20. Enacting Person-ID System, Citizen-ID system

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20.1 Lack of ID-system

So rotten are our officers and Ministers, that are our all existing ID systems, ration card, election card, PAN-ID etc are so defunct that many citizens have lost faith that an “ID system” can be built. To make matter worse, the intellectuals have sworn not to inform citizens about ID systems, and so many people still believe that ID system just means “issuing a card” , which is not the case (the important part in an ID system is an entry into Govt CDs --- not the card which can be easily forged.) . And the intellectuals keep misleading people by saying lies like : “ US has ID system --- they haven’t been able to stop illegals" . I shall later refute that lie.

What is ID –system? ID-system is NOT card – the card is tiny part of it. An ID system is a system where-in records of citizens , other persons, companies etc are obtained accurately. A foolproof ID-system is trivially possible, and is highly inexpensive on per capita basis. And the ID-system trivially solves many problems

1. If Person-ID system combined with a law that “employer must report employee’s ID, finger print, photo” can reduce infiltration of Bangladeshies to less than 1% of what is now
2. can eliminate be-naami land holdings
3. can reduce tax evasions
4. can reduce cost of record keeping every Govt dept
5. eases the task of tracking suspects and thus reduce policing costs
6. the DNA database is extremely useful in tracking rapists and many other criminals
   

And there are 10s of major benefits. For India, if ID system and law to “report every employee” is not enacted, then population of Bangladeshies will increase in North East to a point that NE will become part of Bangladesh and cores of Indians in NE will be killed the way they were killed in 1947.

The MRCM party promises to create Person-ID system within one year, and a Citizen-ID system in 3 years. The drafts of Govt Orders needed to enact the Person-ID system and Citizen-ID system is given in this Manifesto.

20.2 Expectations from a Citizen-ID system

This book is our Manifesto. We really did not prefer to describe what ID system means. But sadly, intellectuals of India are so intensely against giving information about ID system to us commons, that most of us do not even know what ID system means and what it can do.

A Citizen-ID system is a system which enables a community and a govt officer to ensure that a particular person is “one of us”, he is whom he says and he is same as one described in the Govt records. Following are some of the issues related to an ID-system

1. ID number must not change for life
2. ID number should be unique nation wide
3. Every citizen must have ID, and non-citizen should have different type of ID
4. The citizen must get a serial number as soon as he applies. And it is possible to cut the delay to say 15 minutes, rather than days
5. It should be possible to fix the errors in Govt records within minutes.
6. A citizen must be able to get a new ID card if his original one is lost within hours
7. There should be sufficient details on the card so that it is possible and easy for an officer to ensure that the person holding the ID card is same as the person in the card.
   

The modern technology has solved these problems some 20 to 30 years ago. And today, they have been solved to the level of triviality. How? Consider finger print. By scanning finger prints in computer, the identity of a person can be checked. Now say in a population of 10 lakh say some 1000 citizens have fraudulently obtained two different ID cards. Then by comparing the finger prints, the modern computers can detect over 95% of these duplicates within hours. Also, a person can be required to submit blood group details such as ABO, +/-, MN, K etc factors. Basically, there some two dozen factors in human blood which makes blood group of a person “nearly” unique. If same person has obtained two different ID numbers, his blood group details on the cards will be same, and a computer by detecting duplicates can catch him. And once the system gets funding to obtain DNA profiles, all identity and duplicate related issues will vanish.

20.3 Person-ID system , Citizen-ID system

US has a population of about 30 crores of which about 2 crore are illegal immigrants. India has population of 110 crores and as per various estimates, we have 2 crore to 3 crore illegal Pakistanis and Bangladeshies. But US has a system of records in place to prove or disprove whether the person is illegal immigrant or legal immigrant or a citizen. Whereas India does not have any such system of records. So we demand, promise to build citizen-ID system in following way

1. Build Person-ID system : Issue Person-ID to every person in India and their children within one year
   
2. One year later, the Person-ID will be issued to only those whose both parents have person-ID. Thus new coming adult Bangladeshies will not be able to get Person-ID
3. Enact a law that employers will need to report Employee’s Person-ID to Govt. This will enable Govt to track down fake IDs and catch Bangladeshies with fake IDs. This will disable new coming adult Bangladeshies to get jobs in India , and so their inflow will reduce.
4. After one year, build DNA database and “relative tree” in the system – i.e. each person in system is linked to as many of his blood relatives as possible.
5. The person with Person-ID may approach institutions who have issued him certificates such as school leaving certificates, college degrees etc. The institutions will upload the certificates with Person-ID on registrar’s website.
6. A person can verify his records on Registrar’s website using his Person-ID
7. After one year, start Jury based tribunal to decide which person is Indian or non-Indian. After his non-Indian-ness is verified, he will be expelled from India. Such trials would go on for about 2 years
8. After 2 years, the Person-ID system will become Citizen-ID system
   

20.4 Summary of Person-ID system MRCM demands and promises

So an ID-card should have following details

1. ID number : 11 digit ID number issued to all adults and later only at birth
2. Name, address, parents’ name, parents’ IDs
3. Names , IDs , relation of 200 or less relatives. This feature will be useful in expelling Bangladeshies.
4. Date of issuing ID card, place of issuing ID card
5. Photographs
6. Names on other IDs such as ration card , school certificate if different
7. Date of birth, Approximate year of birth if DoB proof is not available, DoB as on other certificates.
8. Fingerprints : prints of thumbs and all fingers
9. Blood group details from randomly chosen three different labs.
10. DNA-prints : if and when cost becomes affordable. In the beginning, the DNA prints should be made compulsory for all Govt servants, then all citizens who earn above Rs 10 lakhs a year, then citizens who earn Rs 5 lakhs a year, then all citizens who earn Rs 200,000 a year and then all citizens at their cost and time.
11. If a non-citizen has obtained an ID by fraud, the Jurors can issue a prison sentence of up to 10 years. This will be also helpful in expelling Bangladeshies and Pakistani intruders.
    

