economics I will not bore you actually
it’s very simple thing economics it’s a
science of life it’s a science of
resources I don’t know who are those
intelligent people made them made it so
complicated it’s a science of resources
the problem in this country we teach in
the art ba economics we don’t have BSC
economics if the basic fundamental of
economics is demand and supply demand is
defined by need and purchasing parity in
this 130 corrode country people only 42
corrode people have parity but all 130
corrode have the same need and that’s
why the enough demand is not there a
country which is just 1/4 in population
of India is United States of America
which has ten times more demand than
India and one-fourth population this
kind of irony happens because we have
not done anything in last 70 years which
will give the parity and prestige for
every person
Arthur granthia say in zero we introduce
an atrocity of that and national
spokesperson we prepared a design not a
concept not a dream a perfect design a
bill to be kept in Parliament presented
to our honorable Prime Minister Narendra
Modi and I think one of the point or two
of the points got introduced which is D
monetization and banking inclusion I
will go to the proposal but at the end
but the beginning I just want to
introduce two good slides to you where
you will understand what is the economic
reality of this country and what is the
social reality of the country that the
this is our country it’s such a simple
thing to understand do not get confused
if anybody confuse you on economics it’s
the science of life remember that this
is the building this is our country it
has four floors say one is the floor of
it these are all expense floors when is
the interest of national depth the
second is the cost of learning
government which is 61% by the way huge
floor national security police
securities and military and then there
is a floor where infrastructure
agriculture and need of a common man’s
are defined and this is a floor which is
very important for Sadiq pani Beasley
health and education this is the
building the water is a analogy for
money in the economy what is money in
the economy money is a medium like this
is there is air here we are all a
breathing I cannot say I am taking
breath nobody should breathe I cannot
say that can i that’s the that’s the
money does the role in the economy money
is for use money is not for making
ownership of it when the high
denomination currencies are there people
store that money in those currencies and
that becomes a commodity and that’s a
show in this country that money is not
available for everyone as a medium it
has become commodity for few people this
is the money water national economy does
the building anyway every everybody
knows how the building functions we all
stay there the fiscal deficit is the gap
of the water getting in the tank and
getting out of that and why there is a
deficit because there is a complicated
pipeline at the left-hand side which are
the grantee calls as complex taxation
system we how many taxes we pay you know
direct merit there are more economists
here I think MBA people also we pay 71
types of different taxes in this country
no country in the world has the only tax
remain is a funeral tax when you go to
your last days doctor will tell you how
you spread difficult tax then I can hand
out the body so this all this taxation
because of the complex taxation system
which is completely for interpretation
if you go to two different CS they
always do a different interpretation the
same tax agency
him there is a huge tendency of avoiding
taxes and that all as getting out of the
economy in black money do not have a
presumption do not have a dice
understanding that politicians and
bureaucrats are only corrupt or they
create black money we all create black
money if I go to shop buy something and
don’t insist for recipie I have created
– Minh as an account el money in the
current economic and that’s the black
money the money lack money is not in
color back it is the money which cannot
be traceable you cannot have footprints
of that money where who has handed a
room who has given to whom you can’t
find that so this is the pipeline which
is complicated the black money there is
a big point getting there on the other
side of the building which is the
expense building that’s a revenue side
this is the expense side government
thinks on this what to do there is no
enough water in the building they bring
tankers from outside as we all those
tankers are FBI fi NAC said the
unfortunate parties those tankers are
pouring water put Nets the tankers are
pouring water in the down a tank and
again it is getting out with a big force
out of the economy both these black
money ponds which are non traceable has
created an underground economy which is
up maybe 7 times 10 times 15 times 25
times of the real economy we don’t know
what we don’t know that’s an underground
economy on that underground economy next
please
there are three things are getting
thrive on one is the corrupt politics
secondly the corrupt bureaucracy and
third is the corrupt trade practice next
now this is the economic reality of the
country is so simply explained and now
the social reality is this country there
is a board there are three decks from
the board one is the upper deck middle
deck and lower deck the upper deck is a
light class which 8 to 10% people may
look organized class is the middle class
lower middle class upper middle class
middle middle class all organized life
living people like you and me that’s
another 25 to 30 percent and then is a
huge unorganized class the United class
priority is the policy of the country
what is getting opened what is getting
introduced what is the merger
acquisitions of what what what the
investment will come they are worried
about that but the last class which
unorganized class is 60% of this country
they are completely worried about the
survive
they are no other me when they get up in
the morning they think how this day will
be spent what I will feed to my kids
well I will bring shelter from their
heralding clothes from they are just
struggling for that last seven decades
this is our fortune that they are not on
