ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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e

Wednesday, March 11, 2015

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Animations

Presentation

Hom
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Statistics

Vision
Social Reality
Economic Reality
Current Reality Loops
Local Industry

Vision

Social Reality

Economic
Reality

FDI

Credit
Expansion

Credit
Establishment

Bank Money

Direct &
Indirect tax

Proposal

Appeal

Revenue after
BTT

Commodity
Prices

Currency
Calculations Denomination

Credit Cycle
Internal Borrowings
Banking System
Disinvestment
Anti-Social Industries
High Denomination Currency
Farmers Suicides

Proposal
Effects of Proposal
Strategy
Appeal

Flawed Taxation
System

Linked Proposals
Empowering Democracy
Social Security Scheme
Terrorism Analysis

Proposed
System

Strategy

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Vision

Vasudhaiv
Kutumbakam

Capital
Formation

One
Economy

Revenue for
Effective
Governance

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Economic Reality
Complex
Taxation
system
Interest on
External Debt

Cost of
running Government

National Security

Infrastructure, Agriculture,
Needs of Common man

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Effects of Fiscal Deficit on Local Industry

Poor
Infrastructure

Unemployment

Social
Insecurities

Uncompetitive
Local Industry /
Trade

Reduced Rural
Purchasing
Power

Policies
Influenced by
Foreign Interests

Local Agriculture
Rendered
Uncompetitive

Attract FDI

Subsidies
Curbed

Fiscal Deficit

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Effects of Fiscal Deficit on Credit Cycle & Government Revenue

Unemployment

Uncompetitive
Local Industry /
Trade

Social
Insecurities

Inflation

Deficit
Budget

Fiscal
Deficit

Hard Credit
Policy
Purchasing
Power
Reduced

Conservative
Lending

Inadequate
Tax Revenue
to Govt.

NPAs
Increase
Inadequate
Capital Supply to
Economy

Low Demand
/ Recession

GDP Growth
Slows Down

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Effects of Internal Borrowings on Fiscal Deficit

Internal
Borrowings

Spent on NonDevelopmental
Activities

Fiscal
Deficit

Inadequate Tax
Revenue to Govt.

GDP Growth
Slows Down

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Effects of Fiscal Policy & External Borrowings
on Credit Policy & Banking System

Threat to Local
Banking System

National Policies
Influenced

Fiscal
Deficit

Expensive
Capital

Lending Rates
Increase

External
Borrowings

Bank Interest
Rates
Increase

Tax Rebate + High

Interest Rates on
Savings

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Effects of Fiscal Deficit on Disinvestment Policies & Reduced Social Spending

Fiscal
Deficit

Reduced Social
Spending

Public - Private
Partnership
e.g. Toll

Cost Burden
Passed onto
Common Man

Purchasing
Power Reduced

Pressure to
Disinvestment

Threat to
Organized
Employment

Govt. Control Lost in

Essential
Commodities [e.g.
Oil, Medicines etc.]

Scope for Market

Exploitation

Severe Impact on
Weaker Sections

Social
Insecurities

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Effects of Fiscal Deficit on Anti-Social Industries

Increased Congestion,
Accidents, Pollution

Direct Ill
Effects on
Public Health

Promoting Increased
use of Oil
Automobiles

Increase in oil
Import Losses
(Subsidies)

Fiscal
Deficit

Social
Insecurities

Lack of
infrastructure /
public amenities
(e.g. public transport
system)

Promotion of
Liquor, Gutkha,
Cigarettes

Inadvertent Promotion of
Anti-Social Industries

Promotion of
State Run Lottery
Schemes

ArthaKranti

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A design towards Principled, Prosperous & Peaceful living

Effects on Taxation System & High Denomination Currency

Uncompetitive
Local
Industry /
Trade

GDP Growth
Slows Down

Inadequate
Capital
Supply to
Economy

Poor Credit /
Capital
Formation

High
Input
Costs

Expensive
Capital

Social
Insecurities
Fiscal
Deficit

Poor
Governance

Inadequate Tax
Revenue to Govt.