20.5 Details of the Govt Order to Person-ID system

Basic Setup

1. The PM will appoint a Registrar over Person-ID system. The citizens may replace him using replacement procedures.
2. The PM will allocate funds necessary to him to create Person-ID system. or the Registrar may submit a proposal which and when get approved by citizens or MPs he shall get the necessary funds.
3. The citizens can expel the staff of Person-ID system using a Jury Trial.
4. The Registrar (or his staff) will issue an 11 digit serial number starting with 2 , 3 or 4 for each citizen of India resident in the district with following details : name as on ration, photograph, birth date on birth certificate, birth date on school leaving certificate (if different from birth on birth certificate), address, finger print, blood groups, DNA-prints (at later stage), serial number etc. The 11th digit will be ‘checksum’ digit.
5. For first year, any a person who states he is Indian citizen shall get the Person-ID. Later, if a National-level Jury decide that he was not Indian citizen, the Jurors may sentence him for up to 10 years in prison.
6. The Registrar will issue two ID cards - a long and a short. The small card will have only 4 details such as Name, ID number, DoB and photo and finger print. The long card will have several details such as name on ration card, name on school leaving certificate, name on PAN-ID, name of Passport, various dates of birth on passport, school leaving certificate and details blood profile, detailed DNA-profile if available and so forth.
7. The Registrar’s staff will take photograph and finger-prints, and scan them in computer. For each citizen, the supervisor will select 3 clerks at random who will take finger prints, photographs and scan them in computer. The Registrar will appoint and officer to investigate the cases where in these 3 finger prints mismatch and clerks who make errors will be expelled
8. To obtain, blood profiles, the Registrar will have about 20-40 technicians in Tahsil office to find the blood details. For each citizen, the Registrar’s clerk will randomly select 3 technicians and the who will take the blood. The blood group details will be entered only if all 3 give same results. The Registrar will personally investigate the cases where there is mismatch and disqualify the technician whose over 1% results are inaccurate.
9. Later, Registrar will take DNA details of a all citizens with in decreasing order of age.
   

20.6 Cost of Person-ID system

DNA fingerprints will be later added into the system. The above Person-ID system without blood group details and (without DNA-prints) will cost Rs 20 to Rs 50 per person and about Rs 5000 crore for whole of India. This system will be sufficient to stop inflow of Bangladeshies. The cost of blood group details will be about Rs 100 to Rs 200 and cost of DNA profile will be about Rs 1000 when done at mass scale. So the cost to build Person-ID system with DNA for whole India will be about Rs 120,000 cr or so. This cost is worth to save Asam from becoming part of Bangladesh.

19.7 Advantages of Person-ID system

1. Once person-ID system is enacted and every person has a person-ID, it will become possible for Govt to issue a GO that employers must report Employee’s Person-ID , and Jury may fine an employer who hires many ID-less persons. So illegal immigrants will have two options --- leave India or obtaining fake-ID or use someone else’s ID. Obtaining ID will not be possible for anyone except newborns after first year. And if he uses someone else’s ID, he will get tracked by the Govt authorities. Thus with Person-ID system, inflow of new Bangladeshies will decrease.
2. Once every person has ID and payer-receivers to report IDs of each other, the under-reporting of income and over-reporting of payments will reduce. This will reduce income tax evasion.
3. Once every person has ID and land records are tied with IDs, the under-reporting of wealth and will reduce. This will reduce wealth tax evasion.
4. With DNA database, the forensic will be improve and tracking suspects will become easier
5. With Person-ID system, tracking escapees and those who evade summons will become easier. And so law-order situation will improve.
   

20.8 Building Family Trees using DNA data

Lets say as on Jan-1 of year 2010 everyone’s DNA data of every person over 3 months old is in the system. Now each person can be asked to give names, IDs of his relatives. After inputting this in the system and using DNA data, the relations can be actually verified to a considerable extent. Parent-child has 50% DNA in common, siblings with same both parents have over 50% DNA in common, with one parent same have 25% DNA in common, grand child and grand parent have 25% in common, cousins have about 25% DNA in common and so forth. Using this data, a number of blood relations of a person can be verified. Higher the number of blood relatives he has, lesser are the chances the that he is immigrant. And thus using verified blood relative information, many illegal Bangladeshies who have just zero or few blood relatives can be easily identified out with a good accuracy. The system wont be able to track each of the 2cr illegal Bangladeshi, but will be able to track down sizeable number of them.

20.9 ID system in United States

Intellectuals have mislead citizens by saying that “US has ID system, but US has not been able to stop illegal immigration, so India must not waste time and money into ID system”. Their claims are wrong. US does have ID system and records that make US Govt capable of proving and disproving that person is citizen, legal immigrant or illegal immigrants. So US Govt is capable of expelling all illegal immigrants if and when needed. The USG does not expel the illegal immigrants as they provide cheap labor and are not threat to security and integrity of US. So while ID system has given capability to US to expel illegals, they dont use it for their interests. Where as in India, we have no record keeping system as of now to prove , disprove if a person is citizen or not. So we are not even in position of expelling illegals within months or even years. The records as of now are so incomplete that citizenship of mere 10% population can be fully established. Further, the Bangladeshi immigrants are threat to our security as well as integrity. So not only Indian intellectuals are lying, they are working against Indian interests in opposing ID system. We request all non-80G-activists of India to confront these intellectuals and prove to citizens that these intellectuals are anti-India.

20.10 Other party’s stand on National Person-ID system

All parties, including BJP, is against National-ID system. Which is why BJP leaders such as LKA, Pramod, Shourie, ABV etc refused to implement Person-ID system in their 7 years of regime. The reason is trivial --- a person-ID system makes it difficult to hide black wealth and black money and since they are supporters of these elitemen, they are all opposing National-ID system. We request citizen not to vote for these leaders as they are opposing National-ID system.

19. MRCM Party's proposal to Improve Education

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19.1 List of demands to improve education

1. Enacting procedures by which citizens can initially, that citizens can replace using RLPP.
2. Creating Saatya System to improve Maths Education
3. Creating Saatya System to improve Education of important subjects
4. Providing law education starting class VI
5. Providing universal weapon use education
6. Giving subsidies directly to students instead of colleges
   

19.2 Enacting procedure to replace DEO, expel teaching staff

1. The Mayor will appoint a City Education Officer initially, that citizens can replace using registration of Approvals
2. The Education Officer will initially appoint Principals in schools run by the Municipal Corporation. The teachers will be selected with a 3 year contract open competitive exams. There will be transfer every year. Transfers will be via random matching only.
3. Jury procedure for/against a school teacher : If there is a complain against a school teacher, and prima-facie doubt is established, a Jury of 10 citizens will be summoned. If over 7 Jurors decide that the teacher is misfit to serve the students, the teachers will be transferred to a different school. After 3 such transfers, he will be expelled.
4. The procedure of replacement of District Education Officer will alone go long way to improve education, and so will procedure to expel the teachers.
   

19.3 Saatya System for Maths Education

Questions, Exams and Rewards

1. The system will have a list of thousands of Maths questions for each of the 12 standards. Questions will be multiple choice. The list will be published and will be in public domain.
2. Depending on the availability of resources, the District Education Officer will setup 1-4 exams per month for each students
3. Each exam will have 30-120 questions randomly chosen from the list for that quarter. Duration would be 1-3 minutes per question. Each exam will have 500-1000-more students
4. There would be monthly cash rewards for students/teachers based on the performance in the exams. These cash rewards will be the ONLY funding that Maths teachers and schools will get from the state. There will no salary for the Maths teacher.
5. The rewards can be as follows: Say Rs. 10 for each student and his teacher who gets (Average - 10%) and Rs. 20 each student and his teacher who gets more marks than (Average + 10%). Also, each parent gets additional 25% of what the student gets. In addition, for students after class V, additional 25% of what the student got goes to his teachers of past 2 years. The exact amount of the reward will depend on the money allocated to DEO that year.
   

