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Eight per cent growth achievable: Kalam
New Delhi, Feb 17: Terming the ambitious eight per cent tenth plan growth target as achievable, President A P J Abdul Kalam today indicated that the budget would restructure the tax system on the basis of the roadmap laid out by the Kelkar panel.
New Delhi, Feb 17: Terming the ambitious eight per cent tenth plan growth target as achievable, President A P J Abdul Kalam today indicated that the budget would restructure the tax system on the basis of the roadmap laid out by the Kelkar panel.
"The imperative of fiscal consolidation requires that public finances are managed better. This can take place only through greater collection of revenue and controlling unproductive expenditure," Kalam said, adding Kelkar Committee's reports are a road map for creation of a "stable, transparent and efficient tax regime"
In his first address to the joint sitting of Parliament, Kalam said, “The ambitious eight per cent growth set out in the Tenth Plan was "achievable". It has distinguished itself from the previous plans by underscoring that it is not merely a resources plan, but a reforms plan.” Kalam said the process of disinvestment has gained irreversible momentum as part of the wider policy of economic reforms.
Stressing the need to control expenditure, Kalam said both the Centre and states need to rationalise their revenue expenditure and to target their subsidies better. The 12th Finance Commission which has recently been set up, will address these important issues.
Elaborating on disinvestment, Kalam said state governments are following this policy, which showed that there was "consensus" in practice. He said the proceeds from disinvestment reduce the burden of public debt, thereby releasing public resources for social and infrastructure sectors.
During the current year, out of 13 cases of disinvestment so far, 11 were of loss making units, he said, adding the procedures for disinvestment has established "benchmark" norms for transparency, efficiency, administrative simplicity and non-discretionary decision-making.
On the Value Added Tax system coming into being from April 1 this year, Kalam sought to set at rest apprehensions of the states that they would lose revenue in the initial period, saying the Centre has assured compensation for revenue loss, if any. Bureau Report
In his first address to the joint sitting of Parliament, Kalam said, “The ambitious eight per cent growth set out in the Tenth Plan was "achievable". It has distinguished itself from the previous plans by underscoring that it is not merely a resources plan, but a reforms plan.” Kalam said the process of disinvestment has gained irreversible momentum as part of the wider policy of economic reforms.
Stressing the need to control expenditure, Kalam said both the Centre and states need to rationalise their revenue expenditure and to target their subsidies better. The 12th Finance Commission which has recently been set up, will address these important issues.
Elaborating on disinvestment, Kalam said state governments are following this policy, which showed that there was "consensus" in practice. He said the proceeds from disinvestment reduce the burden of public debt, thereby releasing public resources for social and infrastructure sectors.
During the current year, out of 13 cases of disinvestment so far, 11 were of loss making units, he said, adding the procedures for disinvestment has established "benchmark" norms for transparency, efficiency, administrative simplicity and non-discretionary decision-making.
On the Value Added Tax system coming into being from April 1 this year, Kalam sought to set at rest apprehensions of the states that they would lose revenue in the initial period, saying the Centre has assured compensation for revenue loss, if any. Bureau Report