Parallel
Economy

Tinkering of
Taxation System

Black
Money

Non Traceable
Transactions

Flawed Taxation
System

Tax
Evasion

Ease of Cash
Transactions

Less Use
of Banking
System

Large
Denomination
Notes

Corruption

Inflation

Fiscal
Deficit

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Effects of Fiscal Deficit on Credit Cycle & Farmers Suicides

Farmers
Suicides

Social Unrest

Unjust Borrowings
from Private Sources

Inflation

Low Credit Supply

to Agriculture

Hard Credit
Policy

Individuals Credibility
NOT Established

Deficit
Budget

Fiscal
Deficit

Poor Credit /
Capital Formation

Less Use of
Banking System

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Flawed Taxation System

Narrow Base and Limited Coverage of Direct Taxation
Direct to Indirect Tax Ratio is 44:56 Show
Inequitable and hence Regressive Show
Non-Productive
Uncertain
Inelastic

Show

Show
Show

Uneconomical

Show

Complex nature of taxes

Show

Tax laws open for interpretation

How should it be

Show

Show

Statistics

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Currency Denomination

Country

Per Capita
Income

Highest
Denomination

USA

$ 40,000

$ 100

400

UK

20,000

50

400

Japan

40,00,000

10,000

400

India

Rs. 46,000

Rs. 1,000

46

Currency Denomination Distribution

Per Capita Income /

Highest Denomination

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Credit
Establishment

Less Use of
Banking System
Obstructs Credit
Registration of a lot
of Citizens in the
National Economy

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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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 appropriate
percentage 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 like
Central, 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
Withdrawal of High Denomination Currency (say above Rs. 50)
Government should make legal provisions to restrict cash transactions up to a certain
limit (say Rs. 2,000)
This means, Cash Transactions above this limit will NOT enjoy any legal protection.

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Effects of ArthaKranti Proposal

Tax Revenue
Increases by Orders
of Magnitude

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Adequate
Revenue to
Government

Adequate
Revenue to Govt.

Show

Increase in
Banking
Transactions

High Value Cash

Transactions
Not Practical

Bank Transaction Tax

(Say 2%)

High Denomination
Currency is Removed
(Say above Rs. 50)

Legal Provision Made

Restricting Cash Transactions
up to a Certain Limit
(Say Rs. 2000)

Existing Cash
Deposited in Banks &
Attracts BTT

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Effects of ArthaKranti Proposal

Black Money
Eliminated

Adequate
Revenue to
Government

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Anti-Social and AntiNational Elements

Effectively Checked

Anti-Social and AntiNational Elements

Effectively Checked

Opportunities
for Corruption
Eliminated

Tax Collection
is Simplified

Bank Transaction Tax

(Say 2%)

Fake Currency
Eliminated

High Denomination
Currency is Removed
(Say above Rs. 50)

Legal Provision Made

Restricting Cash Transactions
up to a Certain Limit
(Say Rs. 2000)

Existing Cash
Deposited in Banks &
Attracts BTT

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Effects of ArthaKranti Proposal

Industry Trade,
Supply
Stimulated

Adequate
Revenue to
Government

Market Demand
Boosted

Increase in
Banking
Transactions

Part of BTT
goes to Banks

Bank Transaction Tax

(Say 2%)

Anti-Social and AntiNational Elements

Effectively Checked

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Industry
Trade, Supply
Stimulated

Purchasing
Power of
Society
Increased
Cheap and Easy
Capital

Net Banking
Revenue
Increases

High Denomination
Currency is Removed
(Say above Rs. 50)

Globally
Competitive
Interest Rates
Legal Provision Made
Restricting Cash Transactions
up to a Certain Limit
(Say Rs. 2000)

Existing Cash
Deposited in Banks &
Attracts BTT

ArthaKranti

Hom
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A design towards Principled, Prosperous & Peaceful living

Effects of ArthaKranti Proposal

Cheap and Easy

Capital

Prices
Drop

Show

Commodities and
Services are FREED
from Tax Influence

Bank Transaction Tax

(Say 2%)

