LPG SUBSIDY AND AADHAAR CARD-A SKEWED CONNECTION!

The so called Direct Cash Transfer Scheme (now being rechristened as Direct Benefit Transfer, (DBT) is going to be one of the greatest scams this country has ever seen if many observers who have been warning the government of India not to go ahead with this madness are to be take seriously. With every citizen becoming allergic to every government agency in this country due to the insensitivity, callous disrespect to the sufferings of the citizen, inordinate delay in delivering services which are their right under the constitution and anarchy inherent in the system, will DBT be different? Even for reddressal of a simple complaint it takes ages and umpteen number of pilgrimage to the cozy office of the "Sarkari Babus" to get an attentive ear, let alone solving the same! How can DBT be different though tall promises are being made on the eve the forthcoming general election? The UIDAI which normally can be a good thing for a country like India for a citizen to prove his or her identity, the way it is being promoted raises many uncomfortable questions! Here is critic's commentary on DBT which is really incisive and eye opening.   

Is the DBT scheme driven by some such extraordinary popular (or perhaps unpopular) delusion? It would appear so. Alternatively, it could be legerdemain. The latter appears more likely. The 'madness of crowds' could be sensed in the queues that line up for enrolment in UID fearing loss of LPG subsidy. The prophecy of the UIDAI chief that the 'voluntary' UID, "would become ubiquitous" and "service-providers may ask for it" is being fulfilled right before our eyes. Voluntariness of UID has become a cruel joke. The government / UIDAI justifies or rationalises DBT using Aadhaar numbers linked to bank accounts  saying that crediting subsidies into bank accounts of domestic LPG consumers would prevent leakages of subsidies. This again, is an assumption without any 'aadhaar' (foundation). Subsidy leakages of the order of Rs 12,000 crore are sometimes bandied about, though no one has said how the figure was arrived at and why no action has been taken so far, if such large-scale abuse is a fact. Significantly, the minister for petroleum made no mention of Aadhaar in his speech at the launch of the LPG portal, but said, "the need to curb unauthorised use of LPG for commercial purposes has become acute." The LPG portal creates transparency, which would prevent unauthorised use of LPG. If so, what is the purpose of DBT?

Millions of people in this country are going to suffer because the so called electronic pay out towards subsidy is unlikely to work efficiently with hundreds of loopholes and "system failures" very often cited by institutions like banks for the delay to their customers. Where will the citizen go if the subsidy is not deposited promptly in his account in the earmarked banks? No where! Government may claim it has hot lines and toll free numbers for affected citizens to call and complain but past experience shows that these government phones are either dead or perennially "engaged"! Some people believe that the UIDAI is a simple ploy to reduce the subsidy burden on the government by default as many beneficiaries would get frustrated dealing with an unresponsive "babu net work", finally giving up on their eligible subsidy. 

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

TAXING THE FOOD-IS IT ETHICALLY AND MORALLY JUSTIFIED?

Taxation and other financial impositions by governments all over the world are borne by the citizens believing that the money so collected goes for developmental activities beneficial to the citizen. But this does not happen, especially in an over democratic country like India where silent tax players never ask the government about lack of development in spite of paying taxes at rates unbearable to many. On top of it natural resources like spectrum, coal etc are distributed at throw away prices creating huge financial scams, depriving the government the much needed financial inputs for various developmental activities. Added to this a small percentage of citizens, that too mostly from the salaried class who pay income tax while a bevy of taxes are "innovated", like sales tax, value added tax, excise duty, import duty, service tax, wealth tax, road tax, property registration fees etc to fleece the citizens. While all these are understandable, what is reprehensible is the tax levied on food and drugs by state governments making them more expensive. How can any one justify taxing a basic food like food grain which is the essential for any human being to lead a normal life. Here is a critique on this subject.

'High taxes, levied by major food grain growing states of Punjab and Haryana, have made the Centre's task of selling wheat at low rates in the open market difficult. The taxes, ranging from 4.7 per cent in Madhya Pradesh to 11.5 per cent in Haryana and still higher at almost 14.5 per cent in Punjab, are incurred by the Centre while procuring grains from farmers every year at a fixed minimum support price (MSP). It is difficult for the Centre not to pass on these taxes to consumers at the time of selling grains in the open market as then its food subsidy burden will further inflate. According to some estimates, around 10 per cent or Rs 7,000 crore of the total food subsidy in 2011-12 was due to state taxes and levies, which the Food Corporation of India (FCI) paid by way of levies and taxes to different states".

Government of India generates inflation index periodically and one is not sure how reliable these figures are. Still a major contributor to inflation is the taxes levied on every conceivable consumer material the government can set its yes on! How can the private vendors and shops can be faulted if they also indulge in raising the prices on their own. Look at the hotel sector which has seen price hikes to the extent of 100% during the last two years as they are not covered by the rule of compulsory MRP declaration. Even those covered under MRP regulations consumers have learned long ago that the MRP declaration does not serve much of a purpose because, till recently, consumer products industry has been practicing fraudulent means in keeping the price line steady but progressively reducing the quantity within a pack! A honest government if it has any consideration for the sufferings of its people must exempt all foods, especially the basic ones, from the purview of punitive taxation!  The excuse that federal government in India cannot prevent the states from imposing tax on foods is just an excuse which the citizens cannot accept.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com