Kashmir Solution: Let the state collect personal income tax

Kashmir Solution: Let the state collect personal income tax

I am sure you must be thinking how we can solve Kashmir problem by letting Indian states collect personal income tax. It is simple.  First, Root cause of Kashmir problem is not external, but it is internal. The root cause is state subject law. It does not allow non-kashmiri people to become citizen of J&K. Same problem exists in north east states.It is natural that state dont want to share their limited resources with more people. There is no incentives for them to do so.

Now let me guide you, how letting states collect personal income tax will solve these problems.
State personal income tax will be incentive for the states to welcome qualified, high income earners people in their state.

In the beginning, Kashmir and north east states will grant full state subject hood for all the people living in their territory, just in the hope to collect more income tax, knowing that state can not force them to leave the state.

In next phase, it will invite educated, high income earner professionals to live the state. It will also invite businessmen to setup companies in the state so that state can collect personal income tax from employees. Believe me, state govt will find ways to do this , irrespective of their political positions.States will also try to improve law and order situation to attract more income tax.

Now the most important stuff, put this proposal in GST bill. It will sail through easily and India will become one market and it will become stronger overtime by creating competition among states to attract high income earner Indians. One more step for cooperative federalism.

Aadhar, The foundation stone of developed India.

I believe Aadhar number.card is foundation stone for new Developed India. Here are the reasons for it.

1. All government benefits can be linked with Aadhar number.
          1. Education, Scholarships
          2. Jobs: Pension,
          3. Subsidy: LPG, Fertilizer, Kerosene,wheat, rice etc.
     This will result into streamlined, corruption free, cost saving, efficient and targeted benefits to  needy.

2. Improving Law and order
        1. Registration of criminals in criminal database.
        2. Employment based on background verification.

3. Financial system:
        1. All Financial transaction based on aadhar number for better tax collection, black money,  linking government benefits to aadhar number.
        2. Improving financial responsibility of citizens.

4. E-Governance implementation:
        1. all government transactions of citizens can be done using aadhar number.
        2. Better tracking of govt employees.

5. Citizen management:
      1. Realtime census, available anytime.
      2. Health/Civic Credits for citizens based on behavior. 
      3. Govt policies can be designed realtime based on earlier data.

There are much more benefits. Only Limit is our own imagination.Aadhar will be founding stone of new Developed India.

National Rating Agency

Objective:
To foster healthy competition among similar entities.
It can help creating healthy competition among states, ministries, PSUs, Academic instituitions, etc.

Structure:
Organization which will regularly rate various entities in similar category. It can be independent entity
or be shared with one academic instituition.

Tasks.
Every fixed time period,
1. It should rank all indian states, in terms of ease of doing business, law and order etc.
2. It should rank all academic institutes in terms of quality of education, job opportunities, innovations etc.
3. It should rank all PSUs based on efficieny, performance and innovation.

Benefits.
It will create healthy competition among states, PSUs,academic institutes as it will be indirect measure of chief
administrator of that entity. This formula can be applied in any environment to improve performance.

How to transform PSU to GOPM entity?

As we know that government owned entities (PSU) have failed to deliver results, everybody is asking how to transform these behemoth  entities. I believe it will be very hard and difficult to transform these entities and the process will take log time but it is doable.

Here are the steps which can be followed over time.
1. Nominate board of directors for every PSU.
2. New employee should be private employees, not government employees.
3. Existing employees should be given offer with 40% salary hike if they chose to become private employee.
4. Offer voluntary retirement schemes for older employees.
5. Board of director should choose new CEO.


I believe based on above steps, over time PSU will become GOPM entity. Please remember GOPM is good proposal to PSU whose performance can not be judged by profit. Any entity whose performance can be judged by profit should become private entity.

GOPM entity (Government Owned Privately Managed)

What is GOPM?
An entity which is owned by government but managed like private entity

Why do we need GOPM?
Private entities are useful when business operation can result into profit. Unfortunately performance of some organization can not be measured by profit. Objective of these organization has to be determined by government.

Based on historical experiences, it has been concluded that government owned entities have poor performance. Hence we need GOPM concept.

Structure of GOPM entity:
1. Board of directors, nominated by government (>5 members). Determine annual performance benchmarks.
2. CEO, professionally selected by board. annual renewal if performance benchmark met.
3. Private Employees. No government benefits.
4. Operation cost is paid by government.

Where GOPM can be applied:
Any entity which is not profit driven but essential for a state.
Example NASA, DRDO

Team India Policy Panel

Organization Name: Team India Policy Panel

Mission: Suggest policies to central/state governments.

Structure: One member nominated from each state/UT

               Center will nominate Deputy chairman. PM will be chairman

               Rest are SME (subject matter expert)

 Modules: National Security

                Economic development

                National Integration

                SAARC integration

                Natural Resource

Every module will have module lead and 4-5 module members (SME)

State appointees will be interface between state and policy panel.