Is our tax money effectively used in India?

[ashokdeiva]

Every Indian citizen pays a percentage of his income as Tax to the central government beliving that the Government of India will increase the spending on public welfare in his or her locality to provide better roads, schools, etc.
Is this tax effectively utilized to the welfare of each of the state based on the contribution from each state or is the tax money from one state spent else where?

To my beliefe, the concept of Federal Tax is flawed in India, the Tax that we pay has to be split into two components, one a federal tax and the other a Local Tax. The Local tax should be directly deposited in the Tresury of the State Government so that the fund collected from one state is effectively used in the welfare/development of that state. The federal tax should be effectively used by the Central Government to run Central institutions like Army, Railways, etc.

This way we can be sure that the revenue generated on one state is used in development and welfare on that preticular state and is not spent elsewhere. This will also ensure that the efficiency of the local governance will be increased.

 

[angeldude13]

i don't think sooooo.new delhi's roads are more potholes than roads

 

[Kadamba]

Every Indian citizen pays a percentage of his income as Tax to the central government beliving that the Government of India will increase the spending on public welfare in his or her locality to provide better roads, schools, etc.
Is this tax effectively utilized to the welfare of each of the state based on the contribution from each state or is the tax money from one state spent else where?

To my beliefe, the concept of Federal Tax is flawed in India, the Tax that we pay has to be split into two components, one a federal tax and the other a Local Tax. The Local tax should be directly deposited in the Tresury of the State Government so that the fund collected from one state is effectively used in the welfare/development of that state. The federal tax should be effectively used by the Central Government to run Central institutions like Army, Railways, etc.

This way we can be sure that the revenue generated on one state is used in development and welfare on that preticular state and is not spent elsewhere. This will also ensure that the efficiency of the local governance will be increased.

Ashok, I think there is already such structure as you are talking about.Tax structure has clearly demarcated authority between Central and State Governments and local bodies.

Central Government: levies taxes on income (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax. State Govt : Value Added Tax (VAT), (Sales tax in States where VAT is not yet in force), stamp duty, State Excise, land revenue and tax on professions. Local bodies: empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc.

Hence I will split your question into 3 parts,

Is our tax money effectively levied in India?: I will say QUITE OK, since the structure is quite good, even though improvements needed in covering the loopholes used by tax evaders.
Is our tax money effectively used in India? I will say YES, since at the planning level, Govt. public welfare schemes are nicely structured.
Is our tax money efficiently used in India ?: Answer is certainly NO. Prime reason as everybody knows CORRUPTION.

 

[ashokdeiva]

Ashok, I think there is already such structure as you are talking about.Tax structure has clearly demarcated authority between Central and State Governments and local bodies.

Central Government: levies taxes on income (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax. State Govt : Value Added Tax (VAT), (Sales tax in States where VAT is not yet in force), stamp duty, State Excise, land revenue and tax on professions. Local bodies: empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc.

Hence I will split your question into 3 parts,

Is our tax money effectively levied in India?: I will say QUITE OK, since the structure is quite good, even though improvements needed in covering the loopholes used by tax evaders.
Is our tax money effectively used in India? I will say YES, since at the planning level, Govt. public welfare schemes are nicely structured.
Is our tax money efficiently used in India ?: Answer is certainly NO. Prime reason as everybody knows CORRUPTION.

Brother, my question is, is the money generated as tax from each of the states spent on the respective states or else where

 

[great]

Brother, my question is, is the money generated as tax from each of the states spent on the respective states or else where

Federal taxes can be spent on anything that central government deem important for nation. Although its center's decision, but states collecting more taxes have greater pull at obtaining those funds when compared to others.


And State taxes are used by state governments for welfare of their own states. No competition here.

 

[ashokdeiva]

Federal taxes can be spent on anything that central government deem important for nation. Although its center's decision, but states collecting more taxes have greater pull at obtaining those funds when compared to others.


And State taxes are used by state governments for welfare of their own states. No competition here.

I feel that to win the hearts of people in Manipur, NagaLand and J&K the government is spending too much out of tax paid from other states.

 

[angeldude13]

I feel that to win the hearts of people in Manipur, NagaLand and J&K the government is spending too much out of tax paid from other states.

they ain't spending a penny in the capital new delhi and u want'em to spend on nagaland,j&k and manipur.they don't care about us buddy.if they would have care about the country then we don't have faced such humiliation in international community.i know we indian people talk much and do less and same goes with me....

 

[ashokdeiva]

they ain't spending a penny in the capital new delhi and u want'em to spend on nagaland,j&k and manipur.they don't care about us buddy.if they would have care about the country then we don't have faced such humiliation in international community.i know we indian people talk much and do less and same goes with me....

did you actually read my post before you started typing, kindly read again. I have said that my money that i am paying as tax is not used to develop my neighbor hood but is being spent some where in J&K, Manipur and Nagaland by the C Government to which i am against.
I want my bloody money that I pay as tax to be used for the development of my neighbourhood.

 

[great]

I feel that to win the hearts of people in Manipur, NagaLand and J&K the government is spending too much out of tax paid from other states.

