State as shylock - II

Further to the previous post

This is concerned with the skewed tax-structure. The reason state imposes taxes and rates which can only be called unreasonable for the simple reason that it has to fund itself.
This means to finance the vast bureaucratic set up as well as ambitious welfare projects.

Since India has a bloated machinary it translates into inflated bills which are to be funded by taxation. This is aggravated by ever increasing numbers of welfare programmes and subsidies doled out on regular basis body politic consisting of fossils from socialist era, believers of competitive bankruptcy through populism and practitioners of ancient art of corruption.
Since oil is one commodity whose demand is relatively unaffected by the prices, it can be easily taxed*

And this is the reason that all the parties opposing the price hike whether BJP or Left are hypocritical, for they do not propose any viable solution. It is not their aim to downsize the babucracy or fold up the myriad schemes created solely for garnering votes (without which it is next to impossible to rationalize the tax structure).They are opposing the hike from purely opportunistic motives, trying to counter populism by populism. In the end, the only losers will be Indians.

* Not sure on this point