Further simplification of GST, implementation of direct tax code, initiating job-oriented growth measures and maintaining fiscal prudence were some of the key suggestions made by economists for the ensuing Budget to Finance Minister Nirmala Sitharaman on Friday.
The finance minister is holding customary meetings withdifferent stakeholders, including industry and farmers’ bodies. This was thesixth such pre-Budget consultancy meeting.
The economists were of the view that the Budget, to bepresented in the Lok Sabha on July 5, should set the tone for the next fiveyears and is a unique opportunity to promote manufacturing through ‘Make inIndia’.
They touched upon a host of macroeconomic factors likeeconomic growth, jobs, fiscal management, investments and public sectorborrowings, according to a release by the finance ministry.
Among other major suggestions were removing bottlenecks insupply-chain, framing EXIM policy for agriculture, doing away with specificduties on textiles, reviving inter-state councils for holistic domestic growth,skilling youths, giving fillip to services and manufacturing sector, andbringing structural reforms for a long-term growth.
Stability of tax rates, reduction in tariffs, furthersimplification of GST, implementation of direct tax code, promoting labourintensive sectors, constitution of independent fiscal policy committee andincentivising digital transactions were also made part of the discussions.
“I have basically talked about the external threats andopportunities because most people focus on fiscal monetary. So I said (it) is aonce in a generation opportunity of moving supply chain to India,” saidformer CEA Arvind Virmani after the meeting.
Manoj Panda, Director, Institute of Economic Growth, stressedthat the agriculture sector must be liberalised and farmers should be taughtlearn how to face markets.
The participating economists also underlined the need forbringing Insolvency and Bankruptcy Code type framework for NBFC sector,infusing capital in banks and tapping into e-commerce’s potential for jobgrowth.
Rathin Roy (CEO and Director, NIPFP), S Mahendra Dev (ViceChancellor, Indira Gandhi Institute of Development Research), Shekhar Shah (DG,National Council of Applied Economic Research), T N Ninan (Chairman, BusinessStandard), Sunil Jain, (Managing Editor, Financial Express), and Surjit SBhalla (MD, O(X) US Investment) also put forth their views during the meetingwhich among others was also attended by top officials of the ministry.Other prominent economists in the meeting wereRakesh Mohan, Nitin Desai, and Soumya Kanti Ghosh (Chief Economist, SBI).