Oh well, Central government definitely has some misplaced priorities for sure. All the subsidy programs irrespective of which state should be termed anti national in constitution. These are aggravating our fiscal deficit further endangering our economy. If it were up to me I would provide as many incentives to Industry as possible as they are the bread and butter makers for any country.

 

[ashokdeiva]

Oh well, Central government definitely has some misplaced priorities for sure. All the subsidy programs irrespective of which state should be termed anti national in constitution. These are aggravating our fiscal deficit further endangering our economy. If it were up to me I would provide as many incentives to Industry as possible as they are the bread and butter makers for any country.

To my understand giving subsidies more than a limit to any industry is a cirminal waste of resources. The capital owners of the corporate sector do not exhibit a high level of social responsibility in India. For example a lot of subsidies where offered to implement ZEP(Zero Effuluent Plant) for the dying industries of Tirpur, TN but the subsidies where misused by the owners to buy BMW, Mersedes Benz, etc that now decorate the parking lot of most owners and non of them implemented the ZEP and caused a terrible destruction to the eco system, polluting a entire river and dam by discharging the effuluents into water bodies.

 

[Kadamba]

Brother, my question is, is the money generated as tax from each of the states spent on the respective states or else where

Please note that different sources of taxes (as mentioned in my previous post) will provide income for state government and central government. However taxes collected by state governments are entirely utilized for the state itself.

I feel that to win the hearts of people in Manipur, NagaLand and J&K the government is spending too much out of tax paid from other states.

I agree with you that central government is using the taxes collected from higher tax generating states to the lesser ones; But again this is the beauty of federal structure and we should have no objection for spending money to our sister states well integrated (Manipur, Nagaland) into our federal structure. J&K is different issue altogether, and I believe Central government definitely has misplaced priorities.

 

[great]

To my understand giving subsidies more than a limit to any industry is a cirminal waste of resources. The capital owners of the corporate sector do not exhibit a high level of social responsibility in India. For example a lot of subsidies where offered to implement ZEP(Zero Effuluent Plant) for the dying industries of Tirpur, TN but the subsidies where misused by the owners to buy BMW, Mersedes Benz, etc that now decorate the parking lot of most owners and non of them implemented the ZEP and caused a terrible destruction to the eco system, polluting a entire river and dam by discharging the effuluents into water bodies.

Oh I meant incentives without illegalities.

 

[ashokdeiva]

Please note that different sources of taxes (as mentioned in my previous post) will provide income for state government and central government. However taxes collected by state governments are entirely utilized for the state itself.



I agree with you that central government is using the taxes collected from higher tax generating states to the lesser ones; But again this is the beauty of federal structure and we should have no objection for spending money to our sister states well integrated (Manipur, Nagaland) into our federal structure. J&K is different issue altogether, and I believe Central government definitely has misplaced priorities.

I have a deep feeling down that its not only the misplaced priorities but also a poor handing of situation. The people of the states that fight for seperation are doing it because of our Government pushing them to a choke point. Armys role is important in keeping the order in place but too much of Army and powers like AFSPA are driving the people cracy that when a crime is commited by a Army men in the rarest case it get demonized by the locals. The Center should give more freedom or autonomy to these states rather than clutching them and offering them development. There are some tribes in Nagaland that want their old ways of living not disturbed by development.

 

[great]

I have a deep feeling down that its not only the misplaced priorities but also a poor handing of situation. The people of the states that fight for seperation are doing it because of our Government pushing them to a choke point. Armys role is important in keeping the order in place but too much of Army and powers like AFSPA are driving the people cracy that when a crime is commited by a Army men in the rarest case it get demonized by the locals. The Center should give more freedom or autonomy to these states rather than clutching them and offering them development. There are some tribes in Nagaland that want their old ways of living not disturbed by development.

Ashok, you can't have two India's with in India. One looking forward to development and other content with whatever it has. You have to decide which one you rather have. You cannot have both together as that would lead to huge income disparities, further pushing our country to civil war. These people are uneducated and do not trust the GOI of their intentions. God only knows, there are hundreds of valid reasons for it. But my point is when we have a fair policy, we need think of overall social development than giving into demands of ignorant and uneducated tribals. Its for their own good as well as that country's.

All these countries which constantly boasts of human right values, once had aborigines themselves who were brutally pushed aside to make way for development. We should also do the same except for brutally part. Education is key for all this.

 

[Kadamba]

I have a deep feeling down that its not only the misplaced priorities but also a poor handing of situation. The people of the states that fight for seperation are doing it because of our Government pushing them to a choke point. Armys role is important in keeping the order in place but too much of Army and powers like AFSPA are driving the people cracy that when a crime is commited by a Army men in the rarest case it get demonized by the locals. The Center should give more freedom or autonomy to these states rather than clutching them and offering them development. There are some tribes in Nagaland that want their old ways of living not disturbed by development.

Yes, I would say we need to strike balance between development and local aspirations by way of granting certain autonomy and handling the problems locally itself. Also we should not neglect the role of Police force's in handling local problems. Unlike dragging Army in every problem, a well trained, better equipped strong Police not only reduces the burden on army but helps to solve the problem locally; avoiding the scenario of brainwashing of youth with some perceived external threat.