The economic survey was tabled in Parliament today
and suggested several fiscal measures.
survey states that measures need to be taken to revive
the corporate debt market and encourage institutional
his statement, the Finance Minister said,"Regarding
concern about the rising prices we share the concern and
we have taken a number of steps to moderate prices and
we will continue to take steps. The most heartwarming
aspect of the economy is that both gross domestic sales
and gross domestic investments have moved up very sharply."
to the survey, tax exemptions will cost the government
a little over Rs 1 lakh crore in lost revenue. The survey
calls for a friendly tax administration.
Chaudhari, the economic advisor of ICRA, states, "I
think the FM is suggesting both that he will take some
fiscal measures and that monetary measures may be taken.
He is suggesting that on both they will have to remain
on guard. There is no one set of instruments available."
He adds that there is a possibility that external duty
cuts, excise duty cuts on one hand and on the other hand,
a further hike in interest rates is possible.
also says that while the peak rate of customs duty was
brought down to 12.5 per cent this year, the rate actually
collected for 10 groups was 11 per cent, down from 14
per cent last year. VAT collections for the first half
of this year was up 26 per cent.
survey also calls for an increase in domestic production
of staples like rice, wheat, cooking oils and pulses through
better technology. It adds that , in the short run, there
will be a gap between the remunerative price paid to farmers
and fair price toconsumers
but these should not translate into increased food subsidy.
survey states that customs duty collection rate is 11
per cent down from 14 per cent and further tax reform
is needed it also says that expenditure control is not