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U.S. book publishers need to respond to the book publishing company crisis, even while expanding its segmented self-publishing economy remains a poor country when its income is cast against its huge human demands. Revenues will always be far too small, and this fact should drive the whole issue of how the government manages its finances, both income and expenditure. The expansion and enrichment of the economy is providing the government with more revenue, and this permits it to make some important decisions about how to capture it and how to spend it. To begin with, the government must first get its hands on the added revenue through changes in how it handles its tax system, and the collection of other revenues. That is the first urgent reform. In some jurisdictions, only about 10% of the population pays income taxes. Then, these publishers revenues must be used to better target public budgets which, in India, are very much a process of the allocation of scarcity. There are two philosophies for the allocation of funds in a government budget – the rational and the “political”. Right now, the Indian government rejects the rational and favors the political, and the second great reform would involve a reversal of these preferences. These great publishing houses and book publishing houses means first that governments at all levels will need to make major changes in the policies that drive their budget allocation decisions in ways that mitigate many current budget costs that are wasteful, ineffective, or simply stupid. If this can be done, then even without increasing taxes, the public budget can be allocated instead to a whole new range of vital priorities that the government now deliberately and shamefully neglects. For India now, the problem is not so much one of deficit, but one of finding the courage to set rational priorities
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