There is a need to reduce the tax rates in the coming budget or in the next GST council meeting, especially where the GST rates are finalized, Prof N.R.Bhanumurthy, Vice-Chancellor of Dr. B.R. Ambedkar School of Economics University, Bengaluru opined.
He delivered a keynote address at the inaugural of a two-day national conference on ‘Multi-Pronged Responses and Resilience to the Pandemic-Driven Crisis: From Socio-Economic Spheres in the Indian Context’ at GITAM School of Humanities and Social Sciences (GSHS), Hyderabad on Tuesday, in collaboration with Council for Social Development (CSD) Southern Regional Centre, Hyderabad.
“Macro policies are meant for improving savings in the economy. The Indian economy is largely a savings-led economy. We are one of the largest savers in the world. This is how we are growing much higher when compared with other countries.
But, in the last couple of years, many of the policies are actually against savings. If at all you have grown at 8 or 9 percent or if you want to become a five trillion economy, the savings becomes the most important and least discussed in the macro policies” Prof. Bhanu expressed his dismay.
Until and unless you bring back the original FRBM Act of 2003, you are not going to see that public debt coming down to 70 or 60 percent as the FRBM committee suggests, he said. While dealing with the physical situation, he said that the kind of discussions happening in the states is going to lead to the worsening of state finances.
So, the state finances are absolutely in a very bad shape, post 14th Finance Commission we have seen a sudden increase in the devolution from 32 to 42 percent, but the deterioration of state finance has actually started from that time, he explained. If the old pension scheme revived, that would be the last nail of the coffin, he added.
Prof. Surajit Mazumdar, Jawaharlal Nehru University delivered a keynote on ‘The Covid Pandemic, Global Economic Crisis and the Future of India’s Economy’. Dr. Mandar V. Kulkarni delivered the welcome note and Dr. Satyam Sunkara of the Council for Social Development proposed the vote of thanks.
Prof. D.S.Rao, Pro Vice-Chancellor, GITAM, Hyderabad presided over the inaugural session. Prof. D.R.P.Chandra Sekhar, HoD, English also participated on this occasion. The conference would continue till Friday evening.