COVID-19 ‘BONDS’
World has been struck by the deadliest weapon or World is afflicted with the deadliest disease are synonymous statements. The disease has no known cure as on date. The VIRUS cannot be controlled until a proven vaccine is developed. Accelerated research to develop the vaccine is the primary objective of every nation. However, a proven and effective vaccine for killing the COVID-19 virus is a distant dream. Even if the vaccine is developed and vaccination process begins, it will take few years for world population to be immunized.
Let us, therefore, leave the vaccine related issues and move over to face the most pressing issue as on date and that is of financing the COVID-19 fight. Large number of experts have made gloomy forecast about the financial problem that entire world will face, India being no exception. Your Government has taken numerous note worthy decisions to meet challenges, both in medical and economic arena. Quite a few economists of repute have made some extremely important suggestions, mostly to the Government. But I am yet to read any concrete suggestions/specific measures that ‘WE THE CITIZENS’ must adopt to overcome/minimize financial trauma due to COVID-19. I do believe that if every citizen stands up voluntarily or is ‘coaxed’ to stand up, we might mitigate sufferings of the deprived to a limited extent. With little or no knowledge of economics, I do believe if we achieve ZERO percent growth in current fiscal, we would have done well. Projected growth of about 2% would be an outstanding performance.
While you are leading from the front in all spheres, the need to generate ‘HARD CASH’ to mitigate the sufferings of millions belonging to unorganized sector cannot be wished away. Government alone cannot accomplish this task.
Lot of worthy and duty conscious citizens have already made their contribution to PM CARE fund. But that is not enough. Much more needs to be done. Every financially ‘able’ citizen has to contribute either voluntarily or by instituting measures that will ensure that every citizen makes suitable contribution. Implementation of latter issue will need few simple but tough decisions, which will generate cash instantaneously.
The sole purpose of the proposals is aimed at harnessing the collective financial muscle of 1.3 Billion Indians and not to harass/inconvenience anyone. It is the obligation of the ‘HAVES’ to provide for the ‘HAVE NOTS’ in this crisis situation of unthinkable magnitude.
The proposals are:-
- Demonetisation of Rs 2,000 Currency. The word ‘Demonetisation’ will, indeed invite sparks from all and sundry, which must be ignored. By a simple directive (as you did on 8th November, 2016) currency notes of Rs 2,000/- should be demonetized and ordered to be deposited in banks and other financial institutions. No questions must be asked from the depositors as to where and from whom the currency came from. 70% of the amount deposited should be credited to individual’s bank account. Balance 30% should automatically be credited to PM CARE fund. For instance if an individual deposits Rs Ten Lakh (by way of Rs 2,000/- denomination currency), SEVEN LAKH should stay in his/her account. THREE LAKH should be transferred to PM CARE account. The amount so ‘donated’ to PM CARE fund should be refunded to individual or his/her nominees after a period of FIFTEEN YEARS in FIVE equal instalments without interest. Logic of REFUND WITHOUT INTEREST is simple. If someone can keep Rs ten lakh stashed away at home, he/she needs no interest income from the amount. NINETY DAY period should be permitted for depositing 2000 rupee currency notes in his/her personal saving/current/trust/company account. After ninety days from the date of announcement, Rs 2,000/- currency notes should be of ZERO value. Net contribution made to PM CARE fund should be exempt from income tax.
- Permanent Dwelling Unit/Immovable Property Owners Tax. I could not find out the accurate figures for number of permanent dwelling units in the country, hence I am hazarding a guess. At least 50% of the 1300 million Indians i.e. 650 million must be staying in permanent DUs. Assuming each nuclear family comprising of FIVE MEMBERS owning a permanent DU, India should have around 130 million DUs of varying size and value. Each DU owner must be directed to contribute 1% of the market cost (based on prevailing circle rates promulgated by local authority as on 31st march, 2020) to PM CARE fund. This contribution should be returned to DU owner/s with saving bank rate of interest after five years from the date of deposit in five equal annual instalments.
