#IndianDataDollar: A whitepaper (Version 1.0: Sixth Page)

 Contd from Page 05....

Assume...............................................................................Don’t forget that USD:YUAN peg was used as a great monetary tool by China for building its export-led economy 20 years back. Let us call this pegged token Indian Data Dollar (IDD). It virtually means INR 36.5 trillion worth of new money over next 10 years.

4.2 Three pools of IDD and tokenomics

An amount equivalent to INR 36.5 trillion may create serious prejudices in certain minds. That is why it is important to clarify that this is not easy money created by the Parliament of Indian for reckless spending. Before anybody mistakes this number, we need to remind that the current money supply (M3) in India is nearly INR 195 trillion. In 2010, it was only INR 50 trillion and it was INR 9.9 trillion in 1999. India is a large nation with increasing money supply. India has witnessed nearly 15-17% growth in money supply for the last 30 years or so. It is a developing country with increasing needs. If you add INR 36.5 trillion to INR 28.74 trillion worth of currency supply with public today, it comes down to INR 65.24 trillion. Over a period of ten years, this comes down to CAGR of 8.54% that is lesser than half of CAGR for the same. It is also not very high with respect to consumer price inflation. Secondly, all this new money (IDD 3.65 trillion or INR 36.5 trillion) is neither M0 nor M3 in the traditional sense of the term. RBI does a regular job of issuing fresh currency into the public and bank lending creates a fresh money supply too in the economy. It is the combined impact of these two actions that affect the money circulation. The idea here is to not get caught in the technical definitions of money supply and create three following pools for distribution with dedicated shares for each:

1. Universal Basic Income (UBI) Pool with an allocation of 26%
2. Telecom Pool with an allocation of 40% for all the telecom players
3. Currency Reserve Fund @34% to be used over next 10 years gradually

 

4.3 Universal Basic Income (UBI) Pool

.......................................................................................................................................................................................................The telecom sector pays GST on telecom services @18% as well as annualized gross revenue (AGR) share of telecoms is 8% in lieu of spectrum fees. This makes 26% net outgo from the fees received by the telecom players from Indians. This is the amount which is collected from the people and paid back to the people in the form of public expenditure by the government. What is proposed here is that 26% of the IDD supply should be distributed as advance income support to 1 billion data users of India and they should not be charged GST on their telecom bills as well as given 8% deduction on the bill in lieu of AGR exemption for the next 10 years. This is public money which is being given to the public and they are being assured that they will not have to pay it to telecom players in any form.

26% of 3.65 trillion tokens comes to the UBI Pool of IDD 949 billion or INR 9.49 trillion. If you calculate this money at a larger scale, it comes down to 4.86% share of GDP at current rates. It can be distributed to 1 billion data users of India in 10 equal monthly instalments of INR 949 each. In a family of four, it comes down to nearly INR 38,000/- in less than a year. If we make IDD payable for telecom billing, e-commerce portals & all PoS terminals pan-India, it will generate a huge uptick in Indian GDP. One..................