Preamble:
Though a regular reader of the BCAJ, it is ironical that only last month that I had an opportunity to look into the “Cancerous Corruption” series when the Editor contacted me regarding publishing one of my articles on Corruption Audits in the Journal. That article has since been published, but it set me thinking on a concept which grew in my find but which requires a larger forum to brain-storm. I felt that the BCAJ is the ideal forum.
Consolidated Fund of India:
Readers may be aware of the Consolidated Fund of India. All revenues received by the Government by way of taxation like income tax, central excise, custom, land revenue (tax revenues) and other receipts flowing to the Government in connection with the conduct of Government business-like receipts from railways, posts, transport, etc. (non-tax revenues) are credited into the Consolidated Fund. Similarly, all loans raised by the Government by issue of public notifications, treasury bills (internal debt) and loans obtained from foreign governments and international monetary institutions (external debt) and all moneys received by the Government in repayment of loans and interest thereon are also credited into this Fund. All expenditure incurred by the Government for the conduct of its business including repayment of internal and external debt and release of loans to the States/Union Territory Governments for various purposes is debited against this Fund.
Corruption Fund of India (CFI):
Just like the Consolidated Fund of India, we should think of creating a Corruption Fund of India (CFI). Let’s assume the population of India to be 120 crore people and give a 50% allowance for children, elders and the poor who cannot be included in the list of contributors. That gives us 60 crore persons. Lets also assume that each person is asked to contribute Rs.100 annually to the CFI, we target an amount of Rs.6000 crores. Giving a further allowance of 50% for persons who are either unable or unwilling to pay, we end up with Rs.3000 crores. This target can be met with higher contributions from willing contributors and smaller ones from the hesitant. The Government should make a matching contribution from the Consolidated Fund of India giving us a kitty of Rs.6000 crores.
Utilisation of CFI amounts: CFI funds can be used in various ways:
1. It is often felt that negligible salaries and meagre allowances trigger corruption. Increasing the salaries and allowances of a certain sect of people who are habitually corrupt could be done from these funds. A ‘top-down’ approach — starting with the people who are suspected of corruption — should be adopted here with the goal that the salaries and allowances should be liberal enough to deter indulging in corruption.
2. The funds can also be used for setting up Special Corruption Courts. It is no secret that today’s judicial system can easily be overridden and trial of the guilty can take years. The Special Corruption Courts would take immediate action against the guilty.
3. The funds can also be used to disseminate information about corruption — the methods employed, action taken against the guilty and steps to minimise them.
4. Conducting special audits in corruption-prone areas such as government tenders, etc.
5. Pre-audits of events of special significance such as international gaming events, etc.
The above list is only representative. Other avenues to utilise the funds to spread awareness can be identified as we go along.
Why should the taxpayer contribute ? This is a question that has to be and would be asked. It is a fact that corruption has become so entrenched in the system that the Government alone may not be able to do much single-handedly since many of the constituents can be guilty themselves. A mass movement is required to create an impact. Taxpayers in the past have contributed to natural calamities and other disasters. Corruption is a national calamity of epic proportions. Contributions to the fund should qualify for a 100% deduction u/s.80G of the Income-tax Act.
Other details:
The CFI should be a body that is set up with reputed people with an impeccable public record. (thankfully, they still exist !) businessmen, judges, academicians can comprise the Board who should run CFI with no interference from the Government. The accounts and other activities would be made public irrespective of the status of the entity.
Brainstorming: The author understands that the above is overly ambitious (probably impractical too) and would meet huge obstacles. It would also have staunch opponents. However, one needs to make a beginning somewhere and this forum can be used to brainstorm on this issue. Even better, BCAJ can organise an open-house on this topic.