Administration of Exams

1. The testing centers would be operated by District Education Officer.
2. The DEO will arrange for the buildings, desks, computer terminals, servers, printing reports, allocating rewards etc. for the testing centers using the taxes he collects. DEO would appoint clerks, supervisor, assistants etc. to run test center. The citizens may expel an employee using Jury Trial.
3. DEO, or his clerks, using random choice, will instruct a student to go to a testing center near his school/home. For each month, the testing center can be different. Each student will get a different desk in test. This reduces the chances of cheating.
4. The server computer, upon the instruction of the supervisor, will randomly choose 60 questions from a list of 1000s public domain questions.
5. Each student will get the same 30-60 questions in different random order. Thus two students sitting next to each other will be getting questions in a different order. The server will not allow the student to change the answer to a question after he has answered it. The server will allow at most 5 minutes per question. This will make the exam cheat proof.
6. The DEO will pay the rewards for all the tests of that month before 10th of next month.
7. Testing cost will be below Rs 5 per test, not counting the land cost.
   

Dispensing Rewards for Maths Exams

1. If over 95% students answered a question or if less than 5% students answered a question, the DEO will not count that question at all.
2. The DEO will decide number of tests to be conducted for each subject for a given class. For example, lets say that DEO decides that every month, there will be 2 Maths test, 1 Physics tests, 1 Chemistry tests, 1 Biology test, 2 Law tests etc.
3. The software will issue the points right after the exam.
   

Selection of Maths teacher in Saatya System

1. In the system I described, any person can register himself as a Maths teacher.
2. The parent of the child will decide which Maths teacher’s class his child will attend. The parents can change the teacher any month.
   

19.4 Saatya System for other Subjects

The system I described can be used for many subjects such as

1. Science (Physics, Chemistry, Biology etc)
2. English vocabulary, grammar, sentence construction, translating sentences from English to another language and vice versa. (not English Literature)
3. Hindi (vocabulary, grammar, sentence construction, sentence translation, not literature)
4. Other languages (vocabulary, grammar, sentence construction, sentence translation, not literature)
5. Military History, Technology History, Law History (no culture, arts, music, interpretations etc)
6. Geography , map-making and surveying practicals at Local/District levels
   

19.5 Providing Legal Education

1. A group of 15-20 students will be asked to attend complete session of a few cases in a court-room.
2. once the case is over, they would be asked to discuss and write their opinions covering the following issues (analysis)
3. was the punishment (or acquittal) fair? was the form of punishment (prison, fine etc.) fair?
4. what exact laws were applicable in this case? are these laws fair?
5. what were the evidences? were these evidences fair? Etc etc
6. discuss and write about following (synthesis)
7. what should have been the laws, if the laws were unfair?
8. is the text of the law simple enough to understand? can you provide simpler text?
9. what should have been the punishment in your opinion?
10. could anything have been done to stop that crime?
11. is there anything that would have made the trial faster? simpler? Etc etc
12. Each case would invoke new issues. Much of the plan would be left to the teacher/students. The students would be supervised by a teacher for 1-2 hr. a week. It would be more interesting if schools can ask retired judges or a retired/practicing lawyers or a technical expert in the field of the case to occasionally participate in the discussion.
13. The students would be asked to take cases in the subordinate as well as higher courts.
14. The cases would be chosen at random.
15. The texts will also have information on actual things (corruption, nepotism, atrocities etc) that do happen in administration and courts
    

19.6 Providing weapon use education

MRCM Party promises to provide Military training to all adults and children above 16.


19.7 Providing English Education

MRCM promises to provide English education to all citizens from age of 5 years to 80 years. All textbooks from class-I to colleges will be made bilingual i.e. odd numbered pages will be English translation of the even numbered pages in the local language. This will apply for all subjects, Maths, Sciences, Law etc. The students will be free to write exams of these subjects in local languages and in addition can also write second optional exam of these subjects in English. The score of second exams will not carry any weight.


19.8. Draft of the Executive Notification to create procedure by which citizens can replace DEO

#	Procedure for	Procedure / instruction
1	-	The word citizen would mean a registered voter
2	DC (District Collector)	If any citizen of India wishes to become DEO (District Education Officer) of a District, and he appears in person or via a lawyer with affidavit before the DC of that District, the DC would accept his candidacy for DEO after taking filing fee same as deposit amount for MLA election.
3	Talati , (or Talati’s Clerks)	If a citizen of that district comes in person to Talati’s office, pays Rs 5 fee , and approves at most five persons for the DEO position, the Talati would enter his approvals in the computer and would him a receipt with his voter-id#, date/time and the persons he approved.
4	Talati	The Talati will put the preferences of the citizen on district’s website with citizen’s voter-ID number and his preferences.
5	Talati	If a the citizen comes to cancel his Approvals, the Talati will cancel one of more of his approvals without any fee.
6	DC	On every Monday, the DC will publish Approval counts for each candidate.
7	CM	If a candidate gets approval of over 51% of ALL registered citizen-voters (ALL, not just those who have filed their approval) in a district, then CM will expel the existing DEO and appoint the person with highest approval count as DEO.
8	CM	If the person on the seat has come by approvals, and the person with highest approval must have 5% more approvals than existing one, then and then only the CM will appoint the person with highest approvals for that position.
9	CM	If the person’s approval is below 33%, then CM may replace him with his appointee. But as long as approval is above 33% , CM will not replace him with his appointee.
10	MLAs, CM	If over 50% of all citizens of the State have requested CM to ignore Approvals of a citizens of a particular district, then CM will ignore the approvals of that district and appoint DEO as per his discretion.

18. MRCM proposals demands, promises to control wasteful expenses

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We propose following solution to control the wasteful expenses

1. Every transfer out of ANY Govt account and cashbook will be published on Govt website with details of expenses such as project code, operations amount, date task performed , date payment made etc
2. The expense record will also have explicit mention of the names of the officers who recommended and cleared the expenses
3. The record will also show the full details of the receivers
4. If any citizen has evidences to show that the expenses were wasteful, then he may approach the Grand Jurors, who may approve the trial
5. If the Jurors are convinced that the expense was wasteful, the may expel, fine the officer.
   

The threat of Jurors’ expelling the officer would be sufficient to reduce the wasteful expenses.

17. MRCM's proposals to improve general administration, curb nepotism

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17.1 Reducing nepotism, corruption in recruitment at lower position

There is rampant nepotism in recruitment in judiciary, executive and police, along with usual corruption. Much of the nepotism and corruption is because of discretionary powers and interviews.

