Inequality Kills’ Report

According to Oxfam India, “Inequality Kills” report, the wealth of India’s richest families reached to a record high in 2021. In the report, India was described as a ‘very unequal,’ country, as the top 10 people in India holds 57 per cent of the wealth. On the other hand, the share of the bottom half is 13 per cent.Report states that, 84 per cent of Indian households witnessed an income decline amid covid-19 pandemic.Richest 98 Indians own the same wealth as bottom 552 million people.Number of Indian billionaires increased from 102 to 142, during 2021.

Wealth of the top 100 families is Rs 57.3 trillion.

How inequality can be reduced?

• According to report, inequality in India can be reduced by taxing higher on richest 10 per cent of the Indian population, to help in funding measures of reducing inequality.
• This fund could cover schemes for health care, education, and social security.
• Oxfam further recommends to conduct at least two surveys every 10 years for measuring inequality and better social security for informal workers.
• As per Oxfam, 4 per cent tax on wealth of 98 billionaires can fund the mid-day meal programme for 17 years.
• 1 per cent wealth tax of them will be enough to take care of total expenditure for school education a7 literacy, or fund Ayushman Bharat scheme for more than seven years.

India- a very unequal country

• In the report, India was described as ‘very unequal,’ country, as top 10 people in India holds 57 per cent of the wealth. On the other hand, share of bottom half is 13 per cent.

What is the reason of higher inequality?

• Oxfam report highlights that, government tax revenues disproportionately depend upon indirect taxes, such as goods and services tax.
• This makes all people buying a product or using a service to pay tax at same rate.
• Thus, tax rate of poorer sections of society is similar to that of wealthiest, despite lower income. This has resulted into higher inequality in India.