K.V.A. Iyer, Cochin

From: KVA Iyer <iyervisual@gmail.com>

Date: Sun, Feb 7, 2010 at 11:54 AM
Subject: Budget Wish List
To: BudgetTwentyTen@gmail.com

1. Address food inflation. End blame game between Centre and States.  Expedite UID project.  Give smart card to all BPL families that Centre considers to be poor.  This card must be acceptable at merchant establishments just like credit card for purchase of grains, sugar, pulses etc.  The cardholder pays his/her share of price, while Central subsidy is charged to the Card. For supply side management, target subsidy to farmers in proportion to net higher yield per acre of existing farms.  Disband existing fertiliser subsidy.
2. Fiscal stimulus. India escaped from global financial meltdown of 2008 because Indian Banks had negligible exposure to toxic financial assets in USA. Yet Indian corporates cried wolf and secured fiscal and monetary stimulus, which had not helped to boost exports.  The stimulus must be withdrawn forthwith.
3. Inclusive Society. Only a small fraction of tax on goods reach exchequer because intermediaries siphon off good portion.  Allow Indians to pay tax directly.  Per capita GDP being Rs. 31,278,   a minimum Income Tax of 2 % for income over Rs 120000 is desirable.  Restrict tax on goods to consumer durables of value exceeding Rs 10000.
4. Growth. Incentives to FDI must be restricted to green field projects while fly by night capital must be taxed on exit. 

 K.V.A. Iyer
(Vice President, Water Transport Workers Federation of India, which represent port / dock workers and seafarers.)

Tel: +91 484 2331922
Cell: +91 98471 31136
Email: iyervisual@gmail.com

GAYATHRI
37/2295-A, Ponoth Road
Kaloor, Cochin – 682 017 (India)