The Hindu Business Line : Budget and Left

The Left parties have made a representation to the Finance Minister to tax the rich and provide basic amenities to the suppressed. There is no doubt whatsoever that the common man's access to basic amenities and facilities, including healthcare, shelter and education, is far less than what it should be in a civilised, developing economy. But how to go about remedying this situation?

Two ways are open: One, as usual, look at China. And two, restructure India's political system.

Many politicians, and others with their blessings, have earned crores but have managed to stay outside the purview of the tax system. If there is tighter discipline in the tax system, money will pour in as long as the political parties do not make hue and cry and allow non-corrupt officials to proceed against these evaders.

China has improved its economy fourfold in just two decades. The Chinese parliament provides legal guarantee for private entrepreneurs. Nearly 120 pieces of regulation and rules were abolished to encourage the development of private sector.

"The central government is fully aware of the fact that an equal competition environment for the private sector has become crucial for the high-quality growth of China's economy," writes Prof Li Yiping, of Beijing University.

In some industries where private capital was allowed to invest, numerous unwritten limits with regard to market access, land use and taxation have been offered. This has helped China lift people above the poverty line.

In 1981 there were 490 million below the poverty line in that country. In 2004 there were just 88 million. Let India only try to follow suit and the beneficial results to the economy will soon be obvious.

K. K. Lakshmanan

Coimbatore

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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