The government is now embarking upon its new agenda for the improvement of economic conditions by doing a cut short in poll funding in elections. Some of the strict routes as seen earlier like demonetization was set to curb all the black money that was being circulated in the countries economy via gray routes. The government attacked this difficult and lethal activity by banning the currency immediately. The action was applauded across the nation and in the global media with some of the protests.
After which the Goods and services tax with its numerous benefits will try to tackle the issues of cascading effects of taxes currently being applied in the nation. Now the government is eyeing upon the poll funding which is the source of illegal money sourced from various unknown points.
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Arun Jaitley, Union Finance Minister himself denoted that, “For the last 70 years, the world’s largest democracy has survived on the kind of funding which really brings no credit to the democracy itself.” The finance minister has already has cut short the poll funding from |INR 20,000 to INR 2,000 which was done on the basis of cash donations. While a proposal has been done to consider the electoral bonds is in the pipeline.
The finance minister was very much positive regarding the demonization move and added that “I do feel that as a result of the combination of demonetization and GST, India’s tax to GDP ratio will rise.”
He clearly mentioned that the businessman who is against the GST is making it without any sense. He gave a reason in this fact that, “The indirect tax is being passed on to the customer, so why is the trader objecting? He is objecting because the volume of his business would be known and this time he will have to file tax returns.”
While talking about the change in the sequence of the financial year the Minister told that “We have already started a process of consultation where we have the report of a committee before us. It is not a matter in which the government has taken any decision.”
