ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Term Finance for Agriculture-Case for Institutional Reorganisation

September 30, 1972 terms may be said to be adequate, being 71 per cent and 97 per cent, respectively. But considering that costs have turned out to be far higher than estimated in the plan, the achievement in physical terms falls far behind targets.

Tangled Web of Centre-State Finances

Tangled Web of Centre-State Finances THE Union government has strenuously sought to maintain that the constitutional provisions relating to Centre- state financial relations have stood the test of time and that there is no case for any substantial change in them. Yet, these relations have grown so complex over the years that time is ripe for a fresh look at them, even if it is to be within the existing constitutional provisions. The terms of reference of the recently appointed Sixth Finance Commission, however, fail to reflect any awareness of this need.

Lower Taxes plus Evasion

Lower Taxes plus Evasion Charvaka THE enthusiasm with which the business community has welcomed the Wanchoo Committee's recommendation to reduce the tax rates on personal income at all levels and in the process to bring down the maximum marginal rate of income-tax from the present 97.75 per cent to 75 per cent is difficult to understand. Surely, the intention of the Committee was not to provide tax concessions, but to check tax evasion. In the opinion of the Committee, "the prevalence of high rates is the first and foremost reason for tax evasion"If this is the logic of the proposed reduction in tax rates, then tax payers have little reason to be so jubilant about the suggestion, because when it is implemented they will be paying, if anything, more by way of taxes than they do now. Therefore, if the business community is jubilant today, it is because they are pretty certain that under the Wanchoo Committee's dispensation, they will have both reduced tax rates and tax evasion.

Mopping Up the Agricultural Surplus-Limited Role of Direct Taxes

Man in the coming year so that finance at least would not be a constraint on performance. It' Is now for the organisational and 'administrative machinery to show results and if it does the prolonged deadlock in the development process may at last be broken.

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