THE tenth finance commission should concentrate
on devising way for the centre to mop up around Rs. 200,000 crore
by the turn of century to meet the nation's necessary requirements.
Instead of suggesting the widening of tax base or raising of tax
rates, it should pay greater attention to improve efficiency in
tax collection, feels India Institution of Finance director J
D Agarwal.
Even
by simple estimates, he figures that the centre might need between
Rs. 160, 000 crore in 1995 and Rs. 200, 000 crore in 2000. According
to him, the route of raising funds through tax revenue has its
own limitations and becomes counter productive beyond that limit.
According
to Agarwal there should be strict control of wasteful spending
by both centre and states, reduction of implicit and explicit
subsidies currently given to electricity, transport and higher
education.
Agarwal
also criticised state public sector undertaking for not taking
adequate steps to increase efficiency and monitor their performance
vigorously.
