Social security

Social security proposal

  • A Social security identification (SSID) is issued to every Indian Citizen.
  • To begin with the beneficiaries of the Social Security Allowance Scheme will be all adult citizens of India beneath the poverty line.
  • For every deserving adult, a fixed amount (linked to DA), Social Security Allowance, is credited per month into a unique bank account linked to the SSID - Say Rs.1500/ pm -- Based on Food (Rs.700/-) + Shelter (Rs.400/-) + Clothing (Rs.200/-) + Health (Rs.200/-).
  • Government will remove all non-merit subsidies thus freeing up revenue to pay the Social Security Allowance to the deserving citizens.
  • All Social security allowance beneficiaries can get credit of Rs.50, 000/- (upper limit) from banks.
  • Restrictions to ensure correct usage

Calculations

  • In first phase, scheme will be implemented for people below poverty line.
  • Number of people below poverty line (monthly income below Rs.300/-) is 30 Cr.
  • Total monthly expenditure = Rs. 1500 * 30 Cr = Rs.45,000 Cr.
  • Total yearly expenditure = Rs. 45000 Cr * 12 = Rs.5,40,000 Cr.
  • Excluding current expenditure of Government over subsidies of - Rs. 1,00,000 Cr, additional yearly expenditure will be - 5,40,000 - 1,00,000 = Rs. 4,40,000 Cr.
  • Considering current national income of Rs. 30, 00,000 Cr. It comes out to be 15% of national income.

Today

  • While a limited section of the population is enjoying the opportunities and benefits of globalization, a huge mass is unable to survive with dignity.
  • There is the undeniable chasm between the Haves & Have-not's, being widened by the pressures on the national economy due to globalization.
  • The consequences of this extreme socioeconomic disparity are on the increase (farmer suicides, rise of naxalism, terrorism, divisive tendencies, weakened law and order, rampant corruption)
  • The governance at various levels is unable to care for the really downtrodden, primarily due to lack of revenue.
  • Noble intentions of Social welfare, even well-meaning laws (for eg. Child employment related) can't be brought into reality.
  • At the bottom of the socioeconomic pyramid, there is a very limited purchasing power available. The various subsidies do not reach the intended beneficiaries. All such social welfare schemes tend to get bogged down by corruption. Also these indirect schemes do not address the crippling reality of inadequate capital/credit supply to the poor class of the economy.

Effects of social security proposal

  • Immediate answer to farmer suicides.
  • No fight for existence will lead to decreased rebellious tendencies, extremism and increased peaceful creativity.
  • Increased credit availability to last citizen – this is the real availability of micro-credit.
  • Decreased corruption opportunities will mean that the Benefits of social welfare schemes reaches its destination.
  • Increased use of banking system & increased credit registration & establishment of credibility of every citizen.
  • Increased money through banking system across the nation
    Increased purchasing power implies increased demand for goods. At the first instance more than 30 Crore consumers of basic needs added to marketplace.
  • This will lead to increase in demand and hence increase in employment
    Increased Purchasing Power & funds in rural households will mean increased desire and ability for better homes. There will be a boom in rural construction. This will lead to benefits like decreased homelessness, increased demand for steel/cement & increased employment.
  • This will decrease the disparity of growth rates in rural & urban areas
    Decreased migration to cities from hinterland, increased opportunities in rural area. This implies decreased pressure on urban areas and will in turn also lead to increased quality of life in cities.
  • This will lead to balanced development of the entire nation
    Basic quality of life is assured for every citizen. Hence India can truly be called a Developed nation.
  • Increased economic well-being will be the focus & reduction in social / religious tensions.
  • Increased implementation of child welfare laws & schemes.

Empowering Democracy

Implementation of Arthakranti proposal. It’s Effects are:

  • Enough revenues with government to make legal provision of funds for political system.
  • High valued cash transactions difficult.
  • Increase the use of the banking system.
  • Effective taxation system leading to eradication of black money.

Provision for funding of the political system.

  • Funding of the political parties based on a per person amount for the entire population for a five year period. Say Rs.100/person.
  • Total population is to be considered while making this provision.
  • The actual fund availability will be in proportion to the actual voting percentage.
  • This funding will be available only to Registered political parties securing more than a certain minimum percentage of votes cast.
  • Sample Calculation for funding political parties
    • At the Central Level:
      • Total provision for the entire population for the period of 5 years - 110 Cr * 100 (Per person Amount) = Rs.11000 Cr.
      • Provision per year – Rs.2200 Cr.
    • The total Amount available in proportion to a total valid votes percentage - Say 60%
      • Amount available for 5 year period- 11000 * 60/100 = 6600 Cr.
    • At the State Level:
      • State population say 10 Crore.
      • Funds provision for 5 year period = 10 Cr * Rs.100 = Rs.1000 Cr.
    • At the Local level:
      • Population of the urban areas is say, 10 Lakh.
      • Funds provision for 5 year period = 10 L * Rs.100 = Rs.10 Cr.
    • Actual funding will depend upon the total percentage of votes cast.
  • Giving healthy monthly allowances to the elected representatives.
  • The proposal for allowance of elected representatives -
    • For MPs at Rs 10Lakh/month.
    • For MLAs at Rs 5 Lakh /month.
    • For Corporators at Rs. 1,00,000/month.
    • For Village Development Officer at Rs. 10,000/month.
    • The spending with these provisions will be -
      • At the central level -- 785*10L*12 = 942 Cr against a projected revenue of 5 Lakh 50 thousand Cr.
      • At the state level (e.g. Maharashtra) –
        366*5L*12= 219 Cr against projected revenue of 50 thousand Cr.
      • At the local corporation level (e.g. Aurangabad) –
        100*1, 00,000*12= 12 Cr against a revenue of 250 Crore.

Today

  • To run a democracy effectively, there is a need to have a healthy multi-party system, which focuses on the truly relevant issues and solutions to them. This needs dedicated talent, effective leadership, and adequate funds.
  • Unfortunately today the parallel economy is the main source of funding for the political system. Hence the Indian democracy, at levels, is at the mercy of this black money power.
  • It is easy but incorrect to say that, “This is the state of affairs as all politicians are corrupt”.
  • The fact of the matter is that even (nearly) 60 years after our political independence, we have not found ways to fund the political system through legal, governmental resources.
  • The increase of criminalization of politics is also a direct consequence of this state of affairs. Politics is not looked upon by most of the “talent pool of the country” as a vocation of choice due to this reality. This makes a bad situation worse.
  • A & “vitiated political system” has direct negative impact on the law & order, social security and governance systems of the country.

Effects of empowering democracy proposal

  • Assured clean funding will mean decreased dependence on black money. This will lead to decreased dependence on criminals.
  • Politics can be truly professionalized as people with the talent and dedication will take it up. This will in turn mean that politics will be focused on real issues & national interests.
  • Since the funding to a political party is determined by the percentage share of votes cast, and there is a minimum cut-off limit, there will be a decrease in importance of local parties in national politics. This will lead to increased stability of government. This will lead to improved functioning & decision making.
  • Improved governance and improved law & order will be a natural outcome.
  • Percentage of votes determines the funding therefore political game playing will decrease & focus on national issues. This will lead to an empowered democracy.
  • Increased presentation of issues and policy choices will have to be done by all political parties. As a result the general population will get educated of real issues and cast votes accordingly. This will lead to an empowered democracy.