A small suggestion from an amateur.

This year, the exit budget by the government is blamed as being lack lustre. It is accused of not having any boosts or sops or much needed investment injection in to an economy which is in presently in unchartered waters, due to the current global scenario.

One reason which is stated is the lack of funds. Given the weak fiscal position of the nation, providing more freebies and cuts would only adversely affect the sagging coffers. Usually when a party comes in to power, the first thing which they do is, increase the tax burden on the very few tax paying citizens. no more tax increase is made for the remaining 4 years, and the party trumpets to the world that it has not burdened the common with much tax increase.

While it is understood that tax is a very important source of income for the Government with which they plan the budget, it should be observed that the Budget for the country is common for every one and almost everyone in the country is impacted by it. But the policy of RoI since its birth in 1947 has been to overburden the limited number of people who pay taxes. Or should i put it as, those whose taxes are deducted @ the source.

While every Government, tries ingenious methods to increase tax income, what irks is the fact that no Government has been successful in bringing the farmers and traders and millions of others who successfully evade the tax net using loop holes.

There are farmers who drive BMW cars and own villas in Gurgaon and still dont pay taxes. There are wealthy merchants who never pay a paise in tax, citing Loss in business. There are many well-to-do entrepreneurs, who run businesses without even showing a whiff of their money to the IT department. There are traders who play in the share market and rake fortunes under the name of their unemployed wives/parents making all the money tax free.

Why is that a billion strong nation having the best and the brightest minds graduating from IITs/IIMs not been able to create a effective tax net. Is it because of lack of ideas(not possible) or the lack of political will?