Adequate
Revenue to
Government

Anti-Social and AntiNational Elements

Effectively Checked

Anti-social and antiIndustry

national
elements
Trade, checked
Supply
effectively

Stimulated

Purchasing
Power of Society
Increases

Market Demand
Boosted

Focus Shifted to
Innovation from
Tax Manipulation

High Denomination
Currency is Removed
(Say above Rs. 50)

Industry Trade,
Supply
Stimulated

Legal Provision Made

Restricting Cash Transactions
up to a Certain Limit
(Say Rs. 2000)

Existing Cash
Deposited in Banks &
Attracts BTT

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Effects of ArthaKranti Proposal

Adequate
Revenue to
Government

Industry Trade,
Supply
Stimulated

Industry
Trade, Supply
Stimulated

Money Supply
Regulated

SLR
Revised

Adequate
Revenue to
Govt.
Tax Revenue
Increases by Orders
of Magnitude

Bank Transaction Tax

(Say 2%)

Anti-Social and AntiNational Elements

Effectively Checked

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Black Money is
Converted into
White

High Denomination
Currency is Removed
(Say above Rs. 50)

Legal Provision Made

Restricting Cash Transactions
up to a Certain Limit
(Say Rs. 2000)

Existing Cash
Deposited in Banks &
Attracts BTT

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Effects of ArthaKranti Proposal

Social
Security
Restored

Anti-Social and AntiNational Elements

Effectively Checked

Empowered
Government

Govt. Debts
Checked

Effective
Governance

Industry Trade,
Supply
Stimulated

Employment
Opportunities

Cleansed
Political System

Black Money
Eliminated

Budgetary
Provision for
Political System

Fiscal
Deficit
Recovered

Adequate
Revenue to Govt.

Bank Transaction Tax

(Say 2%)

High Denomination
Currency is Removed
(Say above Rs. 50)

Legal Provision Made

Restricting Cash Transactions
up to a Certain Limit
(Say Rs. 2000)

Globally
Competent
Agro-Segment

Appropriate
subsidies

Existing Cash
Deposited in Banks &
Attracts BTT

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Increased
Purchasing
Power
Building
Individuals
Credibility
Cheap and Easy
Credit
Availability

Anti-Social and AntiNational Elements

Effectively Checked

Decentralized
Revenue
Collection System

EMPOWERED
INDIA

Revenue for
Banking
Budgetary
Provision for
Political System

Bank Transaction Tax

(Say 2%)

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Elimination of
Black Money

Social Security
Scheme
Industry,
Trade, Supply
Stimulated
Tax Burden
Reduced with BTT

Creativity FREED
from Tax
Manipulation
High Denomination
Currency is Removed
(Say above Rs. 50)

Elimination of
Means & Motives
for Corruption

Adequate
Revenue to run
Govt. Programs

Legal Provision Made

Restricting Cash Transactions
up to a Certain Limit
(Say Rs. 2000)

Existing Cash
Deposited in Banks &
Attracts BTT

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Jai Hind!

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Back

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Distribution of Central Governments

Direct & Indirect Tax Revenues

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All figures in Rupees Crores

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Distribution of State Governments

Direct & Indirect Tax Revenues

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All figures in Rupees Crores

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Distribution of Central & State Governments

Combined Direct & Indirect Tax Revenues

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All figures in Rupees Crores

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Distribution of Centre & State Governments

Combined Direct & Indirect Tax Revenues for the Year 2010-2011

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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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

A design towards Principled, Prosperous & Peaceful living

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Back

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

Note: Absence of Denominations Larger Than $ 100 in U. S. and the fact that
considerable part of the U. S. Currency in $ 100 and $ 50 Bills is in use outside U. S.
it being an International Currency.

