labels: industry - general
Cut wasteful subsidies: Assochamnews
04 January 2006

New Delhi: As next year's budget comes closer, industry chamber Assocham has asked the government to raise the tax-GDP ratio to over 15 per cent and trim wasteful spendings in subsidies to improve the financial situation.

While releasing 'Reforming Management of India's expenditure' Assocham president Anil K Agarwal said that a higher GDP ratio of 15 per cent was necessary given the country's current public finance crisis as the combined fiscal deficit of the central and state governments adds up to 9.4 per cent of GDP.

The study, jointly brought out by the Economic Management Institute, also urged the government to plug distortions and leakages in expenditures.

Out of the total budgeted expenditure of Rs5,14,344 crore for 2005-06, the chamber said about 12 per cent goes waste in terms of subsidies for food, fertiliser and petroleum products.

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Cut wasteful subsidies: Assocham