Govt shouldn't run the airlines for sure but leaving railways and state transport to private players is a stupid suggestion. Totally impractical for a country like ours with a huge population that is economically weak and a private sector that us not capable of making commensurate investments.
No.. Kanchan is correct. Since 1991 Governments are globally envisioned less as an executing body and more as a facilitating body. Second, the cost of running these services severely dents the exchequer, the money can well be utilized instead for efficient governance. Third, I agree initially there will be chaos but slowly competition in the transport sector will remove inefficient practices and prices too would be rationalized overtime as a result. Finally with private investments flowing in, the sector will certainly create more jobs than government is able to do currently because India is a country where people migrate a lot and this scenario won't change at least for 2 more decades. So lots of benefits - More activity for market to run and less headache for governments to run.
Why not also look at cutting costs in operational areas by outsourcing to private providers, for e.g., like the Passport operations run by TCS ... To redress the GST rate annuity hole?
Which unfortunately is going to be used for covering fiscal deficit & so spent on non revenue generating expenditure (subsidies etc), making it an extremely ineffective use of one-time windfall akin to raiding the RBI !
RBI gave GoI which is the owner of RBI the accumulated profit share that every owner is due. One can debate about the amount whether it was too much and to the detriment of RBI's day to day role.. But there is no concept of giving, any profit always belongs to the owner in every organisation.
It was fascinating to listen to Mr Rathin Roy, as he shot of facts and figures like a true expert. It is strange that Kanchan Gupta's of the world used to eulogise the Ex-FM, now beloved by the bereaved, for setting a target of 3 %, and suddenly when things looks sullen and sordid, they change tune's. However kudos to him for conducting such a discussion. Hope the next time, they can bring experts like Ila , Patnaik & Arvind S in one room and have a free for all. As for the suggestion that Govt should get out of Railways , although good in principle is not practical. However, what Govt can do is give certain train routes, both passenger and freights, to private players on important sectors which has some good committed traffic flows. Giving maintenance of tracks in some sections and stations of major cities can also be thought of. First of all IF there is a financila crisiis lurking then there is a necessity to declare austerity measures. Then, I would tend to agree with Rathin to tax the petrol more as prices go up. And why not tax Aircraft Fuel more? Cars & two wheelers should be put on a Green tax. Cycles should be exempted from GST, while Airconditioners, diesel pumps, AC restuarants, AC cars, Art collectors, Rich farmers owning more than 5 hectares or more, CEOs, private pools, IB schools, should be all taxed more. Subsidy from IITs, IISc, should be withdrawn, an dreplaced by scholarships for the poor and average income students. Mining should be taxed heavily, while renewables energy sources should be given rebate's. Stop all pensions except for the low rung soldiers and defense /paramilitary men. Stop popular schemes like free rice etc; free electricity; etc stop subsidising girl students in big cities. Increase charge sfor tapped water. ..................the list can go on, but only if the politicians and the powers that be are listening.
Great insights... Just an important point... On the GST rate diff induced revenue deficit, it is not a one-time hole but a hole that will grow deeper year on year... And, also increase as a function of GST sales (more GST sales, deeper the hole..) It cannot be plugged by increasing revenue in 2-3 years as Rathin seems to indicate... One has to find an equivalent revenue stream year on year to fill the GST rate induced hole for each and every year...
Agree in totality, govt should not be in d biz of flying plane, bus & trains..but surely not divesting into PSU.. perennial issues like accountability, governance, fast decision making is lacking in today's P&L era... 1) every single bank transaction to be taxed that's how you widen the tax base.. gradually phase out income tax.. 2) pension system should only be allowed in armed forces, police & paramilitary. Rest all the govt establishments including parliamentarian like mp,mla,mlc after completion of their term all expenses to be stopped. 3) Investments, R&D innovation need to hv higher budgetary allocation. 4) Import duty should be increased. 5) Loan waivers, write off completely eliminate.
World is gradually moving towards UB pay due to technological revolution, and that is also a pure and simple pension system. Your analysis is coming from La la land economics. The economy has an objective to improve the quality of life for everyone and it is not an instrument for catering to few rich people.
GST was one of the worst Economic decisions at the time it was taken, suddenly many small businesses & traders were brought into an organized sector which they weren't used to, which led to a scare, and a slew of changes one after another have created an environment of fear, that and given the Dynamics of the current market consumption trends, the market has been steadily sucked dry of cash flow, so apart from an "Austerity Budget" , maybe an environment that enduces citizens to spend more & boost not only the Consumption based expenditure, but also cascading Tax!
5,077 views for a video like this, simply pathetic! Why don't we make Salman Khan or Ranveer Singh say the same thing? Will people then watch and take note? Perhaps, we deserve this silent fiscal crisis. God help us!
