Sponge Factor
For those unfamiliar with the term "The Sponge Factor", click the link for my previous post. While the previous post discusses corruption in Government spending, the same could be applied to Government income.
Government Income
Summary of Government income in 2G auction (from Wiki ) :
Actual income to GoI from the 2G auction : 0.10 Lakh crore
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Income absorbed by Corruption (Sponge Effect) : 1.75 Lakh crore
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Sponge Factor (income ) = Income stolen / Total prospective Income
= 1.75 Lakh crore / 1.85 Lakh crore
= 94.6
In other words, out of Rs 100 that should have gone to GoI's purse, Rs. 94.6 made its way to A. Raja and his group's purse. In the end, only Rs. 5.4 made it to GoI's purse.
But that is only one half of the story.
Overall Sponge Factor
The second half of the story is about how much of the money in GoI's purse is reaching the downtrodden.
Lets consider just the income from 2G :
Actual income to available at GoI's disposal : 10,772 crore
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Misused funds from expenditure (Sponge factor 50) : 5,386 crore
Income lost Corruption (from earlier section) : 1.75 Lakh crore
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Total income absorbed by Corruption : 1.80 Lakh crore
Sponge Factor (overall) = Income stolen / Total prospective Income
= 1.8 Lakh crore / 1.85 Lakh crore
= 97.3
In other words, out of prospective income of Rs. 100, Rs. 97.3 is eated by the rodent-infested system, and only Rs. 2.7 is likely to be actually spent on the downtrodden.
For those unfamiliar with the term "The Sponge Factor", click the link for my previous post. While the previous post discusses corruption in Government spending, the same could be applied to Government income.
Government Income
Summary of Government income in 2G auction (from Wiki ) :
- Swan Telecom, a new company with few assets, bought a license for 1,537 crore and sold 45% of the company to Etisalat for 4,200 crore (Total valuation of Rs 9,333 crore).
- A company formerly invested in real estate and not telecom, the Unitech Group, purchased a license for 1,661 crore and 60% of the stake was sold for 6,200 crore (Total valuation of 10,333 crore)
- All nine companies paid DoT a total of Rs. 10,772 crore for 2G licences
- Projected loss of income to DoT is Rs. 1.75 Lakh crore for 2G licences
Actual income to GoI from the 2G auction : 0.10 Lakh crore
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Income absorbed by Corruption (Sponge Effect) : 1.75 Lakh crore
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Sponge Factor (income ) = Income stolen / Total prospective Income
= 1.75 Lakh crore / 1.85 Lakh crore
= 94.6
In other words, out of Rs 100 that should have gone to GoI's purse, Rs. 94.6 made its way to A. Raja and his group's purse. In the end, only Rs. 5.4 made it to GoI's purse.
But that is only one half of the story.
Overall Sponge Factor
The second half of the story is about how much of the money in GoI's purse is reaching the downtrodden.
Lets consider just the income from 2G :
Actual income to available at GoI's disposal : 10,772 crore
---------------------------------------------------------------------
Misused funds from expenditure (Sponge factor 50) : 5,386 crore
Income lost Corruption (from earlier section) : 1.75 Lakh crore
---------------------------------------------------------------------
Total income absorbed by Corruption : 1.80 Lakh crore
Sponge Factor (overall) = Income stolen / Total prospective Income
= 1.8 Lakh crore / 1.85 Lakh crore
= 97.3
In other words, out of prospective income of Rs. 100, Rs. 97.3 is eated by the rodent-infested system, and only Rs. 2.7 is likely to be actually spent on the downtrodden.
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