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THE
PROPOSAL in the Union budget for 1992-93 to allow gold
import will help the government counter the menace of black
money and fight inflation. Besides, the move will yield
Rs. 750 crore in customs revenue, provide jobs to gold smiths, and boost exports of gold ornaments.
These
views were expressed by Dr. J D Agarwal, director, Indian
Institute of Finance, during a panel discussion organised
by the Institute of Economic Studies here at the India International
Centre.
On the future macro-economic scenario, the professor said
the economy would grow at around four per cent , and it
would be possible to attain a single digit inflation rate
of 8 to 9 per cent.
Dr.
Agarwal lauded the budget as one intended to help people
from, all walks of life, but expressed his dissatisfaction
with the inadequate provision for infrastructure and social
service.
He lelt that the budget should have attempted at removing
the implicit subsidies given to higher education, irrigation
and electricity, in a phased manner.
On
the revenue generation front, Prof. Agarwal said the government
should have focused more on generating non-tax revenues.
He, however, welcomed the introduction of presumptuous tax
on shopkeepers, which is expected to net Rs 140 crore.
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He
also lauded as meaningful rationalisation and simplification
the proposal to club the tax reliefs under 80 CCA and 80
CCB with section 88.
This move along with the proposal to take into account a
minor’s income for computing purposes would bring
about one lakh more tax payers in the tax net, without affecting
the poor and the lower middle class, Dr. Agarwal said.
The
professor, however, expressed his reservation on how far
the government would be able to push through its personal
tax rationalisation package, and said that it would restore
some of the earlier reliefs in due course.
Moreover, Dr Agarwal criticised the budgetary move of withdrawing
relief under section 80L. He also said that the government
should not have reduced the carried forward depreciation/
investment allowance by one-third.
Instead,
it should have introduced investment allowance for the corporate
sector to provide a stimulus to growth.
According
to Dr. Agarwal, the government should have come out with
a scheme to increase productivity of the debt it owes so
as to reduce the burden of interest payment in future.
Mr.
Jaipal Reddy, of Janata Dal and Mr. R N Lakhotia, tax consultant,
were the other participants in the panel discussion.
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