15/05/2020
Hon'ble Prime Minister Modi Ji,
I write this in great dismay and deep anguish at the sleight of hand of your finance minister. What is being played out is a joke on Indian Economy and its people. Here are five pointers that reflect badly on you and make me frustrated and angry:
1. How is repaying tax refunds a stimulus? It was due, you kept it with yourself and now refunded. In fact, the FM needs to answer why they were not refunded earlier and had to wait for an year. And what happens to those refunds above 5 lacs? Imagine if every debtor considers it a favour to pay off the outstanding bills!
2. How is a loan a stimulus package? By a similar measure, can we treat it as income in our books instead of showing it as a liability? Btw, the banks dont have a choice but to grant an additional loan to ensure that the MSMEs survive and don't sick! It is a normal banking practise! As of 2019, the total loans disbursed by all banks increased from 87.46 lac crores to 97.10 lac crores. That would be an 9.64 lac crore 'Economic Stimulus' going by your accounting!
3. If reclassifying SSIs, Micro Enterprises and MSMEs is such a 'krantikari' move, then why did it need a pandemic to decide on it? A reform doesn't need a pandemic!
4. What is the 25% TDS reduction about? The tax liability doesn't come down? The tax rates are the same. In fact, with profitability being severely impacted, the TDS itself will have to be refunded sooner than later.
5. How is it that we saving less is an economic stimulus? It is our income, our savings and our spending. In such case, even withdrawals of about 60,000 crores from EPF accounts because we have been driven to eat out our savings is an stimulus.
Sir, enough of the humiliation. Enough of the accounting jugglery and voodoo economics. There is almost zilch outlay from the government coffers to support us. What you want us to do is to survive by taking loans, increasing liabilities, saving less and eating out of our safety net. And all this, while you haven't spoken a word on those migrant labour, walking silenty for thousands of kilometres, without a whimper or protest, as they try to run away from your rule!
Feel our pain. Have a heart. Be true to yourself. Wipe our tears, if you can. And if you can't, at least don't laugh at us. And if you genuinely believe in god beyond using religion for the political theatrics, remember that you will be answersble to him, one day!
Regards
A frustrated Indian Entreprenuer.
