Economy & Equity

The Dark Underbelly of India’s Rising Income Inequality

A key feature of the rising income inequality is due to the growing importance of capital income derived from interest, dividends, retained earnings and rents. https://thewire.in/economy/the-dark-underbelly-of-indias-rising-income-inequality 

There is a reason why India’s economic growth has been so lop-sided. Nobel prize winning economist Amartya Sen noted that since independence, India’s income inequality has been mainly driven by low investment in good-quality education and healthcare. So, while the educated and healthy workers in upper-income groups take advantage of new opportunities to make more money in a growing economy, poorly educated and unproductive workers in low-income groups struggle to make ends meet.

Today, India is one of the most unequal countries in the world where the top 1% income group captures a larger share of the pie than it does in South Africa, Brazil, or the United States (World Inequality Report 2022).

A key feature of the rising income inequality within countries is due to the growing importance of capital income derived from interest, dividends, retained earnings and rents. This has been observed in India too, where increasing share of capital incomes of the rich has been one of the key drivers of rising income inequality in the post-liberalisation period. Meanwhile, data shows that the incomes of people in the middle 50% of the distribution are shrinking.

by Dev Kar

24/09/2024

 

 

How Anomalous IT Collection Masks a Serious Fiscal Knot

In real terms, the income of people employed in the formal sector remained stagnant for over a decade and declined during the past 5 years (-0.3% CAGR). The real average income contracted by 0.9% YoY in FY24. https://thewire.in/economy/anomalous-it-collection-masks-the-fiscal-knot 

The analysis of the recent Income Tax Returns data (FY24, CBDT) reveals that post-pandemic recovery in annual earnings of individuals has been muted. At Rs. 8.2 lakh (individuals plus HUF), it slowed to 4.5% in FY24, averaging at 5.8% on a 5-year CAGR, which is barely enough to match inflation.

by Dhananjay Sinha

13/09/2024

Inequality, Jobs, Hunger: Why You Should Care About the Union Budget

Inequality, Jobs, Hunger: Why You Should Care About the Union Budget https://thewire.in/economy/inequality-jobs-hunger-why-you-should-care-about-the-union-budget By Kavita Kabeer and Haripriya Harshan "The current regime’s corporate-friendly agenda makes it increasingly difficult for the middle class and the poor to stake claim to the public resources. This budget is the last chance for course correction for the Modi regime. It is going to be a test of who the government sides with, the 90% citizens of the country or the top 1%." In an ideal scenario, the resources of a nation should be distributed equally among all its citizens, ensuring that everyone has fair access and opportunities. However, the current regime’s corporate-friendly agenda makes it increasingly difficult for the middle class and the poor to stake claim to the public resources. This budget is the final opportunity to set the policies and the politics right. Because after this, the already high inequality would spiral to such an extent, that it would be impossible to think about a pro-people state, without substantially cutting down on the billionaires’ wealth. The poor are suffering the brunt of GST and other indirect taxes more than the rich. WhatsApp propaganda may say that the poor do not pay taxes. Only two crore people, which is 2.2% of the country’s population, pay taxes. But in reality, huge tax is being collected from the poor on everything. From the 5% GST on flour, pulses and rice that you buy, to taxes such as road tax, toll tax, service tax, and the taxes on petrol and diesel are taken out of everyone’s pocket. This sector provides employment to more than 90% unorganized workers while 45% of last year’s total exports came from this sector.The MSME sector also demands that the GST system should be fixed and credit facilities should be easily available. Also, instead of selling away public sector enterprises, investment should be made in them. A study found that every rupee invested in railways generates Rs 5. Today we are at 111th position in the hunger index. And our leaders are calling even the little relief given to the poor as revadi (freebies). But we need such relief. There is a need to increase the budget of MGNREGS and implement a similar scheme in urban areas too. There is a need to listen to the voices of farmers and strictly implement MSP on the ground and not just on paper.

Second Class Sleeper coashes disappear

Second Class coaches disappear - where will the poor go now? | WHAT DOES THIS DATA SAY https://www.youtube.com/watch?v=3GQKITv8nWY | EPISODE 167 The Public India Railways in the last few years has tried to improve the profitabilty of the Railway.. Comment @prabhatkumarbandopadhaya9845 All these changes have been made in silence.....slowly...slowly....as the system of presentation of Rly's own Budget has been abolished....it was lost sight of the genl people. So, the need is to bring back the system of Rly's Budget..it's presentation & analysis..before the genl Budget. Hope it will come under the scanner of CAG... the independent Govt Auditor of the Nation

