Economic and Employment Method of Gopal Maheshwari

 Present covid-19 virus hitting all countries and economic activities become slow so all governments tax revenue decreasing heavily so governments are facing problems on expenditures side where many expenditures are fix  and others are essential if government cut these expenditure then recession will more effective in future and disturbs all stake holders in the countries. Thus all governments are borrowing huge money to manage expenditure. What will the outcome of this step in future that governments have to pay money with interest so after 5 to 10 years governments need more tax resources to pay loans.

First this method is partial beneficial for economy.  Presently Quantitative easing programme adopted  by developed countries to meet up expenditures & developing countries also waiting for more foreign currency inputs so they can print new indegenous currency. This programme is unclear about future earnings of public. 

Second for boosting economy mostly all countries banks are lending money individuals to business entity. It's good but in future if he weren't earn more money to pay loan amount then what will the future of the banks.

So I have created a new method that how can public will get more employments & more regular passive income in future. 

Mostly all countries can provide new employments to their 1.5% to 2% citizens by Economic and Employment Method of Gopal Maheshwari. These new jobs are permanent type and unaffected from recession and company failure. Income may be up & down but jobs are secure.

This method will solve various problems like tax evasion,  subsidy leakages, corruption, black money and NPA ( non performing assets = bad loans). 

Needs four steps to boost economy ---

1. Need to change banking bad loans solutions. Stressed company 30% bank loan convert in equity preferential shares this will reduce interest cost & sell those preferential shares in part to private equity or investment firm.

2. At the time of stressed enterprise auction use my method - After auction bidding remain amount convert in preferential shares so creaditors can sell their shares to other companies.

3. Use gold as side currency to boost dollar. Accept deposit & lending in gold termology as 100 gm gold deposit interest 2% and lending interest 3%. Apply this method in banking system.  

4. Use Economic and Employment method of Gopal Maheshwari for  millions new employment generation.

Indian perspective jobs creation it's applicable to all 111 countries in the world.

  I have posted numbers of employments per country wise in my previous blogger post separately. 

      Our country needs a collective decision by center and states governments to solve various problems unemployment, tax evasion, subsidy leakage, black money and trade deficit.

 Central govt is continuously taking radical decisions for radiant future of India. In this series I am presenting my new theory for employment this will change future of India. Central and state govt. can combined provide 20 million new employments with minimum budget expenses.

 Employment Theory of Gopal Maheshwari- 

My last 16 year educational and occupational experience I have reached at this conclusion that 20 Million new employment will easily  generated in India. Economic activity will increase and tax collection will also increase. 

Thus loan and Interest Repayment will be pay by govt easily in 2020-21 near about 12 lakh crore of only central govt. and state govt Interest and Loan Repayment labiality also 30% to 50% of the budget. Thus need a boom in economic activity.

Employment Theory of Gopal Maheshwari -

1- Central and state can provide combined 20 million new employment to literate people.

2- These all 20 million jobs are permanent type. These jobs were not affected condition of company shut down or recession period problems.  

 

3- Central and state government have not needed to pay extra salary and allowance also then they will get benefits of progress in future. 

4- 20 million new employees can earn 15 thousand and more easily in month.

Gopal Maheshwari Employment Theory's benefits - 

1- 20 million new jobs will create in Indian economy.

2- IT Sector will get Boost while now problems in USA visa concern.

3- Digital transactions will increase sharply.

4- Fiscal Deficit will reduce.

5- System of Subsidy will be simplified and regulated.

6- Tax evasion will decrease sharply.

7- Unaccounted Money transaction will reduce.

8- Economic growth will increase and investment cycle will started.

9- Profitability of companies will increase and bank NPA will recover sharply.

10- Trade and Current Account deficit will be reduced and possibility of Current Account Surplus.

     11-Present subsidy system have two big problem – (i) Leakages  (ii) Prope identity of beneficial people, Company and sector this problems will solved.

12- Govt. can know actual conditions of poverty.  Thus Targeted people Direct Cash Transfer process became easy.

Conditions of theory–

1- Minimum GST must be 1% it Replace 0% commodity group slab.

2- Percentage of subsidy of Tax collection must be fixed 20% or 25% or 30%.

3- Pattern of subsidy distribution will be changed & became Individual  or enterprises last user of the Country.

4- Highest rate of interest must be fixed 18% for both buyer and lender. Any person and financial institution bank & others.

5- Royalty of Intellectual property of Gopal Maheshwari Employment theory for per employment conveyed 50%-50% by center & state government as per rules.

1. GST was implemented from 1 July 2017 and before decision of note ban result is seen average in various parameter. We have not proper export infrastructure due to lake of investment. Government could not invest large capital due to his fiscal deficit & private sectors do not take interest for new investment due to improper economic policy.   

2. New indirect tax subsidy scheme replace both subsidy way commodity subsidy & S.M.E. industrial subsidy and after two year it also replace direct cash transfer scheme.

3. L.P.G. subsidy, fertilizer subsidy, kerosene subsidy, food subsidy, export subsidy & all other subsidy are replaced by new indirect tax subsidy.

