Igniting the Animal Spirit of the Markets - Part 1
- Contain the fiscal deficit, trade deficit and current account deficit within reasonable levels
- Control the monster of inflation
- Bring back the growth rates of GDP to the rates that prevailed "gung-ho years" - if you can achieve a sustained GDP growth of 10% per annum that would be even better
- Come up with "populist schemes" that will benefit the "Aam Aadmi" and help the UPA government to hold on to power in the 2014 elections
- Ensure the recovery of the Capex cycle of investments in industry, infrastructure, education, health, etc.
- Enable methods to minimise (or, better still, eliminate) corruption.
- Come up with schemes to improve the motivation level and the productivity of the bureaucracy
- Put more money in the hands of the "Common Man", thereby enhancing the "Feel Good Factor"
- Provide enough funds to Defence and Internal Security so as to ensure that "neighbours" and the "maoists" don't try anything "adventurous"
- Satisfy the "demands" of "alienated" people from regions like Telangana, North East, etc.
- They should be either revenue-enhancing or revenue neutral. If they are revenue-reducing suggestions, the alternative to "make up" the lost revenue will also be given alongside.
- They should appear to be so populist that it would be rather difficult for most political parties to oppose the suggestions. Except for token symbolic opposition or opposition by "committed opposition members" like the communists and the Trinamool, for instance.
- Ideally, they should not require legislative approval, wherever feasible. Any suggestion which warrants legislative approval can easily get mired in significant delays.
- They should be "easy-to-implement". Better still, they should not only be easy to implement, wherever feasible, the results or impact should be immediately felt by the potential beneficiaries.
Changes to Income Tax Laws - 1
Introduce the following changes:
Benefits of the above proposals: