Monday, November 03, 2025

One more mystery.

"An exit charge for wealthy Britons leaving the country and increased levies on expensive homes are on a long list of possible tax increases being considered by Chancellor of the Exchequer Rachel Reeves ahead of the Budget. Treasury officials have drawn up options for dozens of hikes to help Reeves fill a hole of as much as 35 billion pounds ($46 billion) on Nov. 26, only some of which she will eventually proceed with." Bloomberg. Reeves is "considering changes to the tax system which would lead to some lawyers, accountants and doctors, paying more." "Some analysts have estimated Reeves will have to raise taxes or cut spending by around 20bn pounds ($26.254bn)" "to get government debt falling as a share of national income by 2029-30, and day-to-day government costs must be paid for by government income rather than by government borrowing.' BBC. "In the last full financial year to March 2025, the government borrowed 149.5 billion pounds ($196.235 billion)." "The total amount the government owes is called the national debt. It is currently about 2.9 trillion pounds ($3.8 trillion)." "That is roughly the same value of all the goods and services produced in the UK, known as the gross domestic product, or GDP." BBC. India's nominal GDP, or GDP at current prices, was $3.912 trillion in 2024. World Bank. "As of early 2025, the current total debt of India is estimated to be around Rs 181.68 trillion (approximately$2.091 trillion), encompassing both internal and external debts." cleartax.in. The UK has a defined list of welfare schemes, including pensions, the National Health Service, state education, social housing and child-care services. BBC. India, on the other hand, has a plethora of subsidies and cash transfers. wikipedia. In Britain, the National Health Service is for everyone, rich and poor. The government health service in India is so overcrowded that even poor people seek private hospital care. However, the Indian government has started an Ayushman scheme to provide medical insurance to poor and old people for treatment in private hospitals. "As of Oct. 28, 2025, more than 420 million Ayushman cards have been issued for AB-PMJAY beneficiaries," including 8.6 million senior citizens. The scheme provides up to Rs 500,000 for hospital treatment. pib.gov.in. So, although India provides a limited medical cover to a selected population, at 420 million, the number of beneficiaries is 6 times the entire population of the UK, at about 70 million. (worldometer). In 2021-22, "the UK had a total income tax receipt of 225bn pounds ($295.22 billion), with contributions from some 33m taxpayers." BBC. In 2024-25, India collected Rs 13 trillion (about $146.8 billion). cleartax.in. In 2023-24, 75.4 million Indians filed income tax returns, of which 47.3 million paid zero income tax and just 28.1 million actually paid some tax. NDTV. So, income tax receipts of the UK government is more than double that collected by India, yet the British Chancellor is thinking of increasing taxes and cutting spending, whereas the Budget 2025 in India increased income tax exemption to Rs 1.275 million (pib.gov.in), the goods and services tax (GST) rates were reduced on a range of items in September (static.pib.gov.in) and Prime Minister Narendra Modi is distributing Rs 10,000 to 7.5 million women in Bihar, for a total of Rs 75 billion (pib.gov.in), to encourage them to vote for his party. How can the Indian government be so generous with less money? We have many mysteries? This is just one more.         

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