The Trump trade shock is a chance to push long-overdue reforms, rather than tinker with tariffs to appease the US, suggests M Govinda Rao.
'The finance minister missed yet another opportunity to simplify the income tax structure in the Budget.' 'This was an opportune moment to get rid of the old tax system entirely and move fully to the new system,' asserts M Govinda Rao, member of the 14th Finance Commission.
Reform ideas do not occur overnight and evolve over the years.
Indian policy makers will have to evolve an exit strategy that maintains high growth with price stability.
It's important to make the penalty system an effective deterrent to ensure greater efficiency in the tax system, says M Govinda Rao.
Direct Taxes Code will make politically difficult changes feasible
The revenue foregone due to tax incentives in 2009-10 is estimated at Rs 5,40,269 crore.
Legislation on fiscal discipline will not help unless government is ready to bite the bullet.
Although not intended as fiscal stimulus, the unprecedented fiscal expansion during 2008-09 and 2009-10 did help in combating the economic slowdown, but it cannot continue and measures must be initiated to chart a route for fiscal consolidation.
A lasting solution to poverty and backwardness cannot avoid focussing on poorer regions.
A good tax system should minimise the cost of collection, compliance cost and the cost to the economy in terms of the distortions it creates while generating revenues.
M Govinda Rao hopes the Budget will contain the deficit while continuing to create conditions for pushing growth.
G20's success will hinge on outcome of follow-up measures
Several questions arise on the appropriateness of the measure in the already strained fiscal scenario, says M Govinda Rao.
Unlike the usual fanfare seen in the media, the Interim Budget this year has been a low-key affair. Everyone seems to be disappointed.
The time is opportune for realty firms to switch over to building affordable houses.
One area where a fiscal stimulus package still needs to be worked is at the state level.
An important fallout of the increasing crude oil prices is the sharp rise in unfunded liabilities.
India ranks at 165 among the 178 countries and among the South Asian countries, it is the lowest
The Budget should extend service taxation to all services and unify the rate with excise duty.
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