29th Nov 2018
India’s taxes and their breakup
Loknath Rao has provided the following info.
Indias total tax revenue – central and state 2016-2017 = 400bn$ [Source needed]
Total military budget, incl. paramilitary and reserves – 40bn$ [Source needed]
Total Police and correctional institutions Budget all states – 10 bn$ [Source needed]
Total Judiciary budget all India, courts and their staff – 1 bn$. [Source needed]
Just about 50bn$ for the basic functions!! about 12%.
Assuming this needs to be quadrupled that it must, esp. police 10x and judiciary 20x, that makes it 200bn$ pa. That can finance a couple of wars with Pak and China and pay for insurances of all the armed forces and polices valued at 100 times their annual income + their pensions.
Of course there are other expenses of running the ministries and related research but that isn’t in double digits.
So at a third of present tax rates, the Govt. can still run the country.
Then there is revenues from so many state run PSUs funded by Arun Jaitley’s benevolence that I am not counting. Their assets are in excess of 3.0 trillion dollars if I include Indian Railways too. [Source needed] That alone can earn enough incomes to make this country completely tax free.
Yet we run the world highest budget deficit at 34%. [Source needed]
Now this analysis needs to be confirmed with appropriate citation of sources.