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    El contenido de este sitio:this blog discusses issues pertaining to the indian economy primarily. for this purpose, a lot of ideas from history, philosophy and methodology of economics...

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undergraduate economist perspectives of an economics student search main menu skip to primary content skip to secondary content home internships about books igidr ma economics post navigation ← older posts the union budget 2018-19 in 5 charts posted on march 13, 2018 by alex m thomas tweet the union budget is a key document which informs the public about the government’s socio-economic plans and priorities. it is important to critically evaluate this document because of our collective ‘failure to provide for full employment’ and the ‘arbitrary and inequitable distribution of wealth and incomes’; keynes wrote this in 1936 and it continues to remain the same. moreover, it is our collective right and responsibility to decide how the government should obtain its revenue and how it must be spent. no formula or algorithm exists for this. as piketty wrote in his capital in the twenty-first century , ‘taxation is not a technical matter. it is preeminently a political and philosophical issue, perhaps the most important of all political issues. without taxes, society has no common destiny, and collective action is impossible. this blog post aims to outline the priorities of the current central government by examining the expenditure on physical and social infrastructure and the nature of taxes. this is done in 5 charts. (1) physical infrastructure defence is significantly more important than roads, housing, food, and farmers’ welfare. capital expenditure of select central ministries (in rs. crore) source: expenditure budget vol. 1, 2016-17, statement 2, pp 4-9 all values are rounded off to the nearest crore. (2) social infrastructure physical infrastructure creation is more important than social infrastructure creation. have the negative effects of physical infrastructure creation been accounted for? total allocations of select ministries (rs. 112753 crore) source: bs , p 36, annex no. iii-a to part a re refers to revised estimates which include supplementary demands for funds made by the ministries during the financial year. be refers to budget estimates. (3) direct & indirect taxes our taxation policy is regressive due to the high proportion of indirect taxes. select direct and indirect taxes (in rs. crore) source: receipts budget, 2018-2019 , pp. 2-4 (4) corporate tax concessions our tax concessions could approximately fund 75% of the social infrastructure spending estimate. (5) corporate tax structure our corporate taxes are regressive. effective tax rate paid by sample companies across range of pbt (fy 2016-17) source: statement of revenue impact of tax incentives under the central tax system: financial years 2014-15 and 2015-16, p 30 of the receipts budget, 2016-2017 , annex-15. 1 values rounded off to the nearest integer; hence the total adds up to 101 and not 100. financial year 2012-13. the number of companies whose pbt is zero is 17,912 and their share in total income is around 9 per cent. concluding comments our government prioritises defence over agriculture. our government prioritises physical infrastructure over social infrastructure and does not take into account ecological damage and the displacement caused due to physical infrastructure creation. and our taxation policy is regressive. we must use our collective rights and responsibilities to decide how the government should obtain its revenue and how it must be spent. acknowledgement i thank rahul lahoti for inviting me to be a part of the panel which discussed the union budget at azim premji university-undergraduate campus on 14th february 2018, from which this post originated. posted in agricultural sector , economic policy , economics , india , unemployment | tagged agriculture , arun jaitley , corporate subsidies , ecological costs , keynes , piketty , regressive corporate taxes , tax concessions , tax foregone , taxation , union budget 2018-19 150th anniversary of capital : reading francis wheen’s biography of capital (part i) posted on december 23, 2017 by alex m thomas tweet although i had read the three volumes of capital , three parts of theories of surplus-value , and grundrisse over the course of my phd research , all of them merit rereading and i ought to read marx’s other works. hence, given that 2017 marks the 150 th anniversary of capital , volume 1 (first published in 1867), i decided to commemorate it by reading a work of marx i hadn’t read – wage-labour and capital – and a short biography of capital by francis wheen (2006) . i shall present my commentary in two parts as it is too lengthy for one post. part i is a commentary on wheen 2006, and part ii is on wage-labour and capital . despite writing about steuart , smith , ricardo , sismondi , malthus , keynes , sraffa , krishna bharadwaj and many others in several posts, i have dealt with marx’s ideas exclusively only in one: ‘ is marx (ir)relevant? ’. in the next year, i hope to write more on marx’s economics. wheen’s biography of capital is just about 125 pages. marx’s das capital: a biography is a three chaptered book dealing with the gestation, birth, and afterlife of das capital . marx, the studious worker according to wheen, ‘marx’s character was a curious hybrid of ferocious self-confidence and anguished self-doubt’ (p. 3). it was ‘only after many years of spadework in philosophy and literature’ that marx turned to the study of political economy (p. 7). at the age of seventeen, marx precociously wrote in a schoolboy essay: “our relations in society have to some extent already begun to be established before we are in a position to determine them” (p. 8). [wheen’s excerpts from marx which i quote are in “double quotes” and those by wheen are in ‘single quotes’.] the reader gets to appreciate marx’s style of studying from wheen’s scattered references across the book. marx had the habit of noting down extracts from all the books he read while at the university. and he read widely. as wheen writes, ‘this is the same eclectic, omnivorous and often tangential style of research which gave das capital its extraordinary breadth of reference’ (pp. 10-11). his use of dialectic is influenced by his early study of hegel’s (1770–1831) ‘pursuit of contradictions’. he had taken the idea that ‘people create the constitution’ from ludwig feuerbach (1804–1872), the german philosopher; feuerbach had argued that ‘thought arises from being, and not being from thought’ (p. 13). therefore, humans have to assert themselves as subjects and not as mere objects of capitalism. and to thoroughly engage with the land question, marx thought it ‘essential to study russian land-owning relationships from primary sources’ (p. 37). marx’s data sources included ‘newspapers, parliamentary commissions, factory inspectors and copies of hansard’ (p. 51); hansard contains ‘edited verbatim report of proceedings of both the house of commons and the house of lords’. marx’s data on child labourers were taken from english match factory records. [on the importance of using a wider set of data, see english for economists: sowvendra’s ‘the adivasi will not dance’ .] already well versed in german philosophy and french politics, marx set out to educate himself in british economics. as he went along, he kept taking copious notes. these notes, which formed the early rough draft of das capital , are commonly known as the paris manuscripts, published as economic and philosophic manuscripts of 1844 (available for under rs. 200 from aakar books and freely available at marxists.org ). marx worked extremely hard. he spent most of 1850-1 in the british museum reading past issues of the economist and books on economics. he sat in the museum’s reading room from 9 am to 7 pm. in the winter of 1857-8, he used to sit in his study until about 4 am. when he realised that his ‘rudimentary arithmetic’ would prove inadequate in his economic studies, he undertook a ‘quick revision course in algebra’ (p. 27). marx felt that his study of algebra was necessary “for the benefit of the publi

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