One of our MRCM Party’s demands and promises to reduce nepotism by canceling interviews and confine to broad based written recruitment exams (and physical tests where needed) at all entry level positions and Govt colleges (except Military). If the person is in-appropriate, the Jury can expel him, but recruitment wont involve any interviews. Further, we will cancel interviews in all exams inside all colleges, including medical colleges except Military.

Using the Third MRCM Govt Order as tool and by obtaining YESes of crores of citizens, we shall enact Govt Orders that will abolish interviews at all entry level positions and encourage written exams (and or physical tests where applicable).

17.2 Reducing nepotism, favoritism, nexuses, corruption in recruitment at top position

As of today, positions like District Police Chief, District Education Officer, RBI Chief etc are filled by nepotism, corruption, nexuses and favoritism. The officer who has highest nexuses comes to these positions. And after occupying these positions, all they do is serve these nexuses. The procedure of replacement automatically cuts nepotism --- for no person can have millions of citizens as relatives. Further, using second MRCM EN and by obtaining YESes of crores of citizens, we would support direct elections for the following positions

Direct elections at National Level

1. MPs (as today)
2. PM
3. Telecom Minister
4. Electricity Minister
5. Supreme Court Chief judge, 4 senior most Supreme Court judges
6. RBI Chief
7. National Land Rent Officer
   

Total – 11 positions

Direct elections at State Level

1. MLAs (as today)
2. CM
3. Electricity Minister
4. State Land Rent Officer
5. State Police Chief, , 4 members of State Police Boards
6. Chief State Public Prosecutor, 4 senior most State prosecutors
7. Chief High Court Judge, 4 senior most High Court judges
   

Total – 19 positions

Direct elections at District Level

1. District Panchayat Members (as today)
2. Mayor
3. District Education Officer
4. Chief District Public Prosecutor, 4 senior most District prosecutors
5. Chief District Judge , 4 senior most District prosecutors
6. District Police Chief, 4 members of District Police Boards
   

Total – 18 positions

IOW, gradually, with explicit approvals of 50% of citizens, MRCM party would opt for system where in about 8 positions at National level, about 18 positions as State Level and about 18 positions at District Level and about 40-50 positions altogether will be filled by elections. In addition, citizens will have procedure to replace them. The terms will be 4 years exact. Overall, the system would need 2 polls a year, with one poll deciding fate of about 5-6 positions. We support paper ballot only, and oppose electronic ballot. The cost of poll as of now, Jul-2008, is Rs 10 per poll per voter, and can be brought down to Rs 5 per poll per voter. Much of the expenses is in policing and that would decrease as power attached with each position decreases and courts improve. That apart, by adding bar code with voter-ID and other means, cost can be brought down to Rs 3 per voter. Over all, the system of having 45 to 50 elected officials with 4 year term would cost about Rs 150 per person every 4 years or about Rs 40 person per year and reducing favoritism and nepotism to near zero.

The election in constituency larger than 100,000 kills nepotism, favoritism as well as nexuses. No one can have even 1000 relatives or nexuses with 1000 people, and so it is clear that effect of nepotism will be less than 1%. Further, when constituency is above 10,00,000 voters, no caste will have majority and if a caste is even as large as 25%, it breaks down into many sub-castes. And so in constituency larger than 10,00,000 voters, casteism also becomes a minor factor. Hence election is superior than existing procedure of appointments.

17.3 National ID system

The National-ID system is useful to log details of common citizens as well as govt officers good and bad actions. The details of the Govt Order needed to create National-ID system is here.

17.4 Publishing wealth disclosures of Govt Employees

Every Govt officers (including judges) and his spouse, kids would be required to file disclosures of the wealth they have and the wealth of their trusts and companies they own. This will enable citizens to decide whether they should be supported or not. In addition, every Govt officer would be required to give a list of all his close relatives who are serving in Govt. This can be used by citizens to get an idea about the nepotism in the administration.

17.5 Other party’s and intellectuals stand on reducing nepotism , filing disclosures

The leaders of other parties and all intellectuals have opposed canceling interviews. They insist that interviews must be taken. And most party’s leaders have opposed disclosure of assets owned by Govt officers, judges, Ministers etc. And almost all of them oppose broad based election of 35-50 officials at District, State and National levels. If citizens are directly electing/replacing District Police Chief, this reduces the incomes of CM who appoint/transfer them. We request all citizens to ask their favorite party’s leaders on what they intend to do on issue of strengthening the Military and decide if they are worth voting for. And we also request activists to ask intellectuals on this issue, and decide if they are worth following.

16. MRCM proposals to abolish VAT, service tax, enact wealth tax; Improve taxation

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16.1 Summary

We demand and promise to bring following changes in Tax structure by obtaining YESes of citizens on the Govt Orders and Ordinances needed to bring following changes.

1. Enacting Wealth tax for Military, Wealth tax for Police/Courts, Wealth Tax for Education of subjects needed by Military, Wealth tax for Strategic Defense The tax will apply on market value of land, construction by size, market value of shares and bonds, gold, silver and metal.
2. Reduction in Income Tax, abolition of most exemptions such SEZ, exports, charities etc
3. The religious trusts will get exemption of Rs 100 per adult member per year and Rs 50 per member below 18 with limit of at most two children. And one citizen can become member of at most one religious trust.
4. Abolition of ALL excises except few items like vehicles (which will be used strictly for funding roads), fuel, electricity etc.
5. Abolition of VAT , sales tax on all items including tea, coffee, tobacco, liquor etc
6. Abolition of service tax
7. Abolition of Octroi
8. Reduce Inheritance (Estate) to 1%
9. Almost abolition of stamp duty - reduce stamp duty (transfer tax) to 1%
10. Health tax on tobacco, liquor only to cover medical subsidies given to illnesses due to tobacco, liquor etc. The tax on tobacco, liquor etc will not be used to cover any other expenses.
11. Abolish HUFs. Incomes of HUFs will be bracketed with Karta or taxed at corporate rates
12. No wealth tax exemption for HUF’s wealth . Wealth of HUF will be bracketed with Karta or taxed at highest rate as Karta may wish.
13. National ID system to track wealth ownership and incomes
14. Universal banking system to track payments and reduce evasion
    

16.2 Regressive Taxes

What is a regressive tax?

Given a tax, I analyze following aspect of a tax, and classify the taxes in 3 categories --- flat tax, regressive tax and progressive tax

• Say some dept of GoI, like military, police etc needs Rs 5000 cr
• Say there are 5 cr individuals in a nation and together their income is Rs 50000cr.
• Now say the taxes are adjusted in such a way that each person ends up paying 10% of his income. Such a tax is called as FLAT TAX (flat wrt income).
• If the taxes are adjusted in such a way that a person who is earning LESSER income ends up paying more than 10% his income, and person with higher income ends up paying LESS than 10% of his income. Such a tax is called as REGRESSIVE TAX (regressive wrt income).
• If the taxes are adjusted in such a way that a person who is earning MORE income ends up paying more than 10% his income, and person with higher income end up paying LESS than 10% of his income. Such a tax is called as PROGRESSIVE TAX (progressive tax wrt income).
  

