Monday, April 06, 2015

Put your money where your mouth is.

An article analysing the Prime Minister exhorting the people of India to voluntarily give up their gas subsidies starts with the stirring words of John Kennedy," Ask not what your country can do for you; ask what you can do for your country." This is called ' voluntarism ' which depends on the principle off " the greatest good of the greatest number ". The author finds 3 reasons for our reluctance to give up gas subsidies: " First, decades of governmental paternalism have made large-scale civic contribution and sacrifice an unknown habit. Second, everyone is looking at his neighbour to make the choice first. And last but not the least, they do not trust the government enough to use the proceeds in the intended way." Let us examine the 3 points raised by the author. Is there a real subsidy on gas? When international oil prices were around $115 a barrel we were told that petrol was being subsidised for our benefit. At that time we asked many times as to why petrol was so much cheaper in the US, where there is no subsidy, than it was in India. Turns out that the government was earning far more from taxes than it was dishing out in subsidies. Surely, the same could be true of gas? Secondly, we Indians know that whatever starts as ' voluntarism ' ends up being forced. This was the same with ration cards. Previously everyone was entitled to cheap sugar and cereals from ration shops. We have been forced to give up our cards whereas people with Below-Poverty-Line cards have seen their entitlements increased under the Food Security Act. Same with PAN card and Aadhaar cards, which started as voluntary but have now become compulsory. Already banks have been asked to force their staff to give up their gas subsidies so how long before all of us are also forced. Why hurry? As for trusting our politicians we surely have the right to ask the same question of them. What will they sacrifice for the country? How many of the freebies they get are they willing to give up? If all politicians give up just 25% of all their perks it will save billions. Leaders should lead, we follow. Politicians should think whether their sermons are practical. Our Finance Minister wants us to use credit cards to check black money. Trouble is that petrol pumps and The Railways charge 2% more if we pay by credit cards. Who owns them? The government. It apparently costs $3.5 billion per year to replace damaged bank notes. We start paying tax on income exceeding Rs 250,000 in one financial year. In the UK income tax is levied on income over 10,600 pounds a year, which amounts to Rs 1 million. Electricians and plumbers earn more than Rs 30,000 per month. Will they accept payment by credit cards which will bring them under scrutiny by the income tax fellows. Indian politicians need to be honest and honorable. Voluntarism will follow. Put your money where your mouth is, as they say.

1 comment:

Jee main result said...

thanks for sharing i like this and i learned a lot..... It's a good piece of information.

Jee mains result |

Jee main result