Because the Salmans and the Ranveers, and populists of the day, are never asked to comment on serious issues like the economy. Nobody except a few worried souls in the whole world, few by comparison, actually _have_ the interest and courage to even look into this complex matter while all our lives float by and we're _not_ in an existential crisis yet. It is human nature. Understanding 'how things work' is not part of the education, the one you formally get. Bringing such discussions to the masses, which I think is achievable, will require so many efforts like this video, but also simpler educational material where individual concepts are explained, that make things easier for the new ones at least. At the same time I think, there are no shortcuts to understanding and knowledge and that is precisely _why_ we need our experts to guide us through all this complexity.
If the reason for "austerity budget" is because the government collected less tax then it also means the people and corporate got more money in their pocket ie. a "stimulus" !!... Why is everyone in the market screaming about lower consumption and distress ?? When as per your analysis it is the government that should be distressed
@@prathameshshinde7281 but then effectively govt has reduced indirect taxes and this would put more money in consumer hand to spend and not just 10% slab....Across spectrum......isnt
@@varunvipin9199 I suspect one part of the issue is GST @ 18%/28% present significant psychological barrier to consumption compared to the cascading taxation even though overall indirect taxation is lower.
The govt finalised GST rates are not revenue neutral and there is a gap of 7-10%... So, more the GST sales, more the tax loss for the govt.. its like selling a product lower than cost price.. more sales, more losses... And, bringing more product into GST will also deepen this revenue loss hole...
@@shashankshukla2012 . The savings such should be distributed in unemployed and farmers and poor who have a much higher propensity to consume . Which would kick-start the economy ...
@@prakharkhandal4308 i am not living in india which could be considered as a great achievement since people all around the world see india as a shit hole.
![[Live] : ONE 168 วันนี้!! "โจนาธาน vs ซุปเปอร์เล็ก"](http://i.ytimg.com/vi/0jIN65KgJsI/mqdefault.jpg)
Fascinating conversation!
Hopefully people concerned listen to it!
And this of conversation makes a country great
@sheldon pereira even people in the government listens, understand too, but it's damn democracy, now even govt acknowledged the crisis
Govt shouldn't run the airlines for sure but leaving railways and state transport to private players is a stupid suggestion. Totally impractical for a country like ours with a huge population that is economically weak and a private sector that us not capable of making commensurate investments.
No.. Kanchan is correct. Since 1991 Governments are globally envisioned less as an executing body and more as a facilitating body. Second, the cost of running these services severely dents the exchequer, the money can well be utilized instead for efficient governance. Third, I agree initially there will be chaos but slowly competition in the transport sector will remove inefficient practices and prices too would be rationalized overtime as a result. Finally with private investments flowing in, the sector will certainly create more jobs than government is able to do currently because India is a country where people migrate a lot and this scenario won't change at least for 2 more decades. So lots of benefits - More activity for market to run and less headache for governments to run.
wow... Just today Finance minister announced reduced corporate taxes and Rathin said exact same thing in Aug,2019. Amazing day to watch this video.
I think this Gupta guy misrepresented what Rathin Roy said....!!
Why not also look at cutting costs in operational areas by outsourcing to private providers, for e.g., like the Passport operations run by TCS ... To redress the GST rate annuity hole?
RBI just gave govt 1.7 lakh crore
Which unfortunately is going to be used for covering fiscal deficit & so spent on non revenue generating expenditure (subsidies etc), making it an extremely ineffective use of one-time windfall akin to raiding the RBI !
RBI gave GoI which is the owner of RBI the accumulated profit share that every owner is due. One can debate about the amount whether it was too much and to the detriment of RBI's day to day role.. But there is no concept of giving, any profit always belongs to the owner in every organisation.
It was fascinating to listen to Mr Rathin Roy, as he shot of facts and figures like a true expert. It is strange that Kanchan Gupta's of the world used to eulogise the Ex-FM, now beloved by the bereaved, for setting a target of 3 %, and suddenly when things looks sullen and sordid, they change tune's. However kudos to him for conducting such a discussion. Hope the next time, they can bring experts like Ila , Patnaik & Arvind S in one room and have a free for all.
As for the suggestion that Govt should get out of Railways , although good in principle is not practical. However, what Govt can do is give certain train routes, both passenger and freights, to private players on important sectors which has some good committed traffic flows. Giving maintenance of tracks in some sections and stations of major cities can also be thought of.
First of all IF there is a financila crisiis lurking then there is a necessity to declare austerity measures. Then, I would tend to agree with Rathin to tax the petrol more as prices go up. And why not tax Aircraft Fuel more? Cars & two wheelers should be put on a Green tax. Cycles should be exempted from GST, while Airconditioners, diesel pumps, AC restuarants, AC cars, Art collectors, Rich farmers owning more than 5 hectares or more, CEOs, private pools, IB schools, should be all taxed more. Subsidy from IITs, IISc, should be withdrawn, an dreplaced by scholarships for the poor and average income students. Mining should be taxed heavily, while renewables energy sources should be given rebate's. Stop all pensions except for the low rung soldiers and defense /paramilitary men. Stop popular schemes like free rice etc; free electricity; etc stop subsidising girl students in big cities. Increase charge sfor tapped water. ..................the list can go on, but only if the politicians and the powers that be are listening.
