How do you square the circle.

When people become poorer they cut non-essential expenses such as holidays, especially involving air travel.  Numbers of people travelling by air has fallen sharply all over India. Gujarat is one of the states with the highest growth rates and Gujaratis have large numbers of relatives living abroad. Data from the Airport Authority of India reveals that numbers of passengers dropped by 17.2% between April and November 2012 at international airports in Gujarat. TOI, 6 February. Delhi had a drop of 10% in the same period while Mumbai saw a drop of 7.3%. In October of last year Sardar Vallabhbhai Patel International Airport in Ahmedabad, Gujarat saw a massive drop of 32% in the number of passengers while in the month of November the decline was 18% as compared to November 2011. Gujaratis celebrate new year after Diwali and everything is closed for at least 3 days when people like to visit relatives. However, in November number of tourists was 297,000 as compared to 365,000 in 2011. Domestic travel rose 35% at Ahmedabad in 2011 but has fallen 17% this year. Officials say that number of passengers has fallen because of the steep increase in fares which was because of the failure of Kingfisher Airlines, reducing competition and allowing other airlines to increase fares, and also because of extortionate taxes. Kingfisher was deliberately pushed into bankruptcy for a debt of Rs 40 billion while the highly corrupt Air India. with a debt of over Rs 400 billion, is being rescued by injecting taxpayer money. While banks are looking to restructure debt of Rs 840 billion in 126 companies last year Vijay Mallya was forced to sell controlling interest in Untied Breweries, the largest drinks maker in India, to a foreign company, Diageo. Why is the government killing the airlines with such taxes? One reason is that it increases the price difference between airfares and first class train fares which has allowed the government to increase train fares without the fear of losing passengers. The second reason is to cover wasteful spending of our money. So dire is the situation that the government has had to slash spending, called Gross Budgetary Support, by 20% in 2012-13 from Rs 5.21 trillion to Rs 4.16 trillion and wants to reduce it even further in 2013-14. HT, 31 January. The GBS has been reduced by Rs 200 billion for the Rural Development Ministry, by Rs 100 billion for the Defence Ministry, by Rs 100 billion for the HRD Ministry and by Rs 50 billion for the Women and Child Development Ministry. This means that all the ministers and civil servants will be sitting around in there air conditioned offices and drawing their huge salaries, with perks, while doing nothing. Trouble is that the less people spend the less taxes they get which makes the situation worse. How to square the circle?