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...are there any prerequisites for NIT ?



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May I venture to raise few apprehensions about negative income tax concept.

1) Is unique identification code thought of as a prerequisite to implement
this program (NIT) ?.

2) If it is about Rs 650/- refund per year that makes the difference of
whether one person is classified as  poor or not.. is that all ! If he has
that extra money, and if there is some thing like living standards coming in
to picture, with out any basic amenities like water, electricity, etc
   what good this extra money would do when his purchasing power is enhanced
by 650 Rs a year but purchasable  means and products are not in his
reach.Would he not end up in buying some cheap arrack, liquor !   So along
with personal identification, is it also thought of as prerequisite to
ensure  that money is not spent for such purposes ?Could it be possible to
implement !

3) Taking care of above two aspects, let us say, system demolishes all
subsidies, and administers the negative income tax, paid in to his bank
account. What is the guarantee that new market forces which are unfolding do
not increase prices of essential commodities also so high that that cash is
evaporated just in few days. So to take care of this, is there any scale
contemplated, just like
  DA, scale revision etc, some such scale  to accommodate for regional draw
backs, for example (absence of road.. some percentage ofallowance, absence
of electricity some allowance) enabling the person from an entirely
unapproachable area get little more comapred to what his counter part close
to an urban area ! All this  because, the facilities/goods are bound to have
higher price in unapproachable areas.

4) Is there an annual revision also envisaged for the basic figure, keeping
in view the inflation and similar things. Think it is possible because
already the total national figure is far less than what is actually spent on
subsidies. Lot of cushion that way to stretch that way if not indefinitely,
atleast till some threshold. But it has to be accommodated in rule book some
where than fixing an arbitrary rupee figure .
So Is it a fixed rupee figure, or is flexible to accmmodate all such above
factors like inflation, prices etc !

5) If my understanding about ongoing NIT is any thing out of tune to raise
about questions, please forgive and ignore the mail.

Parameswar
   
  
> ----------
> From: 	Dr. Sanjeev Sabhlok[SMTP:sanjeev@sabhlokcity.com]
> Reply To: 	debate@indiapolicy.org
> Sent: 	Sunday, June 11, 2000 5:32 AM
> To: 	debate@indiapolicy.org
> Subject: 	Cost of eradicating poverty, 93-94
> 
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> Please help make the Manifesto better, or accept it, and propagate it!
> ---------------------------------------------------------------------
> The figures are in. Based on the 1993-94 data on poverty and subsidies,
> the
> cost of eradicating poverty then, was Rs. 14768 crores, or Rs. 463 per
> capita (among the poor), when the total non-merit subsidy bill in India
> was
> Rs. 90,000 crores, i.e., 1/6th the cost of money being spent in the name
> of
> the poor.
> 
> Check out the spreadsheet on the IPI publications page. I'll try in due
> course to OCR and put in some of the underlying data on the internet.
> 
> More later.
> 
> SS
> 
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> This is the National Debate on System Reform.       debate@indiapolicy.org
> Rules, Procedures, Archives:            http://www.indiapolicy.org/debate/
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> 


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This is the National Debate on System Reform.       debate@indiapolicy.org
Rules, Procedures, Archives:            http://www.indiapolicy.org/debate/
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