Because the Sithanen flat tax has been taking care of that. In quite a splendid manner actually. As we've pointed out recently the associated toohrooh has already reached a trillion rupees. Which is equivalent to several years of GDP. Anybody who has studied up to at least Form III understands that continually growing at less than 4% -- that too in depreciated rupee terms -- instead of the 8% you promised will land you in very deep trouble pretty quickly.
We've seen our PM make a surprising visit to India before presenting his budget. The implementation rate in the public sector has slowed down. If the Metro Leger has been replaced by a watered-down version it's not because we have so much money that we don't know what to do with it. A special purpose vehicle has appeared and the debt ceiling will be amended. What do all these signs tell us?
We've seen our PM make a surprising visit to India before presenting his budget. The implementation rate in the public sector has slowed down. If the Metro Leger has been replaced by a watered-down version it's not because we have so much money that we don't know what to do with it. A special purpose vehicle has appeared and the debt ceiling will be amended. What do all these signs tell us?
Simplistic is Not Simple
The flat tax is simplistic. It's not simple. Your iPhone is simple. It's the product of deep thinking. No one said it better than a famous swami from Cupertino: “Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.” Of course you shouldn't use only the messing up of the tax structure to understand our predicament or to assess the skill of Dr. Calamity as Finance Minister for that matter. That would be quite unfair. You definitely cannot omit what he's done to our savings rate. That's another name for the multi-layered savings plan that many voters had crafted over several years if not decades. Until the bean-counter decided to blow it up when he started to build the facade of a low-tax jurisdiction. More on this later.