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Showing posts from February, 2013

Indian Government on a Looting Spree

As my readers must be knowing, the Indian government is bankrupt and their fiscal deficit is widening rapidly. Government officials are mainly giving a lip-service to budget consolidation and fiscal tightening e.g., on one day they talk about slashing the military budget , and on the next day they warn against slashing defense spending! As I have alluded in past, their main plan is to bridge the deficit via tax increases rather than cutting profligate spending. Following on their plans of taxing the milk cow citizens for filling their own coffers, they have started harassing corporations and individuals. Below are some of the major steps of government's looting spree: A crack down on taxation of transfers within foreign firms (see here ). Under this plan they are now after more than dozen multinational companies. Another news said: " India is aggressively pursuing tax claims against multinational firms operating in the country as the government seeks to rein in its budget