In the same way, say GoI needs say Rs 10000cr as taxes. Say various members of the citizenry own properties whose total worth is Rs 10,00,000 cr. Now again, there are three ways to impose taxes ---

1. One way is to impose a uniform tax of 1% of the property value. This would be a FLAT tax (flat wrt wealth owned).
2. Another way is to impose a tax in which those with lesser property will end up paying taxes which is higher % of their property value. This would be a REGRESSIVE tax (regressive wrt wealth)
3. Another way is to impose a tax in which those with higher property will end up paying taxes which are higher wrt their properties' values. This would be a PROGRESSIVE tax (progressive wrt wealth)
   

Now lets analyze some taxes in India.

Tax example-1 : Tax on movie tickets

Say a person earning Rs 3000/mo sees say 3 movies a month. Say he buys cheap tickets worth Rs 50. The tax in Ahmedabad on such tickets is Rs 20. So he pays (3 * Rs 20) = Rs 60/month as tax, which is 2% of his income. Now consider a person earning say Rs 30,000/mo. It is unlikely that he would be seeing 10 movies a month. Say he sees 4 movies a month, buy more expensive tax worth Rs 100, in which tax is Rs 40, and thus pays Rs 160/month as tax. The tax % will be = 160/30000*100% = 16/30 = 0.54%. Hence tax on movie tax is a regressive tax, regressive wrt income. What is more regressive is that in some cities of India like Ahmedabad, the tax on ORDINARY cinemas, where base price is Rs 20 and tax 80% of the base price. While for the expensive theatres (called Multiplex) where base price is Rs 100/- or even Rs 150/- or even Rs 400), the tax is barely Re 1/- per tax i.e. nearly ZERO !!! IOW, a person who can barely afford/spend to Rs 40 ends on movie ends up paying a tax of Rs. 15. While those spending Rs 100 to Rs 400 pay ZERO tax !!! This is truly a regressive tax wrt income --- the kind of tax India’s elitemen and intellectuals love.

Tax example-2 : Taxes on tea
Consider 100cr citizens of India. Say some 60cr citizens drink tea. For the time being, ignore the remaining 40cr. Now I would divide these 60 cr tea addicts into 3 groups :

1. those who earn below Rs 100/day
2. those who earn Rs 100/day to Rs 1000/day
3. those who earn above Rs 1000/day

Now say a cup of tea uses say 10gm of tea which costs say Rs 2. Say the taxes on tea are 50% of the costs i.e. a cup of tea has tax of Rs 1. Now consider a person making Rs 100/day. Say he drinks 2 cups of tea. Hence he is paying Rs 2 as taxes i.e. 2% of his income. Now consider a person who is earning 10 times i.e. Rs 1000 per day. Obviously, such a person will not be drinking 10 cups of tea per day. Say he is drinking 5 cups of tea per day, in which case he will be paying Rs 5 as taxes i.e. 0.5% of his income as taxes. And likewise, a person who is earning Rs 10000/day will be perhaps spend say 0.05% as tea tax. So tax on tea is REGRESSIVE wrt income of a person.

Tax example-3 : Taxes on tobacco, coffee, gutaka, beer
Consider tax on any such commodity, such as tobacco. Once again, say out 100cr citizens of India, say 40cr chew/smoke tobacco. I would divide the tobacco addicts into 3 groups

1. those who make below Rs 100/day
2. those who make between Rs 100/day and Rs 1000/day, and
3. those who make above Rs 1000/day.

Consider a person who is earning making Rs 100/day. Say he is chewing 10gm of tobacco on which tax is Rs 1. Obviously, those who earn 10 times i.e. Rs 1000/day are NOT likely to consume 10 times more tobacco. Perhaps they would be consuming 2-3 times more. Hence the individuals with lesser income are paying larger portion of their incomes on tobacco taxes. Hence taxes on all these commodities like coffee, tobacco etc are REGRESSIVE wrt income.
Quite often intellectuals cite taxes on tobacco as "welfare-oriented" i.e. taxes on tobacco reduce consumption of tobacco and thus improve the health of addicts. This is a flat lie and shows the extent to which intellectuals can twist fact to serve their wealthy masters. The reality is as following :

1. say a person earns Rs 100/day
   
2. say he eats tobacco, tea, coffee, sugar, oil etc, which costs Rs 20 before taxes
3. due ultra high taxes, the price of those goods is Rs 50
   

Now the increase of Rs 30 does NOT decrease his consumption of tobacco etc. Even with 2 to 3 fold increase in price, he continues to consume same amount. But due to higher expenditure, he ends up with LESSER money to buy good food like milk, ghee etc. And he is left with lesser money for his cloths, and he also has lesser money for his wife and kids, and may be his parents' food, clothes and education. He also ends up with lesser money for their medicine. IOW, the regressive taxes on tobacco, tea etc DOES NOT reduce their consumption of these "bad items" but drastically reduces his consumption of "good items". This not only ruins his and his family members' lives, but deteriorate the whole economy. How? Since the person has lesser disposable income, he ceases to be consumer for a large number of goods. Hence the market for those goods shrink, which forces the manufacturer of those items to reduce production. This reduces the number of labor they can support and thus starts a negative cycle.

Effect of regressiveness in taxation

How this "gyaan" on type of taxes --- flat, progressive and regressive --- useful in understanding problems of India? The overall taxes in US/West are much less regressive than they are in India. As a result, the poverty problem is less severe in West, and the lower class in US/West has higher disposable incomes. So they have more money to buy various goods. This has created a large internal market in US/West for various manufactured goods and services. In addition, the lower class individuals in US/West also manage to save money to buy equipment needed to increase their productivity. While due to regressive taxes, the lower class individuals in India is hardly left with any money to buy that many goods or equipment. So the market in India remains small despite large population. And lower class individuals fail to buy equipment etc to raise their productivity.

16.3 Govt Ordinances for wealth tax for land/houses Military, Police, Courts and Strategic Issues

Overview

• Per person 25 sq meters of non-agricultural land and 50 sq meters of construction space in urban areas and 4 times of that in rural areas will carry lower (near zero) rate
• Above the above limit, tax equal to 1% on the “market value” will apply
  

DETAILS OF WEALTH TAX LAW WE DEMAND

Senior officials

1. This wealth tax for Military will be implemented by “Tax Officer for Military” appointed by PM, who can be replaced by citizens
2. The PM will also appoint Registrar whom citizens may replace
   

Registration of properties

1. If an individual owns a flat, then land owned by him will be land owned by apartment complex will multiplied by % shares he owns in that society.
2. Each person/company with a land or house will register his property with the Registrar. The owner will also register its area, exact location and other details as asked by the Registrar (this is already done in most cities; most municipalities already have land/building records)
3. If the individual owns land below 75 sq meter and construction area below 200 sq meters, then tax due on him be zero. But he does need to fill the form disclosing purchase price , purchase date and year wise alterations he has made till date. No proofs for alterations will be required.