Great insights... Just an important point... On the GST rate diff induced revenue deficit, it is not a one-time hole but a hole that will grow deeper year on year... And, also increase as a function of GST sales (more GST sales, deeper the hole..)
It cannot be plugged by increasing revenue in 2-3 years as Rathin seems to indicate... One has to find an equivalent revenue stream year on year to fill the GST rate induced hole for each and every year...
Agree in totality, govt should not be in d biz of flying plane, bus & trains..but surely not divesting into PSU.. perennial issues like accountability, governance, fast decision making is lacking in today's P&L era...
1) every single bank transaction to be taxed that's how you widen the tax base.. gradually phase out income tax..
2) pension system should only be allowed in armed forces, police & paramilitary. Rest all the govt establishments including parliamentarian like mp,mla,mlc after completion of their term all expenses to be stopped.
3) Investments, R&D innovation need to hv higher budgetary allocation.
4) Import duty should be increased.
5) Loan waivers, write off completely eliminate.
World is gradually moving towards UB pay due to technological revolution, and that is also a pure and simple pension system. Your analysis is coming from La la land economics. The economy has an objective to improve the quality of life for everyone and it is not an instrument for catering to few rich people.
thats the govt did exactly right . ?? reducing the expenditure (one of the two solution he gave )
GST was one of the worst Economic decisions at the time it was taken, suddenly many small businesses & traders were brought into an organized sector which they weren't used to, which led to a scare, and a slew of changes one after another have created an environment of fear, that and given the Dynamics of the current market consumption trends, the market has been steadily sucked dry of cash flow, so apart from an "Austerity Budget" , maybe an environment that enduces citizens to spend more & boost not only the Consumption based expenditure, but also cascading Tax!
5,077 views for a video like this, simply pathetic! Why don't we make Salman Khan or Ranveer Singh say the same thing? Will people then watch and take note? Perhaps, we deserve this silent fiscal crisis. God help us!
Because the Salmans and the Ranveers, and populists of the day, are never asked to comment on serious issues like the economy. Nobody except a few worried souls in the whole world, few by comparison, actually _have_ the interest and courage to even look into this complex matter while all our lives float by and we're _not_ in an existential crisis yet. It is human nature. Understanding 'how things work' is not part of the education, the one you formally get. Bringing such discussions to the masses, which I think is achievable, will require so many efforts like this video, but also simpler educational material where individual concepts are explained, that make things easier for the new ones at least. At the same time I think, there are no shortcuts to understanding and knowledge and that is precisely _why_ we need our experts to guide us through all this complexity.
What about cutting the bogus Fasal Bima Yojana and Ayushman Bharat?
If the media just heard this man.
He is a member of PMEAC
ohh bitter Rathin. Who is he disparaging now? Lets see
*AUDIO EFFICIENCY IS REALLY PATHETIC, PUT THE SLIDES ON SCREEN WHEN GUEST IS TALKING ABOUT THAT, NEEDS QUALITY SERVICE ON ALL THESE ISSUES!*
relax dude
If the reason for "austerity budget" is because the government collected less tax then it also means the people and corporate got more money in their pocket ie. a "stimulus" !!... Why is everyone in the market screaming about lower consumption and distress ?? When as per your analysis it is the government that should be distressed
I like to know how far this logic should stand....Cos I was thinking the same
No it is not that way, corporates did not make money since consumption is low. Hence tax collection is also low.
@@prathameshshinde7281 but then effectively govt has reduced indirect taxes and this would put more money in consumer hand to spend and not just 10% slab....Across spectrum......isnt
@@varunvipin9199 I suspect one part of the issue is GST @ 18%/28% present significant psychological barrier to consumption compared to the cascading taxation even though overall indirect taxation is lower.
The govt finalised GST rates are not revenue neutral and there is a gap of 7-10%... So, more the GST sales, more the tax loss for the govt.. its like selling a product lower than cost price.. more sales, more losses... And, bringing more product into GST will also deepen this revenue loss hole...
Reduce govt employee salaries and pensions that's the only solution ..
But with that there is a possibility of fall in consumer demand with middle class esp in non metro cities.
@@shashankshukla2012 . The savings such should be distributed in unemployed and farmers and poor who have a much higher propensity to consume . Which would kick-start the economy ...
Also if you go after the middle class, that will come back to bite you in the unmentionables, maybe not politically ,but financially for sure
Get haircut and facewashed, lol.
And what have you achieved in life by doing that?
Whats wrong with u ?
Personal hygiene is very important and presentable.
@@zengpang3177 lol, nothing is the answer.
@@prakharkhandal4308 i am not living in india which could be considered as a great achievement since people all around the world see india as a shit hole.