Realignment of Economic & Tax Policies for Development and Poverty removal required : Study

By: Finance India
 
GREATER NOIDA, India - Sept. 25, 2019 - PRLog -- Realign economic policies for development and poverty removal urged Mr. Mohd. Haleem Khan in a study published in latest issue of Finance India – The Quarterly Journal of Finance. Mr Khan suggests that prolonged public fiancé architecture with difference is required.  Mr. Khan was former Secretary, of Disinvestment, Ministry of Finance, Government of India.

The study  proposes a five prolonged public finance architecture that includes comprehensively to institutionalize the intergenerational equity. Public expenditure prioritization that factors its revenue nexus depoliticize poor and opulence definitions, remainant of Macaulayism against skill development as part of literacy be done away with & to universalize access of green technologies and institutionalize life cycle pricing.

According to Mr. Khan, India is a immense socio cultural diversity and magnitude. India would hardly qualify to be considered a legal jurisdiction amenable to thumb rule prescriptions. Her genius must propel her to work with typically home grown solutions in the light of her own past experiments with success and vicissitudes of efforts across the legal jurisdictions near and afar. Mr. Khan supports the contentions of MCKinly's(2004) Millennium Development Goals of having extreme income poverty by 2015 that poverty reduction is of overriding importance.

According to the author Tax systems should be more equitable as well as more efficient. The poor should not pay proportionately more taxes that the rich nor should they receive proportionately few are public benefits.

Fiscal policies are needed to play a number of cyclical role in stabilizing the economy and to accelerate growth, state the author. Within this context public investment plays a crucial role in accelerating the rate of Economic growth, both for providing demand stimulus to the economy,  expanding its productive capacity and in allocating resources to the poor. Neolioberal economists often argue that increasing public investment will enlarge public deficits and that these, in turn will fuel inflation, depreciation of the exchange rate and higher real rates of interests. There is a little empirical evidence to support this.

According to the author there should be a creation of a Sovereign Fund in which shall flow non-recurring receipts year after year by bringing amendment in article 266 of the constitution of India to institutionalize the inter generational equity concerns. The corpus available whuld be available for investment and not for the proverbial "selling the family silver to pay the grocery bills".

The author  also suggests poverty line and income tax slabs be more scientifically determined based on some percentile of the distribution continuum of income earners and their contribution to GDP. Author suggests that Skill as a part and parcel of literacy should also be present. International organizations  should also make green technologies easily available.

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