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Survey outlines reform agenda for pushing growth
February 27, 2003 12:27 IST
Stung by the low 4.4 per cent growth projection for this fiscal, the pre-Budget Economic Survey on Thursday endorsed Kelkar Panel recommendations on tax reforms besides a cut in subsidies and interest rates to deal with mounting and worrying fiscal deficit.
Setting the reform agenda for the Budget, the 2002-03 Survey, tabled in Parliament, singled out deteriorating fiscal situation as a "major challenge" and listed labour reforms, divestment, overhauling of regulatory regime including agriculture, and removal of infrastructural bottlenecks as other priority areas to achieve robust 8 per cent growth.
Mooting a two-pronged strategy of augmenting revenues and restraining expenditure for fiscal consolidation, it said
modernisation of tax administration, broadening the base and restricting the exemptions are needed to improve revenue collections, essential for fiscal consolidation.
Admitting that drought would pull down overall growth rate to 4.4 per cent this fiscal as against 5.6 per cent in
2001-02, the Survey said revenues from recovery of user charges have to be tapped besides phasing out tax exemptions and plugging evasions.
The survey gives no growth projections for the next financial year but said growth recovery was already visible.
However, without fiscal consolidation there was a risk that the pre-emption of resources by the government will crowd out the nascent recovery in private investment.
PTI
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Number of User Comments: 4
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Sub: Survey ..reform agenda
The state needs to broaden its tax base. If it does not have the know-how, then it should look to countries like the US to ...
Posted by bodh
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Sub: Comments on Economic Survey
Dear Sir, I'm a student of National Law University(Jodhpur). Today I came across with ur article on the Economic Survey of 2002-2003. I wan to ...
Posted by Bhupender Singh
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Sub: excise limit
please raise excise limit upto rs.2 crore as special gift to ssi units thanking you, vijay
Posted by vijay panchal
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Sub: Kelkar's recommendation
Mr. Kelkar's recomendations are necessary to be implimented to meet with various nation's requirements.Also people in higher income slab above Rs. 5 lacs as taxable ...
Posted by Vikram Shah
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