Plugging fiscal loopholes

We have all been hearing of the glaring fiscal deficit in many business channels / newspapers since some time. Think tanks and economists are indulging themselves into the crisis trying to weave a way out. I am no economist or planner but with the limited knowledge of mundane affairs and courtesy the substantial media coverage, I can presume that increase in govt. revenues / receivables can lead to improvement of this national parameter. I put forth few layman suggestions. I do not know whether the planners will view the suggestive notes but if they do, they would accept that deficit can surely be plugged to some extent.

Change in archaic laws: We are still hearing of fines and penalties in hundreds and thousands. I am referring to the judicial fines. We now have all biggies in the law-net; some or the other scam is emanating each passing day. All the people involved in the same are sufficiently monied. If the law makers could pull up the fines in crores particularly in financial scams, the coffers of the state would simply be full at the earliest. May I suggest an extreme step of doing one-time settlements with each of the financial defaulters and settle their pending unlawfulness.

Assignment of reasonable targets to all: We have many corporations, undertakings and departments of Govt. of India. Most of them have sales approach. You take the example of BSNL; if all the seniors (grade wise) take a personal target of reasonable number of postpaid connections using their contacts and clout. The same thing can be done for senior officials of Income Tax (new accesses can be brought into the tax bracket) department. For all those entities where sales is not possible can be given targets of cost-cutting in their respective area of operations.

Open Voluntary Disclosure Scheme: The last two VDIS options brought more than INR 7800 Cr. into the system through 350000 disclosures. Yes, it had its own setoff criticism but a diligent follow up of the cases who disclose will not only enhance the coffers immediately but also be a steady contributor to the kitty in future years to come. This suggestion becomes more relevant particularly now when there is major hue and cry regarding bringing black money into the white channel.

Land money: There cannot be more concerning an area in revenue loss than stamp / registration duty of land deals. The price is undervalued and thus the duty is also reduced and the actual bulk of the transaction happens in cash; the transaction parties gain only at the loss of the revenue department. Government (read respective state governments) can fix a minimum price to each patch of land (atleast area can be defined) and thus ensure huge leakage of rightful revenue of government.