Inflation needs to be contained through a combination of fiscal monetary and administrative measures. This requires cordinated efforts on the part of Cetral , States amd the Reserve Bank of India. without any reservations among themselves. The three deficits food, fertiliser and fuel which cause the fiscal deficit need a very sensitive handling in such a way that the rich and undeserving people do not stand to be subsidised by the Governement. The taxes which have an inflationary impact need to be pruned down considerably and this is an exercise by itself as the loss of revenue has to be made up through other measures. The taxes like STT, income tax, educational cess, luxury tax on high end vehicles, dividend tax on dividends above a cut off limit, foreign travel tax whicr are not inflationary in character can be hiked and some more such taxes need to be identified to augment revenues.Along with these, apt monetary measures coupled with strong administrative measures capable of containing corruption, hoarding,facilitating storage,transportation and distribution of food items without wastages at any stage can bring down inflation. Anything is possible and ache din is within reach,provided the mindset is attuned towards the target with close monitoring and follow up.The ensuing budget is an excellent tool and it is a chance for the new Government to show its mettle to meet the aspirations of the people to have ache din ahead.
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