4. This new indirect tax subsidy scheme brings efficiency in Goods & Service tax and Direct tax code.

5. We can apply this scheme without increasing tax rate. Only restructuring tax system & internal tax policy. Govt. will get increased tax revenue amount (direct & indirect tax).

6. This scheme has no necessity for separate fund available like present subsidy system because which indirect tax government collects some tax part of that revenue should refundable.

7. This scheme affects directly consumers because consumers get his tax part as subsidy. Present subsidy system has two big problem leakage & proper identity of beneficial people.

8. It is must need for one national identity for all people & need to make a special identified indirect tax account in which all indirect tax will deposit paid by business men / consumers like present T.D.S. system. A/c holds by indirect tax department.

9. It is must need for one national identity for all people & need to make a special identified indirect tax account in which all indirect tax will deposit paid by business men / consumers like present T.D.S. system. A/c holds by indirect tax department.

10. Indirect tax chain (paid tax) should need for all business men & corporate firm. Indirect tax should deposited in special identified indirect tax A/c. Indirect tax transferable (forward) to buyer(wholesaler, retailer, consumers) and till forwarded when it does not reached to last domestic consumers.    

11. Tax chain means which GST and indirect tax paid by Top to bottom (end users) should deposited in special identified indirect tax a/c in 30 days of sale or day of payment receive.

12. Aadhaar card became indirect tax A/c no. for domestic consumers and business& corporate firm’s P.A.N. card / T.I.N. number / Sales tax number as decide by government.

13. All business men stock tax chain (paid tax cost) should deposit by government in indirect tax A/c because government have already received those indirect tax.

14. Agricultural sector also became organized sector, which indirect tax paid by farmers on diesel, fertilizer and agricultural equipment also deposited in special identified tax A/c. these tax are forward as sales tax on agri commodity.  

15. Tax on commercial expenses (which expenses directly not connected to purchase goods) could fulfill stock tax chain (paid tax cost) deposited by government. Thus government has no problem for implement this system.

16. Total unorganized sector automatic convert in organized sector because indirect tax forward, indirect tax deposit and indirect tax subsidy system make people aware. They will take proper tax bill for subsidies receive.  

17. If thievery, burning, lake after finishing, rust, flood and any other reason goods loosed their paid tax not loosed because deposit indirect tax forward on condition of goods sale.

18. business get stability, if commodity market rate down then tax pay is on fact rate, less commodity rate indirect tax is deposited in indirect tax A/c & does not forward. Thus investment increase sharply business men have no fear about tax system of govt. side because indirect tax deposit in A/c is used as indirect tax pay to buyers.

19. All people take proper bill then govt. tax revenue increase too much. Govt. get tax timely & do more work for public welfare and world status of country.

20. Indirect tax subsidy gives direct benefit to people. It became real & genuine identity for B.P.L. (below poverty line) people because this indirect tax subsidy scheme depends on expenditure slab.

21. Indirect tax subsidy depends on purchase power capacity so actual G.D.P. will disclose and indirect tax revenue increase and this effect also seen on direct tax. Subsidy fund will save which government borrow on interest.

22. Commodity price became more competitive. Now which Government Company belong to subsidy commodity (like fuel, gas, fertilizer) live in under pressure and private companies are not interested due to subsidy matter. 

23. Indirect tax subsidy scheme is one solution of many economic Problems like Fiscal deficit, Recession, Subsidy fund management, Inflation, Tax thievery, Black money, Corruption and make better investment sentiment.

24. Opening of Indirect tax A/c number take all identity proof. As voter Id, driving license, ration card. In which one identity is main proof and others are concern proof.

25. Now all people give indirect tax and also get benefit of subsidies but lake of proper system we facing too much problems. New scheme give us proper satisfaction.

26. This indirect tax subsidy only pays to consumers or end user business entity. Indirect tax deposit & tax forward scheme for farmers, consumers, business men & corporate firms.

27. Exports goods indirect tax subsidy give to importer country business men 30% to 100 % of tax rate. Then he encourage for more purchasing & trade deficit controlled.

28. Public take interest to open and use bank account due to new scheme. Thus we can use regressive tax as progressive tax this is a scheme Indirect tax subsidy.

29. Without any political, social, economical problem we can apply this new system. 

30. After financial year government should pay total indirect tax subsidy to beneficiary. This scheme we can apply individual or joint family but Aadhaar card must need for beneficiary person. 

31. Total expenditure calculates in indirect tax A/c. If expenditure more than three lac per year P.A.N. card must compulsory for individual. 

32. Income tax must apply on agricultural income and add it in general income if states objects then refund to state government for farmers welfare.

33. Many commodities are out from indirect tax criteria but people pay indirect tax at processing time (raw to finish). We can recycle this tax and thus sales tax can apply on those things.  Now India GDP Purchase power parity is  projected   9.25 Trillion dollar in December 2020 in rupees term 650 lakh crore.

34. Public take interest to use bank account due to indirect tax subsidy.

35. Total govt. and private expenditure & project must need indirect tax chain.

36. If tax chain implement then corruption investigation will complete easy, short time, cheap & exact fast result.

37. If indirect tax chain forward scheme apply in India then PDS (public distribution system) will run systemic, transparent & for only beneficiary.