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Credit Expansion through Banking System

Banks

Primary
Deposits

Cash Reserves

Loans / Derivate
Deposits

20001

200

18002

1800

180

1620

1620

162

1458

1458

145

1313

1313

131

1182

Eventually

20,000

2000

18,0003

1 - Original Primary Deposit

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

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ArthaKranti

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A design towards Principled, Prosperous & Peaceful living

Back

Analysis of Commodity Prices

Product

MFG Cost

Taxes

Sales Price

Chinese Cost

Cement
Bag

90

~ 160

~ 250

72

Motor
bike

21,000

21,000

42,000

25,000

Petrol

35 / liter

38 / liter

73 / liter

20 / liter

45 / liter

Diesel
All figures in rupees

25 / liter

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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

For year 2010-2011

Currency Money
= 9,50,000
Demand Deposits
= 7,18,000
Narrow Money (M1) = 16,68,000

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

Amount of Money in Daily Bank Transactions (D1) = 3,33,600
Amount 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 Central
Government=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 %) = ~7,31,000

Revenue of Local Governments (0.35 %) = ~4,27,000
Revenue for Banks (0.35 %)
= ~4,27,000
All figures in Rupees Crores

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Dependency on FDI

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Dependency on FDI

China

India

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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All figures in Rupees Crores

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

The ArthaKranti
National Reform Bill

The ArthaKranti
Doctrine

Show

Implementation

Members of
Parliament

Political Leaders
& Parties

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The Citizens
Charter of Demand

Business
Leaders

Experts

Media

Show

Show

Show

Advertising
Campaign
ArthaKranti
Pratishthan

Public
Presentation
Media Tools

The Indian
Citizen

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Empowering Democracy
Implementation of ArthaKranti proposal. Its Effects are
Enough revenues with government to make legal provision of funds
for political system
High valued cash transactions difficult
Increase the use of the banking system
Effective taxation system leading to eradication of black money.
Provision for funding of the political system
Funding of the political parties based on a per person amount for
the entire population for a five year period. Say Rs. 100/person
Total population is to be considered while making this provision
The actual fund availability will be in proportion to the actual voting
percentage
This funding will be available only to Registered political parties
securing 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

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Empowering Democracy
Calculations

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Back

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 Crores
Funds 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 Lakh
Funds provision for 5 year period = 10 L * Rs. 100 = Rs. 10 Cr.
Actual funding will depend upon the total percentage of votes cast.

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Empowering Democracy
Allowance for Elected Representatives

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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 projected
revenue 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

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Empowering
democracy

Improved
governance
Increased law
and order

Politics
professionalized
as the qualified people
will take it up

Improved
functioning and
decision making

Increased
stability of
government

Decreases ill-influence
Dignity & public
trust restored

of local parties
in national politics

corruption and criminals

Eradication
of Black
Money

Assured
clean
funding

Appropriate
remuneration for
elected representatives
at all levels

Politics focused on real

issues
and national interests

Political parties
interested
in increasing voting

Funding to political
parties based on the
percentage of votes won

Transparency
in politics

Decreased dependence on

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Effective funding available

for political parties depends
upon voting percentage

Legal provision of funds

for politics at all levels

Provision of funding
for political parties
based on population

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Jai Hind!

Hom
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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
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Social Security Proposal

A Social security identification (SSID) is issued to every Indian Citizen.
To begin with the beneficiaries of the Social Security Allowance Scheme will be all
adult citizens of India beneath the poverty line.
For every deserving adult, a fixed amount (linked to DA), Social Security
Allowance, 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 pay
the Social Security Allowance to the deserving citizens
All Social security allowance beneficiaries can get credit of Rs. 50,000/- (upper
limit) 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

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Social Security Proposal

Calculations

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 1,50,000 Cr, additional yearly expenditure will be 7,20,000 - 1,50,000 = Rs. 5,70,000 Cr

Rs.

Considering current national income of Rs. 40,00,000 Cr, this additional

expenditure would be ~15% of national income

ArthaKranti

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A design towards Principled, Prosperous & Peaceful living
e
Improved
quality of life

Social
security

Balanced
Development
(Rural and
Urban)

Decreased Social
Unrest (reduced
Naxalism, terrorism,
extremism, etc.)

Dissemination
of Population

Increased Business
/ Employment
opportunities
locally

Opportunities of
Corruption are
reduced (PDS, fuel
etc.)