Top 1% Grow Wealth by $42 Trillion in Past Decade, 36 Times More Than Bottom 50%: Oxfam

The report also pointed out that billionaires around the world have been paying a tax rate equivalent to less than 0.5% of their wealth. The G20 Finance Ministers meeting is expected to deliberate on a global deal to increase taxes on the super-rich, with Brazilian Finance Minister Fernando Haddad identifying the global tax on billionaires as a key deliverable at the summit. https://thewire.in/world/top-1-grow-wealth-by-42-trillion-in-past-decade-36-times-more-than-bottom-50-oxfam 5/07/2024
  1. Charts: The Modi Govt Has Reduced Spending For Almost All Major Social Sector Heads
  2. Modi’s ‘Policy Paralysis’ Budget Turns The Screws on Middle Class Taxpayers, Rich Get a Free Run
  3. 'Hunger, Undernutrition Stalking India; Placed Worse Than Least Developed Nations': Prabhat Patnaik
  4. Who Are India's Labharthis – the Visible and the Veiled
  5. Banks Want Forged Paper Trails After Taking Money Illegally From Customers For Modi Govt's Flagship Schemes
  6. Survival of the Richest: Oxfam Time to tax the rich
  7. Nikhil Dey- State of Various Schemes in India
  8. Montek Singh Ahluwalia on liberalisation and welfare
  9. Sado-Monetarism
  10. World Inequality Report
  11. Fuel Price burdening the Middle class
  12. Unviable populist schemes could create Sri Lanka-like situation
  13. 20 Indian Companies
  14. India Put on Sale by the ruling regime
  15. What Is To Be Done to revive the Indian Economy! Franc o - Frank
  16. The Problem with GDP
  17. Economic Contraction
  18. Economic inequality
  19. Tamil Nadu Finance
  20. Silver Lining for the Economy
  21. 90% of population--have no money to spend on non-essential items
  22. Importance of Public Banking System
  23. Forme Secretary write to FM saying Asset monetisation counter productive
  24. BSNL paralysed
  25. Modinomics & LIC
  26. PSU Banks
  27. How to destroy the Indian Economy?
  28. Centre should privatise all PSBs, except State Bank of India: NCAER
  29. Roadshows in the US to sell IDBI Bank! Why not allow LIC to own it?
  30. Privatisation of PSBs Will Deal a Blow to Reservation, Government's Coffers
  31. RBI Director called PSU Bank Executives Scum!
  32. Banking Regulations: Should Corporates Own Banks?
  33. LIC IPO: DRHP likely this month, 20% FDI cap being proposed
  34. nationalize the loss making banks and privatize the profitable banks
  35. Legislation to Privatise Two Public Sector Banks?
  36. Defend Bank Nationalisation
  37. BMC scraps 1.8k vacant posts, hundreds of contract staff hit
  38. Medha Patkar on Current Economic Policy
  39. The Shadow Government Plundering the Public Purse
  40. And how common citizens are paying the price for bad Monopolies
  41. Employees of Mahavitaran Jalgaon zone against privatization.
  42. Issues with Privatisation of Essential Services and Free Speech Institutions
  43. SC Dismisses Kerala Govt's Plea Against Adani Group's Takeover of Thiruvananthapuram Airport
  44. Understanding Deregulation, Privatisation & Economic Reforms
  45. Pawan Hans Sale: Cayman Firm in Winning Bid Flayed By NCLT
  46. the biggest privatisation scam in India
  47. Welcome Kerala Legislative Assembly’s resolution opposing disinvestment of the LIC
  48. Where has all the silver gone?
  49. LIC IPO- Gross injustice to the smaller LIC policy holders, especially those belonging to the SCs/STs/OBCs
  50. How to kill LIC -story behind IPO
  51. The political economy of CPSE disinvestmen
  52. Companies Bought & Sold by different Prime Ministers
  53. Public Private Partnerships – Subsidy and Impunity for Private Corporations 
  54. CEL Sale
  55. On Trend for Privatisation: Kanhaiya Kumar
  56. Privatisation of CEL
  57. Privatisation: What Does It Really Mean?
  58. Dayanidhi Maran Shows Mirror To Govt On NPA Write-off and Haircut To Corporates
  59. virtually extending the lease in perpetuity
  60. World Bank offers to help National Rail Plan B
  61. Privatising power distribution: A hoax
  62. Modi’s Monetisation Worse than Demonetisation.
  63. Economics of Monetisation of Assets
  64. Monetisation: Designed To Create 2-3 Monopolies
  65. Privatised Infrastructure by Adani Group
  66. To BEST: Why are we waiting for hours?

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