the street with a gun in their hand and
shooting at us they are still very it’s
very boiling thing next slide
current situation you know why what is
the root cause for this we found out
there are three root causes one is a
flawed and failed taxation system second
is internationally high denomination and
it’s rational distribution and third is
underdeveloped banking system next just
a high denomination in every country USA
has a $53,000 per capita income the
highest currency note is hundred dollars
these are the cost of the printing note
the thousand rupees note is only cost
four rupees in a parallel economy in the
in our neighbor country market it cost
thirty-nine rupees to print a jolly
thousand rupees note a fake currency
note and that means it’s 761 percent
profit there is no business in last
10,000 units in the world which has
given so much profit to any entrepreneur
that’s why that that market was very
fact this is the cost of that this is
the percentage next please
so Arthur Gandhi given as a five-point
proposal very simple we said withdraw
entire taxation system direct indirect
all state local central stacks
completely withdraw except for custom
duty and import duty why custom and
import utility square because they are
not mean for revenues they are mean for
the international trade balance because
otherwise the market will be full with
some other countries China’s good and
the desi people will not have any thing
to sell so that this firkin regulator
they are not for revenue then we say you
enter a transaction tag for that every
transaction has to be routed through a
bank and you introduce say 2%
transaction tax for every transaction
that happens next this deduction is only
on the receiving account if I give a
cheque of hundred rupees to you I will
not pay any tax but the person receives
that on the credit he will get 98 rupees
different in his account and two rupees
will be cut as a transaction tax those
two rupees will be deducted 75 so that
will go to central government that
moment 65 cycle to the state government
30
by certain local government if more
times action upon this pune city pune
government Municipal Corporation will
get more revenue as the transaction goes
up the local government gets their own
share of that transactions for which
they are thriving and then we say that
transaction banks in states has a very
vital role to play they need to get some
percentage because in this sixth this
country’s six lakhs fifty-one thousand
villages and only one lakh two thousand
villages or towns have the banks when I
say town as one entity so it is still 20
if not more than 22 percent and if that
is the case we need to banks will not
open the branches unless we get them
some incentive this government will
force on Bank Bank will quit one day and
that exactly happened that’s why we said
thirty five paisa should go to the bank
for some initial period we said other
than that
whatever transaction can happen there is
no tax no even no transaction tax for
the cash transactions next please
next please but we need we saying just
limit those transactions to two thousand
rupees say 2,000 rupees can be 3000-4000
model if this can be worked out but we
said other than that do not have any tax
on that if I want to buy a mobile if it
is 40,000 rupees I buy by cash and that
something goes wrong with that if I go
to complain they will say where is the
transaction which against which you have
purchased this mobile if it is beyond
the limit of 2000 or 4000 then they will
say if there is no transaction you can
show we cannot guarantee the repairs I
can buy a real estate flat in 1 corrode
by paying cash but the no registration
will happen that’s why we mean by legal
protection don’t give any legal
protection do the thing which is beyond
that limit and then we said that keep
the last note as 50 rupees say 50 rupees
or maybe 100 rupees other than that all
denomination hydrogen note should be
cancelled because they are vehicle of
cash economy it’s very difficult to
carry 150 rupees note for a big
transaction because it takes too much
size and money so it is better to have a
note because this happen in the world
people ask me question yes people say in
our country is it possible I think
government has taken 2 step one is a
banking inclusion with the Gendron
account
and second is demonization but
government has not touched the source
part which is a taxation system yet
I hope they will touch that in this
country is it possible it is very much
possible so you need to create that
prestige for everybody like in a in a
chess board there is a power game who is
will poop with the most powerful on
chess game Queen King because Queen has
a power and King has a prestige always
remember the power multiplies when a
when a spawn goes to the end it can come
back as a twin the horse
elephant everything has a different
power levels but they are all playing
the game of life for the king which has
a prestige and if the prestige on the
board till the game continues the
prestige goes the power is of no use
what we need to do is and when the two
prestige remain when the two King
remains on board what happens the game
is draw prestige cannot defeat prestige
what we have to do in this country is to
create that living prestige for every
person and for that the basic thing we
have to work on that Smallville in that
whole wheels on the wheels mechanism of
this financial mechanism of the country
the one wheel has broken of the taxation
system if you regulate that will things
will be different which the people think
it’s radical it’s not radical economics
is not difficult it’s a simple the
biggest economists in the world is our
mother because economics the science of
resources and mother makes sure that all
resources in the house are assigned to
the needy people in the house that’s the
simple definition of economics that’s
why that’s the reason we need a finance
minister who is economists to understand
social patterns and not a liar there is
nothing to defend there that everything
to act there is nothing to argue
everything to propose it’s it’s it’s a
beginning then later but it’s very
pleasure talking to you and thank you
for your time [Applause]