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

N J JhaveriSubscribe to N J Jhaveri

Budget 2007-08:An Eventful Non-Event

The union budget for 2007-08 continues with ill-conceived tax measures and there remains no action, despite knowledge of the problem, to counter the undesirable effects of bad governance and incompetent management.

Industry Must Assume Leadership in Reforms

For Indian manufacturing to survive and prosper amidst rapid globalisation of the economy, it must limit the extent of help sought from the government and learn to initiate a self-help and self-regulation approach. Industry associations must restructure themselves to play an active role in transmitting change and collectively force governments to reduce bias against manufacturing.

Direct Tax Reform

The Consultation Paper on Direct Taxes makes a strong and cogent case for the autonomy of tax administration, for transforming it into a taxpayer service department and for the abolition of fiscal incentives. A critical review.

Holding Company for Public Sector Enterprises

The institution of the holding company, successfully used by the private sector to manage a portfolio of businesses, could be a powerful tool for addressing several structural problems of public sector enterprises and for managing disinvestment with a long-term perspective.

Seven Tests of a Good Budget

This essay seeks to provide a framework for evaluating budgets in the context of the economic reform programme. The seven effective tests of a good budget proposed are: (i) How well does the budget balance the country's fiscal books? (ii) How well does it meet the counter-cyclical needs of the economy? (iii) How well does it achieve fiscal consolidation? (iv) How good are the tax reform measures? (v) How good are the expenditure reform measures? (vi) How well does it improve the environment for growth acceleration? and (vii) Finally, does it restore the credibility of the government?

Is the Budget Becoming a Fiscal Non-Event?

As a corollary of market reforms, monetary policy and particularly interest rates have become the most important policy instrument, though the Reserve Bank of India's actions receive far less public attention than the annual budget. All the same, the primacy that the budgets have traditionally enjoyed in the Indian context must be used to focus on policy issues.

For a Financial System That Works

N J Jhaveri On Improving the Effectiveness and Efficiency of the Financial System in India by V V Bhatt and A Hasib; Indian Council for Research in International Economic Relation, New Delhi, 1994; pp vii + 118, price not mentioned.

Budget and Private Corporate Growth

N J Jhaveri The 1985-86 Budget has to be seen as part of the overall economic changes being brought about with a view to creating a favourable environment for growth of the private corporate sector The increased disposable incomes offer an opportunity to the private sector to mobilise additional resources. While at the operational level there might remain some wrinkles and some uncertainties, such as inadequate infrastructure facilities, may continue, the ball is, by and large, in the court of 'he private sector.

Tax Changes, Government Expenditure and Plan Outlay

and Plan Outlay N J Jhaveri While it is understandable that all categories of tax-payers should expect a lowering of tax harden, the question of tax rate changes needs to be discussed in the right perspective. Moreover, front the point of view of their impact on the economy, aggregate government expenditure. provision for public sector plan outlay, etc, are important aspects of the Budget. The purpose of this article is to discuss some of these facets of the Central Budget for 1984-85.

Budget as an Instrument of Development

N J Jhaveri Any assessment of the government's budget based on financial data atone is naturally incomplete. Despite this limitation, however, the acute difficulty encountered by Finance Ministers in enhancing the investment component of incremental resource mobilisation in the recent years has been obvious. Financing of revenue expenditure out of potential or actual savings is clearly harmful The economic effects of raising 'additional' resources, which are often largely in the nature of intra-public sector transfers, similarly need thorough examination. All the more so, when the same tax base is often exploited by governments at different levels.

Central Budget 1982-83

N J Jhaveri The Budget for 1982-83 appears to have fallen short of the expectations of business and industry and the salariat. Its failure in this regard sterns partly from the exaggerated expectations that had been raised and partly from the many factors which have rendered Budgets an exercise in keeping the Five-Year Plans going as best as possible. The 1982-83 Budget's support to the Sixth Plan is only modestly higher than its predecessor's and even this modest increase has been achieved with great difficulty. While the Budget has taken several steps in the right direction, many of them are taken haltingly, primarily because resource mobilisation is becoming an increasingly difficult, exercise.

Budget, Investment and the Economy

The Chayanovian View of the Agrarian Question and Its Fundamental Fallacy", Journal of Peasant Studies, July 1979. For an illuminating discussion of the concept of subsistence in a market economy, see Ashok Mitra; "The Concept of Subsistence'; Economic Weekly, May 25, 1957. J have shown how peasant families may be pushed by capitalism or capitalist colonialism into a position of "last-resort subsistence" in my forthcoming book, "Political Economy of the Third World" chapter 6.

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