In its manifesto released yesterday , Congress has promised to create 10 Crore ( = 100 million ) new jobs in next 5 years , if voted to power

Now , EC’s Model Code of Conduct tells political parties ,

” If you make any promise in your manifesto , you must also spell out , how
you are going to fund it ; how – and from where – you are planning to
raise the money to fulfill your promise ”

No such explanation / clarification in Congress Manifesto !

Only EC can say whether this is a blatant violation of Code of Conduct

Provided , BJP / AAP lodge a complaint with the EC

But BJP / AAP can do better than just lodge a complaint

In their own respective manifestos , they too , can promise to generate 100 million new jobs in 5 years , if voted to power

But strictly , in

> Organized Private Sector

> Un-organized Private Sector

> Self – Employed Sector

Now each job will require an additional Capital ( fixed + working ) of Rs 1 million , on an average

That means , these Sectors ( not the Government ) will need to raise ,

> Rs 1 million * 100 million ( Rs 10 Lakh * Crores )

If voted to power , we ( BJP / AAP ) will enable these Sectors to raise this amount of funds thru introduction of following schemes :

> BLACK MONEY AMNESTY SCHEME

These Sectors will be allowed to invest their Black Money ( whether stashed locally or abroad ) in specific , Government – Approved , ” Infrastructure Bonds ” . No questions will be asked as to the source of the funds and the interest earned will be tax-free for a period of 10 years

> JOB GENERATION SCHEME

Since the emphasis is on Job Generation , companies will be ” incentivized ” to hire more permanent persons
The incentive will be in the form of reducing Corporate Income Tax ( % ) as a company’s employment goes up by setting in motion , ” INVERSION of JOB REDUCTION ” regime , under which ,

” The more jobs a company creates , the less Corporate Tax it pays ”

Example :

> Up to employment of 100 persons …………………………. 30 % tax
> 101 – 500 persons……………………………………………. 25 %
> 501 – 1000 persons …………………………………………… 20 %
> 1001 – 5000 persons ………………………………………….. 15 %
> 5001 – 10,000 persons …………………………………………. 10 %
> Above 10,000 persons …………………………………………. 5 %

Let us celebrate those who provide employment to large number of persons

> DOWN-SIZE GOVERNMENT SCHEME

* Government is already over-staffed . It is hiring 4 persons to do the work of one !
Hence , no new jobs will be created in Government or in PSUs for next 5 years
There will be a ” Recruitment Freeze ” in government – except for the defense services
Government / PSU employment will be allowed to shrink thru resignations / retirements / deaths etc , by adopting the rule of ” No Replacements ”

> SELF EMPLOYEMENT SCHEME

Every unemployed person registering under this scheme will get an interest – free loan of Rs 50,000 / – from any scheduled bank where he / she opens a bank account , repayable in 10 years. Central Government will insure these loan-re-payments
A suitable mechanism will be put in place to prevent misuses such as ,

* Duplicate loans from different banks

* Already employed persons applying for loans

* A loan-taker taking up a job after availing a loan

> HONESTY REWARD SCHEME

” Inverse ” the ” Personal Income Tax ” slabs as follows :

> Up to Rs 5 lakhs………………… NIL tax
> 5.1 – 10 lakhs………………….. 8 %
> 10.1 – 20 lakhs…………………. 6 %
> 20.1 – 50 lakhs………………… 5 %
> 50.1 – 100 lakhs………………… 3 %
> Above 100 lakhs…………………. 1 %

This will encourage tax-payers to honestly declare their entire income and eliminate tax-evasion / black money generation at the very source itself !

Under such a scheme , Rs 5 * Lakh * Crores worth of estimated Black Money will return to the official ” White Money ” banking stream , during FY 2014-15 itself !

Can you imagine everyone wanting a ” Cheque Payment ” only !

And this White Money will get deployed in the CAPITAL MARKET , officially !

With this , we expect the SENSEX to cross 50,000 by 2019 !

Listed ” Private Sector ” companies will be able to attract funds at very low interest rates and deploy these for creating productive assets / employment

These funds will also encourage Private Sector companies to take up long duration Infrastructure Projects – without asking the Governments to guarantee ” Viability Gap Funding ”

> CAPITAL ASSETS CREATION SCHEME

Under this scheme , companies will be granted an ” Accelerated Depreciation ” on incremental Capital Assets created during the year

This will encourage companies to plough back their profits into creating manufacturing capacities , thereby improving the contribution of manufacturing to our GDP

Simultaneously , this scheme will give a huge boost to India’s Capital Goods Industry – the mother of all industries !

I hope the Manifesto – Writers of BJP / AAP etc examine these schemes and ask of themselves ,

” Will these meet EC’s Code of Conduct ? ”

* hemen parekh ( 27 March 2014 / Mumbai )