Market driven
quality supply
of goods &
services

Credit / Capital
expansion
in the banking system

Price
distortion
removed

as a whole
Farmers
suicide
checked

Assured
dignified
existence for
every citizen

Hugely increased
demand
for goods and
services
(Necessities)

Effective
implementation
of child welfare
laws & schemes

SSA beneficiaries will

not have right on
income from hereditary
property

Increase in
Purchasing
power of the
poor people

Increased
use of
Banking
system

Social Security Allowance

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

SSA cant be
used as
security for any
other loan

Bank account
for SSA
(associated
with SS Code)

Unique SS
code for
every
citizen

Establishment
of Individual
credibility
with bank

Saved Gov. Revenue

Expenditure

Maximum Credit
Limit
For SSA beneficiaries
up to say, Rs. 50,000

Credit
available
to the poor

Withdrawal of
Non-merit
subsidies
(Central and State)

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Jai Hind!

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
e
Back

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
e
Back

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Back

Government Officials

H.E. Smt.

Pratibhatai Patil,

Hon. President of India

(Personal meeting twice)

Dr. Montek Singh Ahluwalia,

Dr. Bhalchandra Mungekar,

Deputy Chairman, Planning

Commission (Book)

Member, Planning Commission

(Presentation)

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 Dr. Parthasarathy Shome,

Ex-Chief Economic Advisor to
the Union Finance Minister
(Presentation North Block)

Finance and Planning Secretary, Maharashtra (Presentation To CM, Maharashtra )

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

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Economists & Experts

Dr. D. R. Pendse

Dr. Narendra Jadhav

P B Sawant
Justice Supreme Court

Chandrahas Deshpande
Sunil Bhandare
Jairaj Salgaonkar
V. M. Govilkar
R A Mashelkar

M N Chaini

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Political Leaders

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Congress

Manmohan Singh,
Hon. Prime Minister

P. Chidambaram
Union Finance Minister

(Book)

(Book)

Sushil Kumar Shinde,

Union Power Minister

Prithviraj Chavan
MOS, PMOs Office
(Meeting)

V George
P.A. to Smt Sonia Gandhi (Presentation)

Pawan Kumar Bansal,

Minister of State for
Finance (Presentation)

Vilasrao Deshmukh,
CM, Maharashtra
(Presentation)

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Political Leaders

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BJP

Yashwant Sinha

Arun Shourie

Sushma Swaraj

SS Ahluwalia

Gopinath Munde

Nitin Gadkari

Rajeev
Chandrashekhar

Vinay
Sahasrabuddhe

Sudheendra
Kulkarni

LK Advani

Bhairon Singh
Shekhawat

Balbir Punj

Sompal Shastri

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Political Leaders

Mohan Rawle

Suresh Prabhu

Political leaders

Raj Thackeray
Shweta Paralkar
Shishir Shinde

Shiv Sena

MNS

Rajan Shirodkar

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Political Leaders

Sharad Pawar

Political leaders

D Raja
Dr. Kango

NCP

Jayant Patil

CPI

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Industrialists

Deepak Ghaisas
I-Flex solutions

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Narayan Murthy
Infosys

Arvind Padhye TCS Pune Center Head

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A design towards Principled, Prosperous & Peaceful living

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Media Experts

Kumar Ketkar
Loksatta

Raju Parulekar
E TV

Rajeev Khandekar Star TV

Yamaji Malkar - Sakal

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Prem Shankar Jha

Hindustan Times

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Creative Artists

Vijay Tendulkar

Mangesh Tendulkar

Sachin Pilgaonkar

Ashok Saraf

Nivedita Saraf

Nina Kulkarni

Mohan Joshi

Kiran Shantaram

Atul Parchure

Prashant Damle

Swapnil Bandodkar

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Educational Institutions

Goa Commerce College

Osmania university
NGOs

Loksatta
Maitri
i-Watch
Prayas (Reli group)

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Terrorism in India

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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How

ArthaKranti
we can tackle this

problem?

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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Terrorism Analysis
Reduced
Social
Spending

Lack of
Education &
Skills

Flawed Taxation System

Inadequate
Money Supply
to Economy

High Commodity
Prices due to Heavy
Indirect Taxes
No Access
to Credit

Tax Evasion

Under-utilized
Banking
System

Unemployment

Reduced
Purchasing
Power

Individuals
Credibility not
Established

Deprivation from
Resources and Means
(Credit) to Acquire Them

Poverty

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Terrorism Analysis
Loss of faith in peaceful, democratic process,
no hopes of getting justice without resorting
to violence

Desperation

Rebellious Tendency

Deprivation, Extreme
Disparity, Envy

Sense of Hurt, Damage to

Self Esteem, Indignation

Poverty

Social Oppression
(Communal / Religious /
Caste / Linguistic etc.)