Registration of families, eligibility for becoming member of family

1. For the purpose of wealth tax, an individual can register himself as solitaire (alone) or part of family. which ever suits him best.
2. Family will consist of Head of the family, who can be male or female.
3. The spouse of Head can become member.
4. The children below 18 can become member of family with approval of both parents
5. If the children are above 18, they as well their spouses can still become member family if they have not registered their own separate families with wealth tax dept.
6. The parents and parents-in-law too can be member of the family unless they have separate families. And grand children of son as well as daughter can become member of family if both parents of the grand-child are members of the family.
7. The great grand children cannot become member of family
8. Unmarried or divorced siblings of Head can be member of family, but married sibling cannot become member of the family. The sons and daughters of sibling cannot become family
9. One person cannot be member of two families.
10. Persons registered as solitaire cannot be part of family.
11. If a person has more than 3 kids, only 2 can be part of family for wealth tax purposes.
12. If a person wants to form family for wealth tax person, he will need to register the family with list of members. The signature of adult members will be required and signature of parents of children will also be required.
    

Exemption

1. The exemption limit solitaire person will be 75 sq meter of land and 150 sq meter of construction, while that for family will be [75 + 40 * (number of family members-1) ] sq meter of land and [150 + 80 * (number of family members -1)] sq m of construction area

Classification of property – personal, semi-personal and impersonal

1. For the purpose of wealth tax, the owners can define the property as personal or impersonal or semi-personal depending on which valuation scheme suits him best.
2. If person is Solitaire, then a group of properties will qualify as personal if
• the property has no co-owner
• the sum of land area of properties is below 25 sqm
• the sum construction area of properties is below 50 sqm
3. If person is Head of the family, then a group of properties will qualify as personal if
• all owners of properties are family members, and none is outside the family (not every family member should be owner)
• the sum of land area of properties is below [25 + 20 * (number of family members-1) ] sqm
• the sum of construction areas is below [50 + 40 * (number of family members -1)] sqm
4. There can at most one semi-personal property per solitaire if it meets following requirement
• the solitaire person has not labeled any property as personal property
• he is the sole owner of the property
• There can at most one semi-personal property for a family if it meets following requirement
5. There can at most one semi-personal property for a family if it meets following requirement
• all owners of properties are family members, and none is outside the family (not every family member should be owner)
• the family has not labeled any property as personal property
• the personal fraction in the property is exemption limit/area and impersonal fraction will be (1 – personal fraction)
6. The owner or Head can change the label on property from personal to impersonal to semi-personal any year.
   

Registration of properties’ values

1. For the purpose of the wealth tax, there will be two values of each property --- standard value and circle rate value.
2. The standard value of a property will be (circle rate price at the time of purchase plus alterations made each year). The alterations will be as disclosed by the owner. The owner will not be required to provide any proof of alteration made, but must disclose the value of alteration made in the income tax statements as well.
3. The circle rate value of a property will be value based on unit rates of land and construction set by Valuation Officer for that area.
   

Tax on the land/house

1. The tax on properties which get qualified as personal properties will be zero.
2. On impersonal properties, the tax rate will be 1% of higher of the two values – standard value and circle rate value
3. On semi-personal properties, the tax rate will be 1% of lower of the two values - standard value and circle rate value multiplied by impartial fraction
   

On inability to pay taxes

1. If a person does not pay wealth tax, the tax will be due on the property and an 18% per year interest will apply
2. If the property is personal or semi-personal, then upon the death of the owner or sale of the property the taxes will be collected. There will be no confiscation
3. If the property is impersonal, the property will be auction when the due amount crosses 25% of the value of the property
4. The amount paid in wealth tax in one year will be deductible from the income of the next year.
   

16.4 Advantages of wealth tax

The wealth tax stops hoarding of the land and thus brings down the land prices. This lowers the cost of land for entrepreneurs and thus number of business increase, and so does employment. IOW, wealth tax does not discourage. And if at all it does damage to industries, it is far less than income tax or sales tax or excise.

16.5 Other changes in tax laws and drafts

In addition, we at MRCM party have proposed, demanded and promised some 200 changes in tax code. All changes are well defined, and specific. The drafts of the Govt Orders and Ordinances needed to bring these changes will be put on this webpage soon.

15. Steps we propose to improve Military

15.1. Summary of change MRCM demands, promises

We demand and promise to bring following changes regarding Indian Military using Third MRCM Govt Order as tool and by obtaining YESes of citizens on the ENs to bring following changes.

1. Enact procedures so that the royalties from all the mines and rents from GoI plots gets divided as --- 1/3rd to the Indian Military, 2/3rd to citizens of India
2. Enact a wealth tax for Military which is 1% of market value of non-agricultural land above 100 sq meters per person, and use that fund on military only.
3. Increase the number of soldiers from 10,00,000 to 30,00,000
4. Increase the salaries of soldiers by 200% as of now (Jun-2008), and an increase of 100% effective Jan-2001
5. Universal Military Training : Introduce compulsory weapon use education for all citizens of India, be school kids of 6th onwards or adults.
6. Recruit 100,000 engineers and 500,000 laborers to increase weapon production from guns to tanks to airplanes or nuclear bombs and missiles.
7. IITs, IISc will come under DRDO. 15 year draft will apply on those who join this colleges
8. Increase the nuclear arsenal of India to establish parity with China
9. Conduct ten 3000 kiloton atmospheric nuclear tests and forty 100 to 3000 kiloton plus ground nuclear tests to be at par with China
   

15.2 What if we dont improve Military

India will go Iraq way. In 1700s, the strength of UK Military became 10 times that of Indian Military due to superiority of weapons and more cohesiveness in British society which was due to fairer administration and courts. And so they were able to enslave India. The West weakened due to WW2 and is now strong again. If India doesn’t strengthen the Military, India will go Iraq way.

15.3 Other party’s and intellectuals stand on improving Military

The leaders of other parties and all intellectuals are simply hostile to improve Military. Every party leader has refused to implement Universal Weapon Education as they are scared that citizens may rebel against their corruption and atrocities. And they also oppose raising salaries of soldiers as they want to keep taxes on elitemen low. Every party’s leaders have refused to bring Nuclear Weapon at parity with even China, forget USA and Russia. The salaries paid to Engineers in Military sector is so low that few engineers join them, and so manufacturing is in shambles. The weapon manufacturing program is so weak that e are even importing Bofors shells, forget manufacturing the howitzer. And we are even importing AK-47 rifles. All projects such as Arjun Tank, LCA and Kaveri Engine etc are in shambles as engineers are not joining these low paying jobs. And the leaders have refused to raise salaries of engineers since 1991.

