New Delhi, Feb 17: Assocham today said Tenth Plan target of eight per cent GDP growth was achievable if government stressed on including rationalisation of tax structure, stricter expenditure control and performance linked incentives in the forthcoming budget. Presenting medium-term fiscal scenarios in the shadow Budget 2003-04, the chamber pointed out that Kelkar Committee's recommendations would benefit the exchequer while emphasising on the need for stricter expenditure control and conditional and performance linked incentives.
It also said finance minister would have to create a conducive business environment to borrow and invest while imparting stability to customs duty rate.
Asking government to do away with administered interest regime, the Associated Chamber of Commerce and Industry said gradual alignment of interest rates on small saving with market determined rates would lead to a fall in fiscal deficit and also bring down government's interest burden over next five years.
Speaking at the session, leading economist Surjit Bhalla said administered interest rates were responsible for corporates taking recourse to investing in guaranteed government securities and fighting shy of borrowings at double digit rate to finance new investments.
Tax expert, Subash Lakhotia said government should not take away incentives given to exporters and industry in backward areas to achieve higher growth. Bureau Report