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ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Physical constraints (Porous borders,
unregulated coastlines)

Lack of clear and firm

Foreign (therefore,
Defense) policy

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Parallel economy, Corruption, Fake /

high denomination currency

Terrorism

Public sympathy, Weak

national Character
Birth of a
militant

Logistic support, funding

and training etc from
hostile foreign
organizations / nations
Systemic Administrative
weaknesses in governance
and law enforcement

Propaganda for masses,

Indoctrination of
individuals
Religious
Dogma

Perceived
Historical injustice

Political / Economic /
Philosophical ideology

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

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

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ArthaKranti Proposal
Withdrawal of existing Taxation System Completely (except Customs/Import Duties)
Every Transaction routed through a bank will attract a certain deduction in appropriate
percentage 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 like
Central, 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)
Cash Transactions will not attract any tax
Government should make legal provisions to restrict cash transactions up to a certain
limit (say Rs. 2000)

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
e

Effects of Proposal
Reduced
social
spending

Lack of
education &
skills

Flawed taxation system

Inadequate
money supply
to economy

High commodity
prices due to heavy
indirect taxes
No access
to credit

Tax evasion

Under-utilized
banking
system

Unemployment

Reduced
purchasing
power

Individuals
credibility not
established

Deprivation from
resources and means
(credit) to acquire them

Adequate
revenue with
Government

Poverty

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
e

Effects of Proposal

Unemployment
High commodity
prices due to heavy
indirect taxes

Flawed taxation system

No access
to credit

Tax evasion

Under-utilized
banking
system

Inadequate
money supply
to economy

Reduced
purchasing
power

Individuals
credibility not
established

Single point
taxation system

Deprivation from
resources and means
(credit) to acquire them

No
Black
Money

Poverty

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
e

Effects of Proposal
Individuals
credibility
established

Banking
transactions
increased

Unemployment

Reduced
purchasing
power

No access
to credit
Under-utilized
banking
system

Inadequate
money supply
to economy

Individuals
credibility not
established

Deprivation from
resources and means
(credit) to acquire them

Poverty

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
e

Effects of Proposal
Industry, trade,
supply
stimulated

Cheap & easy

capital

Unemployment

Single point
taxation system

Purchasing
power
increased

Reduced
purchasing
power

Individuals
credibility
established

Deprivation from
resources and means
(credit) to acquire them

Poverty

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
e

Effects of proposal
Physical constraints (Porous borders,
unregulated coastlines)

Lack of clear and firm

Foreign (therefore,
Defense) policy

Parallel economy, Corruption, Fake /

high denomination currency

Terrorism

Logistic support, funding

and training etc from
hostile foreign
organizations / nations
Systemic Administrative
weaknesses in governance
and law enforcement

Public sympathy, Weak

national Character
Birth of a
militant

Poverty

Adequate
revenue with
Government

Individuals
credibility
established

Single point
taxation
system

No
Black
Money

Purchasing
power
increased

Industry,
trade, supply
stimulated

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
e

Effects of Proposal
Physical constraints (Porous borders,
unregulated coastlines)

Lack of clear and firm

Foreign (therefore,
Defense) policy

Parallel economy, Corruption, Fake /

high denomination currency

Terrorism

Systemic Administrative
weaknesses in governance
and law enforcement

Public sympathy, Weak

national Character
Birth of a
militant

Social
Security
Adequate
revenue with
Government

Individuals
credibility
established

Logistic support, funding

and training etc from
hostile foreign
organizations / nations

Empowered
Government

Single point
taxation
system

No
Black
Money

Purchasing
power
increased

Industry,
trade, supply
stimulated

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Hom
e

ArthaKranti

A design towards Principled, Prosperous & Peaceful living

Jai Hind!

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