The income gap between The salaries of middle level officers is so low that even young men from Military families are now refusing to join Military. The Military officers once used to encourage their sons and nephews to join Military and now due to pathetically low salaries, and the salaries are low ONLY because the leaders are hostile in raising them. The salaries are so low that out of the sanctioned strength of 40000 officers, 12000 are vacant. And in reality, we need 200,000 officers not just 40000

The leaders insist that the salaries of soldiers should be no more than 20% more than policemen and officers !! We all know that no young man would join police force or babudom if salaries were their only incomes. The mediamen have created image soldiers are corrupt and so need no raise. This is utter nonsense. Compare 10,00,000 soldiers with 15,00,000 constables in police we have or with 15,00,000 clerks we have in Govt. Each constable or clerk has some discretionary powers of citizen, while soldier has none. So while over 80% of the constables and clerks have opportunities to collect bribes, less than 1% of any of the soldiers have any such opportunities. Compare 40000 officers in Army with 40,000 PSI or above policemen and with Tahsildar or above ranked officers. Less than 5% of officers have any discretionary powers that would get them any bribes. The so called purchases are done by IAS in Defense Ministry and only very high level officers (top 200 or so) are involved in decision making. The mediamen get bribes from foreign powers to create an image that soldiers are corrupt, and so they have created this myth that soldiers are corrupt and so need no raise in salaries.

We request all citizens to ask their favorite party’s leaders on what they intend to do on issue of strengthening the Military and decide if they are worth voting for. And we also request activists to ask intellectuals on this issue, and decide if they are worth following.

14. Converting existing system into Citizens’ Rupee System

.

14.1 Importance of the banking question

He who solves the money [banking] question will do more for the world than all professional soldiers of the history ---- Shri Henrybhai Ford

14.2 Result of rottenness in RBI, Finance Ministry

The most rotten people in Indian Executive are in RBI and Finance Ministry. And their rottenness has caused immense damage to us commons. RBI and Finance Ministry authorized various banks to manufacture new Rupees of Rs 750,000 crores in past one year (Jul-2007 to Jun-2008). This newly manufactured Rupees were given out in form of new loans. Please note – new loans, not issuance of loans from the money repaid from previous loans. The rotten RBI officers have refused to give data on which persons got how much of new Rupees, but most of these Rupees go to top 1% of Indian population, and some half the Rupees go to the top 500000 wealthy individuals of India.

IOW, top 1% got a big chunk of Rs 750,000 crores merely by “promise to pay”. Some 80% Indians make Rs 20 per day. i.e. some 88 crores of Indians work for whole year and make only Rs 7200 a year i.e. Rs 630,000 crores. So rotten officers of RBI ensure that the top 1% Indians get more Rupees for no work and mere promise to pay than what bottom 88 crore Indians make by their hard work !! An individual in top 1%, directly or indirectly, gets about Rs 700,000 lakhs of new loans for no work and mere promise to pay, while a person in an Indian in bottom 80% toils whole year to get Rs 7000 !! All this is due to rottenness of RBI officers and Finance Ministry officials.

And it is not just past one year. In 1951, Rupee supply was Rs 1000 cr. Now it is 4000 times higher – Rs 40,00,000 crores. I repeat and request reader to note carefully --- 4000 times higher not 4000% higher. In past 4 years, Jul-2004 to Jun-2008, RBI has increased money supply from Rs 17,00,000 crores to Rs 40,00,000 crores !! IOW, RBI manufactured more money in past 4 years than in 53 years from 1951 to 2004. This Rs 23,00,000 of newly manufactured money reduced the value of the then existing money, which was nothing robbery. The only reason why prices of everything is rising is increase in Rupee supply. One may say that crude prices increase in Jul-2008 due to increase in crude prices of dollars. First, crude prices increased from $30 in 1990 to $ 130 in 2008 because US$ supply had gone over 5 times in 18 years, if one also takes Govt Bonds into account. And if Rupee supply had not increased since 1991, then Indian rupees would have increased from Rs 50 per dollar to Rs 10 per dollar and so the price of crude in Rupees would have remained unchanged, Hence, only reason for increase in petrol prices in India was increase in rupee supply, as there is no other reason. For more on these issues, please click here

But most intellectuals are clear about following things

1. The common citizens need not or rather must not be informed about this money issuing business.
2. The manufacturing of new M3 does not reduce purchasing powers of M3 citizens had.
3. And so the citizens must not have any control over the process of manufacturing new money and deciding who shall have the newly created money first.
   

This is the most important reason why few commons know about the fact that Rs 750,000 crores, more than what 80 crore Indians earned in whole year was something that those close to banks got for mere “promise to repay”. How can commons ever prosper if there whole year’s labor income is less than what people at top can get by making mere “promise to repay”?

14.3 Solutions

MRCM party demands and promises the following changes in currency system. And we promise and demand to enact them using Third Proposed Change only.
Citizens’ Rupee System

1. Enact procedure by which citizens can replace Chairman of RBI, SBI
2. Confine all Govt banks to fund transfer and storage. Merge all Govt banks with SBI.
3. Reduce the role of Govt banks in loans. The Govt banks shall give loans ONLY to citizens, and not companies, and less than Rs 200,000 per person at interest of 8% to those who qualify.
4. The Govt banks shall only support savings accounts where persons will get 6% interest on minimum balance held in the year. For senior citizens, it will be 8% interest on minimum balance held in the year below Rs 15,00,000 and 6% on amount above Rs 15,00,000. In addition, the interest will be 3% of minimum balance in the month as today.
5. There will no interest to deposits of trusts and private companies. Those who want more interest may go to the private banks.
6. The Govt shall insure only the deposits in Govt banks and not in private bank
7. The Govt shall form the Depositor Groups for each private banks to regulate the private banks, and shall supervise the functioning of the Depositor Groups. But Govt shall not regulate private banks.
8. RBIG will issue M3 to cover interests and support deficits in Military, Police, Courts, class-I-XII education, health, senior citizen support, disabled support and for no other reason.
9. Enacting a law that the RBIG shall not increase M3 without over 51% citizens’ registering their YES except for needs of Military and war.
10. No Govt body will be hence forth allowed to take any debt
11. Universal Banking System : Every citizen will have at least one account with SBI at the branch close to his home. All his transactions with Govt etc will be via that bank. and via that account. The account number will be same as his Tax-ID (cum National-ID when National-ID system comes) and same as his Universal Mobile Number and Universal Email Account on GoI domain. Every transaction in this account will be sent as SMS to his mobile.
12. Disputes with Govt Banks will be resolved by Jurors
13. Steps to stop underground banking : Govt of India will force every bank in the world including Swiss banks to disclose the wealth of every person in India in that bank
14. National ID system to keep track of accounts.
    

