The Cost of Government Services: Are We Getting What We Pay for?

The Cost of Government Services: Are We Getting What We Pay for?

India, a nation of over 1.3 billion people, relies heavily on its tax system to fund governmental services and national development. But is the government delivering value for the substantial amount of taxes paid by its citizens? This article explores the utilisation and effectiveness of taxes to ensure a meaningful living, protection from external threats, and basic amenities.

Government as a Service Provider

When we pay taxes, we are essentially paying for a service provided by the government. However, a significant portion of residents in India do not perceive this as a fair deal. Many Indians seek employment or opportunities in foreign countries such as the Gulf or Europe, where they do not have to pay taxes but enjoy social securities and high-quality education. This highlights the disparity in how taxes are perceived and spent in India.

The Mechanics of Tax Collection and Usage

In a well-functioning system, taxes are raised to fund the nation's operations. If the nation's revenues surpass its planned expenditures, it means that the system is functioning effectively, and no additional taxes may be necessary. Taxes contribute to the citizens' ability to engage in various economic activities and earn an income. Through tax revenues, the government can fund essential services like the Goods and Services Tax (GST).

Development Expenditure and Revenue

The government's responsibility is to allocate revenue for developmental purposes. This includes creating economic activities that provide earning opportunities for citizens. Citizens contribute a small portion of their earnings as taxes to support the nation's growth and development. When revenues are insufficient, the government may resort to borrowing, which must also be repaid through future tax revenue.

An Investigative Look at Government Services

To better understand the value received from taxes, let us take a closer look at how the government provides basic amenities and services to a general middle-class person (MCP).

Basic Needs and Services

An MCP was not born in a private hospital; they have not used government hospitals for their healthcare needs, as these hospitals often lack quality. Government-aided schools may be lacking in quality, prompting MCPs to seek alternatives in private institutions for their children. However, free primary and secondary education is a basic right granted by the constitution.

Main Roads, Buses, and Metro

Main roads are often subject to tolls, which can be confusing when contracts have allegedly expired. The quality of local roads is a matter of public debate and constitutes a conspiracy. Buses, while cheap, are overcrowded and not commonly used by the MCP. Metro trains are costlier than expected, serving as a one-time novelty. Cleanliness is a priority, but it raises questions about the cost-effectiveness of government initiatives.

Government Protection and Services

The government ensures protection through various departments. However, the service may not always meet expectations. For instance, a police station visit for a lost wallet was met with a dismissive response. Internally, the Indian government has been criticized for its language policies, which can impact citizens' daily lives.

Fundamental Avenues

The Indian government supports various initiatives, such as the Amma canteen for affordable food, ration shops for poor, and alcohol services that operate even on holidays. Employment rules, salaries, and job security are all areas where the government has played a role. In the digital age, internet connectivity is improved with the help of private companies like JIO, though this cannot be solely attributed to government efforts.

Conclusion

While the government aims to serve the needs of its citizens, the effectiveness of this service often leaves room for improvement. Understanding how taxes are spent and which areas need reform can help in making more informed decisions. By working together, the government and citizens can address these challenges and ensure that the tax system truly serves the public.