No Tax Exemptions

I heard that government is seriously planning to revoke all tax exemptions! What are they planning? I am not against paying taxes but taxation should be rational.
Even if we pay taxes, the roads are bad.
There is no proper drinking water.
Electricity is interrupted often.
Health is poor.
There is no social security system.
Even after that if there is some constructive project, they beg for private participation.
Don't get me wrong, but are the fruits of our taxes truly reaching us? And, if we save money in government funds, why should we be taxed? And, if the tax exemptions go, will anyone save anything in government funds (PF, infrastructure bonds etc)?
First of all, everyone needs to save for his future because there is no social security in India. If they do not save, everyone will be at the mercy of their children. To be self-sufficient and not be a burden, we must save for old-age. Note: I am not talking about investments which is a mode of earning. Since government does not provide social security, health-care and food, it has a moral responsibility to promote savings. And moreover, if these savings are going to government pocket, so, there must be tax exemption on those vehicles.
The exempt, exempt, tax policy is flawed in principle. First of all, there is no tax exemption, it is only a rebate that we get. People are saving for the future, no one knows what will be the tax rate/policy 20 years down the line. Now, if a person saves thinking that he will have a certain amount of money in old-age. Now in reality, no one can predict the inflation or the future tax rate. So, the person with savings gets only a fraction of what he has saved. He will feel cheated. How will he survive the old age?

If government is planning no tax exemptions, let it be this way:

1. Tax the whole salary, no rebates. After that there should not be deduction on withdrawing that money. This is regarding the government funds.
2. Cover more junta in tax net. Currently only 11% of the population pays taxes. The total revenue will increase.
3. Why will anyone save in government funds? Guarantee that the returned amount will be 8-9% interest. And this should be a no-risk fund.

And be accountable, the returns of taxes should be visible in the quality of living provided to the citizen.