14.4 Replacement procedure for RBI Governor

Following is the description of the most importance Govt Order we MRCM propose-demand and promise to fix the Rupee System of Indian

1. Any citizen of India can pay a deposit same as MP election to the PM’s secretary and register himself as a candidate for RBIG (Reserve Bank of India’s Governor).
2. Any citizen of India can walk to Talati’s office, pay Rs 3 fee , approve at most five persons for RBIG position. The Talati will give him a receipt with his voter-id# and the persons he approved.
3. A citizen can cancel his approvals any day as well.
4. The Talati will put the preferences of the citizen on district’s website with citizen’s voter-ID number and his preferences.
5. If a candidate gets approval of over 50% of ALL registered voters (ALL, not just those who have filed their approval) then PM will expel the existing RBIG and appoint the person with highest approval as RBIG.
   

14.5 Draft of the Govt Order to create replacement procedure for RBIG

The citizens should create this change AFTER the third change has come into effect, and should create this change using the third change. Following is the draft of the law needed to create a procedure using which we commons can replace RBIG

#	Procedure for	Procedure / instruction
1	-	The word citizen would mean a registered voter
2	Cabinet Secretary	If any citizen of India wishes to become RBIG (Reserve Bank of India Governor) , and he appears in person or via a lawyer with affidavit before the Cabinet Secretary, the Secretary would accept his candidacy for RBIG after taking filing fee same as deposit amount for MP election.
3	Talati , (or Talati’s Clerks)	If a citizen of that district comes in person to Talati’s office, pays Rs 3 fee , and approves at most five persons for the RBIG position, the Talati would enter his approvals in the computer and would him a receipt with his voter-id#, date/time and the persons he approved.
4	Talati	The Talati will put the preferences of the citizen on district’s website with citizen’s voter-ID number and his preferences.
5	Talati	If a the citizen comes to cancel his Approvals, the Talati will cancel one of more of his approvals without any fee.
6	Cabinet Secretary	On every 5th of month, the CS will publish Approval counts for each candidate as on last date of the previous month.
7	PM	If a candidate gets approval of over 51% of ALL registered citizen-voters (ALL, not just those who have filed their approval) in a district, then CM will expel the existing RBIG and appoint the person with highest approval count as RBIG.

14.6 Converting existing system into Citizens’ Rupee System

1. All FDs owned by individuals will be added to their Savings Account with interests, and those owned by companies etc will be added to their current accounts.
2. Govt shall create M3 to repay all Govt, PSU bonds
3. Interest on all outstanding loans from Govt banks will become 4% and all loans will have to be repaid by 180 monthly installments for housing loans, 48 installments of vehicle loans and 120 monthly installments of all other loans.
4. The late payment penalties will be 8%. The property will be auctioned within 30 to 120 days when unpaid installments exceeds one-forth the principal amount. The auction will be used to pay off the loan and if there is any surplus, the money will be returned to borrower. If there is any deficit, it will be written-off.
5. No new loans will be issued against the money repaid in above loans
   

14.7 Government Debt

Does a father have right to make promises on behalf of his son? Or should a father be allowed to create debt for his son? Or rather, does a father have right to sell his son into slavery? If not, government has no rights to do debts. A person’s debt dies with him. A private company’s debt dies with death of the company or its owners and a public company’s debt is NOT shareholder’s liability and does not go to next generation. But the government debt, which is created by officers appointed by TODAY’S individuals, gets carried on the next generation, with huge interest. The government debt is essentially a mechanism by which RBI-heads and owners/controllers of scheduled banks are converting the Indians into their slaves. The internal debt can still be wiped off by inflating the currencies. But what about external debt? Any Finance Minister with even 1% morality would have hesitated in creating debt is foreign currency. Essentially what Manmohan Singh (and other Finance Ministers) have done is told American Bankers’ following “Give me X billion dollars and ours sons will repay. If not, they will be your slaves.” If one has slightest sense of morality, he would reject the concept of government creating debt. We at MRCM Party has enact a law that would enable citizens to imprison an officer who takes external or even internal debt and thus put an end to Govt Debt.

14.8 Citizens’ Rupee System Law and Deficit Financing

The above Legal Tender Law does not prohibit govt. from deficit financing. It only insists that such an action would need issuing new Legal Tender, and would need a approval of citizens.

14.9 Main differences between existing system and Citizens’ Rupee System

Existing Elitemen-Intellectuals’ Rupee system	Proposed Citizens’ Rupee System
The PM appoints RBI-Governors/Directors. Since the super-rich have nexuses with PM and also have ability to blackmail PM using newspaper/TV, in reality, the super rich decide who will get these jobs. So citizens have no control over RBI-Directors etc.	The PM appoints RBI-Governor/Directors. But citizens, using Approval Filing and Jury Trials, can expel/replace them. So citizens have control over them.
The RBI-Governor consults the PM/FM and super-rich and issues Rupees. The private bankers also create money from thin air.	RBI-Governors can issue Rupees ONLY after majority of citizens have Approved.
The disputes are resolved by judges. Due to continuous proximity with same layers and relative lawyers, the judges develop nexuses us with lawyers and so dispute-resolution favors becomes biased in favor of those who can hire these lawyers. Also Citizens of India have lost faith in judges and Indian judges are too busy and can seldom resolve a case in time.	The disputes are resolved by 12 Jurors (randomly chosen common citizens) who have extreme Hatred against criminals. Also, the lawyers will not be able to form nexuses with Jurors as Jurors change with every trial. Further, Juries can give continuous un-interrupted hearings for days and thus resolve the cases faster.

14.10 Controlling inflation

The one and only cause of inflation is increase in currency supply. The proposed law puts restriction that RBI cannot increase M3 without permission of over 50% citizens. The cost of obtaining permission will be about Rs 150 cr to Rs 300 cr. So even if citizens are asked 4 times a year, the cost will still be Rs 1200. Is the cost too much? Well, RBI had raised money supply by Rs 750,000 in 12 months in 2007-2008. So the cost of permission is less than 0.5% and is very much acceptable cost.

14.11 Other party’s and intellectuals stand on changing RBI

The leaders of other parties and all intellectuals are simply hostile to increase citizens’ control over RBI Chief and the Rupee Supply System. improve Police Dept. Every party’s leaders have refused to increase the number of policemen. They are openly hostile to procedure by which we commons can replace District Police Chief and insist that Police Chiefs must be imposed from top. They further insist on keep salaries of policemen low so they have to depend on bribery and thus they can be pressurized. The leaders of other parties have also refused to enact Jury System by which citizens can expel policemen. We request all citizens to ask their favorite party’s leaders on what they intend to do on issue of corruption in policemen and decide if they are worth voting for. And we also request activists to ask intellectuals on this issue, and decide if they are worth following.