    Public sympathy, Weaknational Character

    Lack of clear and firmForeign (therefore,

    Defense) policy

    Physical constraints (Porous borders,

    unregulated coastlines)

    Parallel economy, Corruption, Fake /

    high denomination currency

    Logistic support, fundingand training etc from

    hostile foreignorganizations / nations

    Systemic Administrativeweaknesses in governance

    and law enforcement

    Adequaterevenue withGovernment

    Individualscredibility

    established

    Single pointtaxationsystem

    NoBlackMoney

    Purchasingpower

    increased

    Poverty

    Industry,trade, supply

    stimulated

    ArthaKrantiA design towards Principled, Prosperous& Peacefulliving Home

    Effects of Proposal

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    Terrorism

    Birth of amilitant

    Public sympathy, Weaknational Character

    Lack of clear and firmForeign (therefore,

    Defense) policy

    Physical constraints (Porous borders,

    unregulated coastlines)

    Parallel economy, Corruption, Fake /

    high denomination currency

    Logistic support, fundingand training etc from

    hostile foreignorganizations / nations

    Systemic Administrativeweaknesses in governance

    and law enforcement

    Adequaterevenue withGovernment

    Individualscredibility

    established

    Single pointtaxationsystem

    NoBlackMoney

    Purchasingpower

    increased

    SocialSecurity

    Industry,trade, supply

    stimulated

    EmpoweredGovernment

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    Jai Hind