Sunday, March 06, 2011

After seeing the details we realise what a disaster this year's budget is likely to be. It promises to lower deficit to 4.6% while maintaining growth at 9%. But how? Oil is over $100 a barrel and is likely to stay there. Any attempt to pass the cost on to customers will cause hyperinflation. Excise duty on medicines has been increased by 1%, service tax imposed on lab investigations and on hospitals with 25 air conditioned beds. Health insurance is already taxed. Cancer therapy, coronary bypass or kidney dialysis can not be offered in a rural health center. One can avoid paying tax by not eating in a restaurant or seeing a movie in a multiplex but a sick person has no choice but to be admitted to the nearest center offering life saving therapy. To tax such helpless, vulnerable people is nothing less than crime against humanity. At least Qaddafi's opponents have the option of running away from his bombs but we Indians have no such option - pay tax or die. Social spending is set to rise to Rs. 1.4 trillion. This is a bottom less pit and the economy cannot afford to go on paying uncontrolled increase in the numbers of the poor. There has to be a cut off date. Only those born before, say, April 1, 1993, that is those above the age of 18 years will hence forth receive subsidies. Anyone born after this date will get help if they have no children, 90% if they have one girl child and 70% if they have one boy child. Anyone with more than one child gets nothing. Every child will grow up with this knowledge and birth rate will drop. Other countries have economists who provide truthful analysis, we only have foot licking chamchas. That is our greatest tragedy.

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