Service Tax increased from 15% to 18% immediately after passage GST bills.

The cash starved Modi administration, has simply raised Service Tax from 15 to 18% w.e.f. July 1, 2017, the date GST comes into force indicating many more tax increases to follow. Inflation would become run away and poor & lower classes will be hard hit. No explanation or justification for this steep rise. All the time prior to passage of GST bills - Modi, Jaitley & Co maintained that consumer prices will come down and simultaneously govt revenues will go up due to GST pushing up consumerism, but now after these bills are passed Modi & Jaitley made somersaults by announcing service tax steep increase through the mouth Revenue Secretary. This indicates their mismanagement of nation's economy, least regard for laws of the land, misuse of discretionary powers vested with executive.

The following are remedial measures to curb executive power abuse:

• No expenditure shall be incurred nor tax shall be levied without prior legislative approval.
• The only exception could be while dealing with war like situations or natural calamity or disaster relief operations.
• Budgets must be realistic and deviations must be quantified, explained and justified.
• Any additional expenses or levies must be in public interest with justification & reasons fully explained and must be based on experts detailed studies and reports suggesting such expenses or levies are in the best interest of nation as a whole especially poorer & rural people.
• Additional levies during middle of the year just to fill revenue & expenses gaps must be prohibited. Higher tax compliance and reduction of wasteful & expenses should always be explored first.

Democracy in its true spirit is rule by people.

Autocracy is rule by a single person with absolute powers.

My View:

Modi attempting large scale fiscal reforms only to appease FIs will only disturb on going economic activity, create confusion & chaos and could lead to economic destruction as well. Modi's aggressive attempts devoid of merit & justification only indicates his lust for propaganda and playing wild gamble without understanding or mitigating risk of what he is doing and how it will impact common man is nothing but suicidal for the nation's economy. Sanity of mind must prevail to ensure ongoing economic activity is not disturbed or destroyed and confusion & chaos must be eliminated no matter what it takes or costs. The prime principle of democracy is that no innocent person should be troubled for what ever is being done in the name of reforms and for intangible & unquantifiable future benefits, must never be ignored. Needless to say that Modi's wild dream of turning 'under developed India' with 120 crore population into a 'developed nation' by 2020 is simply unachievable and hurry will only end up in confusion, chaos & destruction.