Voting The BJP to Power Is Not Taxing, But Will Pinch The Public Purse

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It will not tax you to vote the BJP to power, but it could cost the treasury at least Rs 50,000 cr. The BJP's political manifesto, released after a gap of 11 years - because the two in between were the agendas of governance of the NDA - reads like an advance copy of the Budget it would present if voted to power. In the past five years, the UPA government has pursued tax and spend policies. Former finance minister P Chidambaram had a fetish for new taxes whether fringe benefit tax, securities transaction tax, or the just abolished banking cash transaction tax. The BJP seems to be believe in spending without taxing. By proposing to raise the tax free limit to 3 lakh rupees a year, the BJP will move about half the current number, that is 1.5 crore assessess, out of the tax....

India's Experience With PPPs: Private Gain At Public Expense

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The BJP and the Congress may differ on privatisation of state enterprises, but they both agree that public private partnerships are necessary in infrastructure. India's experience so far with PPPs, however, is that they are about private gain at public expense. Going by the example of Delhi and Mumbai airport projects, there seems to be no sanctity to contracts. Both the GMR and Reliance combines have been allowed to charge fees from passengers for 36 months, amounting to at least Rs 3,370 crore to finance the development of these airports. Passengers are essentially paying for a non-service as these airports are still work in progress. They are making up for the failure of the developers to arrange money. They are investing without having the rights of investors. The global economic turmoil and collapse of the property market have made government bail-outs necessary, but these should come with tough....