Authentic Truth behind Freedom of India.

On a historic day, July 5th 1945, UK general elections held. Historians still struggling to explain how could the war veteran Winston Churchill lost this election, almost the winning of the War is only a few weeks away.  Historians blamed it on anti-incumbency due to unemployment and general frustration after 6 years of World War II. Another perspective was that British people believed Labor party is better positioned for reconstruction of UK after WWII,  than Conservative party.
Anyhow, the Labor Party leader Clement Attlee assumes office of the Prime Minister of United Kingdom, on 26th July 1945.  

In less than a year after taking over as PM, Mr Attlee announces the UK cabinet's decision, to free India, on 16th March 1946.   Mr Attlee literally decided washing his hands off of largest British colony. Mr Attlee had no interest on the future of India unlike Mr. Churchill. Destiny began on that day, 16th March 1946.   

Tamil Nadu 2014-15 Budget documents finally published on net.

I have waited for over 6 months to see detailed documents of Tamil Nadu budget on the net. The government quoted a silly reason that Election 2014 delayed the Budget presentation and subsequent delay in posting documents on net, on my RTI inquiry.

In the Year 2014-15, the state's Revenue is projected at Rs. 99,919 Crores. This is much less than what they projected 2 years back in advance projections as Rs. 108,545 Crores. The budget has not released the Salaries and Pensions for Government employees for 2014-15. However, it has revised it previous estimate of Salaries and Pensions from Rs. 42,000 Crore to Rs. 49,600 Crore, for the year 2013-14. This is a big surprise and astounding, that why would a fixed spending of Salaries would go up that much increase!. I do estimate the Salaries and Pensions of Govt for its employees,  would be around Rs. 54,000 Crore. I had mentioned earlier in my previous blogs that the ration of Salaries and Pensions reached 49% to the Government's Revenue Income, before borrowings and Central provisions. Let's take a look at the ration of Salaries&Pensions to Revenue, this year 2014-15 at Rs. 54, 000 Crore to Rs. 99,919 Crore. The percentage is at 54%.  Oh, My God!!!.   Why would the People of Tamil Nadu not informed that 54% of Govt's income is spent for Govt. Employees, compared to 49% last year!!!!.  TN govt employs about 12 Lakh people. Govt spends 54% for 12 Lakhs. Remaining 46% for the 7 Crore population! This is the Himalayan Insanity! 

2013-14 Tamil Nadu Budget falling into Niagara Falls!?

The Revised budget presented on the Govt website www.tnbudget.tn.gov.in has the following details for the year 2013-14.

The Revenue Receipts( Income of the State before Loans){A} stands at Rs 1,18,579 Crores. Out this, the State own revenue ( from the sales taxes, other taxes, stamp duty etc) is at Rs.86,065. Share from Central Taxes is Rs. 17,285 Crore. And state's non-tax revenue is Rs.  6,765.

Now let us look at the Loans the state government borrows. The total borrowings{B} for the year 2013-14 is Rs.  29,439 Crores.
Now let us look at major expenditures of the Government. Revenue Expenditure is Rs 1,17,915 Crore and Capital Expenditure is Rs 22,505 Crore. Total Expenditure{C} is Rs 1,40,420 Crore.
The net Deficit is {C} - {A} [  Rs. 1,40,420 Crore - Rs. 1,18,579 Crore.] == Rs 21, 841 Crore.

So, our calculated Deficit is only Rs. 21, 841 crores. But, the govt states in its budget it borrows{B} Rs 29,439 Crore. That means, is the Govt borrowing Rs. 7598 crores more than what it needs? Or is the govt not showing some expenditure to the tune of Rs. 7598?

I was lost at this Government's budget numbers for a moment. Then I went back to look at few other documents.  Bingo, that's amount Government re-paid Loan principal amount. The govt borrowed Rs. 29,439 crore. It repaid loan amount Rs. 7598 Crore. Do you know how much the govt paid interest for this year? Rs. 14,230 Crore interest payments.

But, why would the Government states in 'Budget at Glance' document, the Government's deficit as only Rs. 1,796 Crores? When the Government borrowed actually Rs. 29, 439 crore, why are they showing the Deficit as only Rs. 1796 Crore?

Is the Budget of the government really falling into Niagara Falls? 

India Budget 2013-14. How much people know the depth of Budget?

I have always had interest to analyze the Central Government Budgets and Tamil Nadu Govt budgets in unique ways, than what the traditional Media do during Budget season. In the recent times, I would say since 1991, Budgets are viewed more aggressively than any times in the history of India. Many stakeholders have come to play role during Budget season. Media, Lobby groups, Corporate Houses, non-profit organizations like CII, NASSCOM etc, Political Parties, and many others, start demanding their selfish expectations right around the Budget times.

When I want see how many are actually, writing for the sake of the Nation, I only see very few articles. So many of the demands that the Media writes about is:  Seeking Income Tax slab increase. Because its a major selling point for Media. Most salary income people read both local language and English news papers and watch news TV as well.

During the past 20 years since 1991, I have not seen a single story or article in the Media demanding the Income Tax tiers/slabs be tied to Inflation Index of each year, as how much it would be increased or decreased.  And free the Finance Minister from this exercise and save his time each year.  Amend the Income Tax acts to make this change and CBDT can issue circular each year adjusting the Income Tax slabs of that year, adjusted against the Inflation Index of previous year!.

Is this not do-able? Wouldn't this be a direct path to a Developing nation? What good the Harvard educateds are doing to India, when they couldn't even achieve this small progress??