There are newspaper reports that the Union Finance Minister sought Parliament's approval on Friday 31/07/2015 to increase the budget allocation for this fiscal year by about $4 billion, that is, about Rs 70,000 crore, of which about 50% is to be used as extra capital into Public Sector Banks struggling with bad loans (NPA).
There are instances that some liquor companies float group companies to carry their logo on their products/services as surrogate advertisement since direct advertisement is not allowed in India for Alcohol products. Huge bad loans are from such companies where free advertisement is given to the parent company. Just imagine how much is to be paid for carrying a logo in a car participating in a car race or a cricket match. In short, benefit is to the parent company which runs in profit and the liability to such dummy companies which results in bad loans. Now Government of India is paying back these bad loans in disguise from the taxes like Excise Duty etc., collected indirectly even from the petty expenditure of the beggars on the street and Direct Taxes like Income Tax.
Please also read my following 3 blogs on the subject which I had written in mid June 2015 and is valid even today: 1. FINANCE MINISTRY AWARD TO ERRING BANKS dated 14/06/2015 2. ROBBING THE POOR TO FEED THE RICH - THE GOVERNMENT WAY dated 18/06/2015, 3. MAHARASHTRA CHIEF MINISTER ASKS CRIMINAL PROCEEDINGS AGAINST ERRING BANKERS dated 19/06/2015.
Note: Read my book 'A FRAUD IN THE INDIAN CONSTITUTION' on my fight against corruption and scams in Public Administration
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