governance, political economy, institutional development and economic regulation
Tough reform decisions are best taken in times of grave crisis not when the going is good. Economic reform, at the best of times, is highly disruptive. It makes little political sense, in the real world, to throw away the benefits of a stable, growing economy, in the hope that the future would be brighter […]
Read More BJP needs a consistent Economic IdeologyNormally, the fate of the next fiscal is sealed even before the year begins. Barring windfall gains, the economic engines of value addition are quite stable — business keeps running and salts away its surplus; the government similarly keeps churning out public goods; and individuals — particularly us Indians — keep squirrelling away something for […]
Read More Fiscal 2018-19: Revive shared hopesMuscular tactics are paying-off in the Income Tax system. The number of assesses went up by an astounding 25 percent from 37 million in March 2016 to 46 million, by March 2017 and to 63 million by mid-July 2017. The linking of Aadhar-PAN card to bank accounts; the campaign against cash and now the GST, […]
Read More Rooting out perverse incentives in GSTLast week’s “revolt” by senior income tax officers, meeting in Mumbai, against alleged micro management by the Union Revenue Secretary is unlikely to bother the average citizen. If anything, citizens would welcome glitches in tax collection behind which they can hide. Mind the growing gap But the revolt deserves attention because it illustrates a growing […]
Read More The tax collectors’ revolt(photo credit: dailymail.uk.co) February is when the Indian Finance Minister (FM) gets flooded with unsolicited help from well-wishers on how to get his job done of presenting the Union government’s annual budget on the 28th. This time, the flood is a Tsunami as a consequence of the Delhi state assembly electoral debacle for the BJP […]
Read More The budget of small things(photo credit: http://www.gettyimages.com) For the small, timid investor and retirees, Provident Funds and Postal Savings were the investment vehicles of choice till 2000. Interest rate liberalization resulted in a progressive decrease in interest levels on long term deposits from 12% to 8.5% per annum. The reform was sensible. Government could not afford to subsidize the […]
Read More Winning Aged Votes via Budget 2015