The DUs, which are yet to be handed over to owners by the builder must also be brought under the purview as above, provided builder has received 90% cost of the DU from prospective owners. 1% OF THE MARKET VALUE OF EACH DU SHOULD BE PAID BY THE BUILDER. Record date for these DUs should be 31st March, 2020.
Same provision should be applicable to plot/s of land purchased for construction of DU/Mall/office/Factory.
Same provision should be applicable in case of owners of Shops/Ofice Space etc in a market complex/Malls.
These contributions, too, should be exempt from income tax.
In short every owner/s of any immovable property will contribute 1% of market value of property to PM CARE Fund.
- Agricultural Land Owners Tax. Owners of large holding of agricultural land/orchards in this country are the worst financial offenders. In the garb of agricultural income, they pay no tax on billions of rupees earned by them year after year. It is time that the large land owners were ‘made’ to contribute towards national well being in this hour of acute financial distress faced by millions out of job. Every land owner, whose holding is in excess of TWO ACRES (to protect small farmers) must be made to pay 1% of the assessed market value of the land held by a ‘FAMILY’. Family would mean/ deemed to comprise of PARENTS, CHILDREN and GRAND CHILDREN. Record date for deciding land holding would be 31st March, 2020. Contributions must be exempt from income tax.
- Stoppage of ‘SECOND’ Salary and Pension from Government to Existing Pensioners. All government servants, who are in receipt of regular pension must not be paid any remuneration in form of salary, even if they are employed by Govt of India after having retired from earlier assignment. For instance if the current NSA or Minister of External Affairs or a retired lt General appointed as Governor/Lt Governor or a Military Officer appointed as Ambassdor are receiving pension due to their earlier service, they should no longer be paid additional salary. Only administrative support viz staff, accommodation, vehicle etc should be provided. In quoting their example, there is no intention, in any way, to malign these outstanding ‘sons of the nation’. It is merely to emphasise that measures, such as this must be implemented from top. Due to loopholes in rules, there are fairly large numbers of government employees receiving two pensions. This abhorring/dishonest practice must cease forthwith. This provision will not be applicable to military personnel, re-employed after having super-annuated.
- Re-imposition of Wealth Tax. Wealth tax was discontinued few years back. It needs to be re-introduced. Applicability of wealth tax should be in all cases, where net worth of an individual/family/ company is more than ONE HUNDRED CRORE. Wealth Tax @ 4% of net worth must be re-introduced from current fiscal.
Mr Prime Minister, a legal ‘EAGLE’ has already filed a PIL, which has been admitted by Supreme Court, challenging your decision to open PM CARE account without adopting proper procedure. All of the above measures, too might be challenged in the court.
In order to take care of such contingency, you may like to consider recommending imposition of FINANCIAL EMERGENCY to the President. Imposition of financial emergency is an option in the event of acute financial distress vide Article 360 of the constitution.
Sir, cosmetic measures such as cutting MPs salary by 30% is an excellent but symbolic gesture. COVID-19 cannot be neutralized by mere symbolism. We need the ‘VACCINE’ and ‘MONEY’. Vaccine is still a distant dream but Money can be available by adopting above measures.
All the above measures demand tough decision making. Populist measures will not alleviate the sufferings of the disadvantaged millions. ‘WE THE PEOPLE’ as enshrined in our constitution must rise to minimize/mitigate/eliminate the sufferings of Indians employed in unorganised sector earning daily bread.
To the responsible citizens of India, I will quote a couplet of Sant Kabir Das;
“Bada Hua to Kya Hua, Jaise Pedh Khajoor,
Panthi ko Chaya Nahi, Fal Lage ati Dur.”
Pratyek Saksham Hindustani ka yeh Kartavya aur Dayitva hai ki woh apne samarthya ke anurup apni zimmedari nibhaye.
Gp Capt TP Srivastava
17th April, 2020
Memoirs of an Intellectual Journey 