CHENNAI: “The confusion over handling the non-performing assets (NPA), the hurried implementation of Goods and Services Tax (GST), the delay in amending the Fiscal Responsibility and Budget Management (FRBM) act which will enable the government to print its own currency are the three elements that are preventing the high growth of Indian economy,” columnist S.Gurumurthy said here on Sunday. He was moderating a discussion on union budget 2018-19 at VIT Chennai campus on Sunday.
In his opening remarks, he said, “The government does not have a coherent policy because of the confusion on how to handle it and the insolvency law is not the best method to handle it. I protested against the government for rushing through the GST in an unprecedented manner.”
The GST has lesser positives and more negative points, he added. Pointing out the examples of Japan, US and European Union he said it is very much
essential for the government to have the power to print money and the FRBM act needs to be amended.
“This is the first budget which does not have any major disturbance to the economy. The first two budgets focused on course correction to lift the
economy. The third budget got a huge demonetisation shock which was a tectonic change. The fourth budget was hit by GST,” Mr.Gurumurthy noted.
He further said the two fundamental shifts (demonetisation and GST) are a great attempt to formalise the informal economy.
VIT Chancellor G. Viswanathan, who presided over the discussion, said, “After the demonetisation and GST, the number of taxpayers is expected to go up to 5 per cent from 1.5 per cent.” Quoting a study, he said the top 1 percent in the country controlling the 73 percent of the country's wealth. “Along with the
economic growth the inequality is also growing,” he said.
D.Raja, MP and national secretary, CPI said, “The central government has given concession to corporate houses to the tune of '2.4 lakh crores whereas the common people are facing issues like unemployment and underemployment. This budget fails to address the question of unemployment.”
“The agriculture has been let down, women have been let down by the people. This present budget is not growth oriented. This budget is a desperate attempt to woo the people keeping an eye on the elections, he stated.
Calling for a new approach in our economy, T.K. Rangarajan, MP and central committee member, CPI (M) said, “The new approach should benefit our ordinary people, educated people and it should provide employment.”
He also said, “The purchasing capability of the common man has come down. For the past 20 years, in both the Congress and BJP governments the production in agriculture is stagnant. There is no investment in the manufacturing for the last four years. This economic growth does not provide any jobs.”
DMK MP TKS Elangovan, AIADMK MP T.G. Venkatesh Babu and Narayanan Thirupathy from BJP and Swarnah Sethuraman from m Congress others have participated in the discussion.