38. Govt. social program implement properly because indirect tax chain forward scheme make them more accountable for target.

39. Indirect tax chain forward & subsidy scheme make possible to investigate black money & cash transfer without tax.

40. Any commodity Mandy rate + fare +10 % is the business in India now many time FMCG indirect tax reached near 20% - 30% then how can we aspect that they will get complete tax.

41. Corporate cash must deposit in bank account .Give interest on current account more than 1 lac and pay interest 1% per annum with income tax exemption. 

42. Total business construction, tender, home loan, govt. and private bill & new creation must need tax chain. 

43. Tax chain subsidy get consumer bimonthly. Consumer can take loan at deposited tax subsidy 80%-90%. Business firm also take loan on deposited tax chain 50%-60% if they are end user.    

44. Tax chain means which GST and indirect tax paid by Top to bottom (end users) should deposited in special identified indirect tax a/c in 30 days of sale or day of payment receive.

Other economic issues 

1. Inflation increase both circumstance economic boom and recession due to black money in circulation. Government should allow using gold as side currency in economy but this is not calculated in government statistics data. 

2.  If 20% of 25000 tons gold holds by households in India  can used in market as currency for productive ways

.

3. Gold should used as Deposit & lending in market standard weight as 1 gm. to 1 ton.

           Gold saving account: - If saving A/c gold deposited minimum 2 Month then interest will give. Gold interest gives in gold. Gold Interest 3% per annum as 100gm gold yearly interest 3 gm gold. Interest rate may be up & down as per demand supply.

4. Gold current A/c:- If current A/c gold deposited minimum  one Month then interest will give. Gold interest gives in gold. Gold

   Interest 1% per annum as 100gm gold yearly interest 1gm gold.

5. Gold fix deposit:-In gold fix deposit minimum time period 6 Month to as depositor want long time. 6 month gold F.D. interest Rate 4% per annum, 100 gm gold 6 month interest   2 gm. If 1 Year gold deposit & interest 4.5% per annum then   After 1year 104.5 gm gold maturity. Gold interest gives in gold.

   Gold depositor can change gold in rupees term at maturity time.

     

6. When gold deposit increase then we get extra deposit of gold. 

   We can Use extra gold deposit to lend in market short to  Medium time loan. Gold term loan interest takes in gold. Interest  rate 6% per year. We can lend gold to jewelers & any person 

    who want to take it On mortgage. After 1 year 100gm interest will be 6 gm gold. We should provide both choices. Debtors can take it

    Gold & rupees Term on GFIR.

    

7. Due to gold deposit & gold lending more gold available in Market. Gold tax revenue will increase and no necessity for more Gold import thus trade deficit & current A/c deficit balanced.

8.  Gold deposit & gold lending makes new concern for our  Economy. Thus gold & rupee both used as currency transaction.

    When central bank will continuous printing new currency & issue In market then inflation increase & gold saving in banks will  Decrease. 

  9.  Gold deposit will not get properly when new currency Supply system not approved. 

When Public will get income source then gold 

Deposit comes to banks. This deposit bank can use as lending.

    10. Gold deposit & gold term loan (gold lending) should regulated By central bank as monetary policy. Gold repo rate, gold Reverse repo rate, gold deposit scheme and gold lending rate will be Regulated. 

11. Due to these gold steps gold treasury (stock) increase at central Bank then economy will get revive properly.

12. Loan inspections: - Which is currency flow by banks to debtors Should be examine & inspect properly which purpose loan given.

     Purpose will completed & tax revenue also generated.

 Banks are lending Home loan, industrial loan, agricultural loan & many others loan.

13. In home loan it must need that total construction expenditure  Bill should be taken. Indirect Tax chain in the bill should be Deposited in indirect tax A/c. govt. can give subsidy.

14. Agricultural loan must used for only agricultural expenses. Indirect tax chain on their expenditure show in indirect tax A/c.

      This tax forward as sales tax.

15. Industrial loan & other mortgage loan should be more Transparent. Construction expenses bill should be taken & Indirect tax in their bill should deposited in their indirect tax A/c. They can promote as tax subsidy or tax forward.

16. Pass on loan person / firm to person /firm must record properly & on their use apply indirect tax collected properly in tax A/c.

18. All public company who collect capital from capital market as Public capital (I.P.O. or direct deposit). They must invest 25% Of their capital amount in fix assets or precious metal and those asset must not give as mortgage & take loan prohibited. This is likesecurity Keep to regulator.

19. Which F.D.I. & F.I.I. could not give proper tax certificate Take 2.5% entry tax & 2.5% exit tax.

20. We are now depending on F.D.I. & F.I.I. for dollar term investment because our current account deficit is very high due to trade deficit.

21. We have not proper export infrastructure due to lake of investment. Government could not invest large capital due to his fiscal deficit & private sectors do not take interest for new investment due to improper economic policy.   

Super rich tax 

Which people has fix assets + mobile assets are more than 5 crore should surcharge 2%.

 

Gopal Maheshwari  

(M.A. – Economics)