Why The Counter Productive Neglect of Middle Class Will Continue : No Reason For Hope In Budget
Rajiv Upadhyay
India and its government is obsessed with US success and is following its footsteps religiously . It may not be the best solution to our problems .
Even in USA middle class is shrinking and moving fast into poor class in recent years . Judging by the neglect of middle class so far in budgets , the same is in store for it in India.
With all the media houses and big think tank under corporates , we are being bombarded with pro corporate propaganda just like ‘ India Shining’ campaign
in Vajpayee days .Otherwise how can a government that can write off 11 lakh crore rupee loans still deny income tax relief by raising tax slabs by Rs ten lakh ie 30 % above Rs 20 lakh income , 10@ over Rs 10 lakh and no tax upto Rs 10 lakh . It may cost Rs 60000 crore . Why cant it pay DA arrears in PF when it gave so much to others in COVID days . Government is giving free ration , MNREGA , Kisan Samman rashi , housing subsidy ,loan write off etc to its Note bank and Vote bank but in spite of Arun Jaitley promise in 2014 , it is not only denying any concession but loading it with higher indirect taxes because in its opinion middle class is not important as it neither has any significant vote or note .
in Vajpayee days .Otherwise how can a government that can write off 11 lakh crore rupee loans still deny income tax relief by raising tax slabs by Rs ten lakh ie 30 % above Rs 20 lakh income , 10@ over Rs 10 lakh and no tax upto Rs 10 lakh . It may cost Rs 60000 crore . Why cant it pay DA arrears in PF when it gave so much to others in COVID days . Government is giving free ration , MNREGA , Kisan Samman rashi , housing subsidy ,loan write off etc to its Note bank and Vote bank but in spite of Arun Jaitley promise in 2014 , it is not only denying any concession but loading it with higher indirect taxes because in its opinion middle class is not important as it neither has any significant vote or note .
From subsidy on gas cylinder to GST on electricity or restaurants , the indirect tax burden on middle class is increasing . The lowered interest rates on FDs has only reduced the income of retired people . Government is eulogizing ‘pakoda wallas’ or ‘dhandha wallas’ as self employed because it cannot create jobs .It does not realise that nation is built by Scientists , doctors , engineers and other professionals . It has killed the high income sectors growth completely . We are seeing the rise in Rs 8000 pm delivery boy type jobs or contract teachers job in Bihar . Even army pension are now being targeted by its Agni Veer scheme . The safe old pension scheme is out . Government dispensaries or hospitals are being replaced by insurance based schemes on American pattern . American heath system is putrid and hell for poor.They are not a substitute for good block level polyclinic / dispensary or big District hospital . Really every district head quarter should have a big government multi speciality hospital .Even prior to GST, state and centre’s tax collection was about Rs 125000 crore rupees . With introduction of GST it came down to 95000 crore . Who benefitted by loss of 30000 crore revenue from GST for several years? Even the current GST increase is from imports . Atmanirbhar Bharat is undoubtedly good strategically but will further harm middle class by higher prices of locally produced goods as can be seen in higher TV costs.
It is all bad economics .
High income Middle class was the cause of rapid growth in Manmohan era . The biggest poverty alleviation happened in that era. Trickle down lead to PVRs , Malls , Car sale etc . which ultimately contributed to higher tax collection . Investment in property was better than shares . It helped in very spread out distribution of money as small houses value also increased . The government expenditure on roads and infrastructure was long overdue but it is very inefficient and has long gestation period . The short term return investment has died down . Due to lack of demand, the private sector is not creating extra capacity .
Yet budget after budget government gives incentives to corporates like tax cuts from 30 to 25% . What has corporate concessions given to nation? Has it lead to increased investment or job creation?
No ! so why prescribe more of the same failed medicine because just because media and newspapers are taking the government on ‘Shining India ‘path of Vajpayee government . Hindutva is a political compulsion as no economic progress is worth quoting in ‘Sabka Vikas ‘ .
Even Hindutva is suffering from Law of Diminishing Return ‘. Government should look for alternatives .
To gain the lost political space , the desperate opposition will break hindu unity the way V.P.Singh broke Devi Lal Kisan Card by Mandal card in desperation . The signs are visible .Bihar minister attack on Ram Charit Manas , Jai Shree Ram vs Jai Siya Ram, AAPs rise in Punjab and elsewhere is indicative of diminishing appeal of hindutva on all India basis . Ayodhya , Kashi , Mathura may be helpless in caste based politics as seen in UP’s Kairana, victim of the the worst Kashmir type expulsion of hindus from villages for land grabbing although it will appeal in cow belt . Siddharamiah created language crisis in Karnataka and Matha demand for exclusion from Hindu fold to beat Hindutva of BJP. Similar strategies will be devised harming the nation and the greater hindu cause.
Middle class is supporting BJP due to TINA factor and reputation of honest PM and it hates anti hindu Sonia congress . Some day an acceptable alternative will emerge in desperation !
Government must not kill middle class on shopkeepers and corporates advice and reduce tax burden by raising tax slabs by ten lakhs flat and pay DA arrears
