One nation, one poll

• There is no question that 'One nation, one poll' will save lot of money and grant freedom to elected representatives to behave or misbehave as they like for next five years. But there is much more beyond that. It is something synonymous to 'One nation, one language' and 'One nation, one religion', with very dangerous undercurrents that threatens unity and integrity of India.
• If Lok Sabha and Assembly elections happen to coincide, it is a natural process. But if it is imposed only to reduce the number of elections and cut costs, it is highly undesirable, because it privileges monetary concerns over democratic principles.
• Frequent elections provide momentary employment, boost domestic consumption, as also prevent transfer of power to a single entity due to a popularity surge that could help annexe both the state and central rule through the dual election filter.
• There is a provision in the Model Code of Conduct for the government to consult the Election Commission to take any useful policy decisions, without interfering election outcome, which is hardly used by any of the governments for political reasons.
• The slogan “one country, one election” is misleading. The Constitution recognises the existence of 29 States which have a constitutional status of their own in matters of elections and government formation. But this slogan deprives both centre and states to go in for mid term polls even for genuine and valid reasons.
• The seeming intention is to force all states, and all local bodies & panchayats, not only seems impractical but also a step in the direction of moving the country towards becoming a unitary state rather than a federal one that the constitution envisages.
• If in a state election, result is hung, definitely president's rule can't be imposed for next 5 years since next elections are that much far away and no chance for mid term polls. If that state goes to mid term poll, the new elected state assembly will have truncated term of less than 5 years till the date next general election. This is gross violation of constitutional provisions which is undesirable.
• There would be no interim option to overthrow if the incumbent under performed, as voter power is limited to being king-for-a-day in the lustrum. On flip side, frequent elections or bye polls deter the incumbent ruling parties from under performance and misbehavior.
• The issues influencing voting pattern for parliament, assembly and local body elections are vastly different and simultaneous polls will only blur the issues and the party having advantage in national arena also gets voted in state & local body elections which is fundamentally misleading & undemocratic.
• If simultaneous elections were to become a reality, it would go against the political diversity which is essential for addressing the social diversity of India.
• The total cost saving of about Rs.10,000 crores, once in 5 years, for central government with an annual budget of over Rs.20,00,000 crores is not a problem at all.
• Like earlier Modi's adventures, this one too might not work for Modi simply because the intention is not for doing any public good but is for narrow minded self aggrandizement. 

In a democracy, every issue has far reaching effects and unintended consequences that hurts lower classes most. Nothing can make a rich man bankrupt or a beggar. Demonetization and GST hurt the poorest most. Rich will sustain just by spending some bucks. By oath PM Modi must rule the nation within the framework of constitution and existing laws. During first two years, he went on roaming the world delivering passionate speeches and our economy was reasonably good. He initiated reforms with selfish intention of 'name & fame' and the nation plunged into economic distress and there is no way it can be halted. He would have done a great service to nation had he not done anything in the past three years. Anyone, including Rahul Gandhi or Manmohan Singh, will do better than Modi. That is what Modi has proved to the nation in the past three plus years in no uncertain terms.

Jaitley: Take plunge or do nothing at all?

• India tax to GDP ratio is 16.6% compared to 21% in emerging economies and 34% in developed countries.
• But those nations provide excellent quality of governance and welfare measures with corruption at ground level unheard. Where as in India, there is such thing called governance in rural areas and in towns and cities it is mostly confined to catering services to upper classes.
• Welfare activities especially in education, healthcare, drinking water supply and sanitation sectors are at their worst. 
• Corruption bleeding the whole nation even 16.6% tax is unjustified. More tax compliance will only make rogues much richer while poor will remain poor.
• In a large & diverse nation like India, GST undermines federal polity of constitution leaving states hitherto financially autonomous to fund their activities depend on centre for funds. Their ability to extend help to people during natural calamities will also gets diminished. That is the reason why USA has not adopted GST.
• Indian version of GST with six slabs (0 to 28%), multiple tax rates for the same item, additional cesses as high as 290%, complicated tax credit procedures, with important items like petroleum products, alcoholic beverages etc excluded, it is not GST at all. It is simply improved version of VAT. The opportunity is squandered away by Modi & Jaitley. 
• Among the virtues of all classes of people in India, tax evasion and robbing government money are predominantly prevalent. No one really thinks they are offences and unethical. Given this mindset, people will invent several loop holes in GST procedures and its effectiveness without co-operation of people will be insignificant.
• Plunging with game changing tax reforms like GST roll out, without IT readiness, databases not up to date, and with out creating awareness even among enforcing officials is nothing but insanity and resultant chaotic conditions are most likely to pull down our precarious economy. 
• Modi, Jaitley & Co haven't learnt any lesson from 'failed demonetization 2016' which costed nation more than Rs.150,000 crores and erosion of GDP growth by 1.5% which troubled everyone (especially poorer classes, informal sector and farmers) missing all its intended goals and nation is saddled with unintended consequences like expensive cashless transactions.
• More importantly Modi & Jaitley did nothing during first two years except fudging economic data and trying to lobby for ratings upgrade from 'near junk status' which was refused citing high levels of national debt and mounting NPA's by public sector banks.
• Modi & Jaitley, who opposed Congress sponsored better version of GST six years ago citing states autonomy compromising and violation of federal spirit of constitution, rolled out degraded and mangled GST hurriedly only to please FIIs and World Bank for ratings improvement. Otherwise there is no reason to do this way had they had any sense of realities of India.

Tax policy is as good as it is administered

My View:

Human trajectories doesn't change so easily. As long as people and enforcers are not honest to the nation, GST will also not give desired benefits similar to that of VAT & MODVAT some ten years ago, which failed to change anything. Incidentally in the name of GST much is publicized of simplicity of indirect taxation, compliance and ease of doing business without really doing any research or testing on the ground reality. Hence results could be very different. It may take over an year for stabilizing with GST during which period nation will face supply chain disturbance, artificial shortages, inflation, loss of jobs, and positive results could be expected only from third year on wards. Like 'failed demonetization' brunt will be borne by poorer classes, informal sector and agriculture while other well to do classes will  remain less affected. After two years several global & national economic factors will determine the state of economy and benefits of GST will never be known accurately. Instead of undertaking high risk whole sale reform with unknown results, it would have been wiser to identify and eliminate flaws in the existing taxation system itself would have been much easier, less riskier, less painful and more beneficial. Modi & Jaitley introducing GST a constitutional amendment bill as 'money bill' in Lok Sabha depriving Rajya Sabha its rights and privileges is a proof that the Constitution and the rule of law meant nothing to them, who are just third rated politicians not statesman. I suspect Modi's deep desire to go down in history as the greatest tax former, with eyes on 2019 elections, is the real reason. Sanity prevailing, he wouldn't have done this type of disturbing adventures at an overall expense of Rs.100,000 crores at the least, with unknown results. Another thing is that Modi & Jaitley are hell bent on destroying informal economy which provides livelihood to large number of uneducated and unskilled people but contributes very less in taxes and and take care of only cash cows i.e. formal sector which employs only 10% of people that too educated and skilled. These buffoons doesn't know that formal sector is hugely supported by informal sector for all their needs. How many times Modi will prove himself as a demagogue and worst economic manager of the nation?