Fifth budget of Arun Jaitley as Finance Minister:
Finance Minister of India announced the budget plans, last week. Interesting point was that he could not manage to curtail fiscal deficit. Another highlight is that this budget aims at pushing rural economy and healthcare. No candy has been provided to tax paying middle class by way of reduction in income tax unlike last year when many argue that the relief was academic.
The accounting of budget 2017-18 is here. As may be seen the revenue from non corporation income tax improved by over 20% and this buoyancy has perhaps led to the Government to ignore the long standing demand to simplify the Income Tax laws.
Income Tax in India:
Corruption and Bureaucracy:
Bureaucracy defines the march of any Nation. Govt can make policies and Bureaucracy can defeat it with impunity. To get the result the Government has to be extra cautious to rein in Bureaucracy often with carrot and stick policy.
Govt of India has already offered carrot to Bureaucracy by way of pay hike as recommended by pay commission. Time has come to crack the whip. Interestingly the most corrupt department of Govt is Income Tax department but unfortunately, Prime Minister Modi has a blind side which is Income Tax. As regard Finance Minister, his quality as a lawyer can not be disputed but he is not an administrator and certainly not an economist. As regards his administration, post demonetization chaos, is a proof of absence of administrative capabilities. His poor health certainly does not help.
Martial law by Bureaucracy: