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

Articles By S L Shetty

Corporate Tax Reductions

The claim of sharp reduction in effective corporate tax rate to 25.11% does not, in fact, represent any significant reduction in the tax burden that the companies bear at present, and hence, the fiscal instrument available for improvement in corporate investment gets blunted. Apart from frittering away the tax potential, this measure will shift the tax burden to individuals. Also, several non-manufacturing companies and a handful of large companies are likely to benefit from the measure.

 

Indian Statistical System in a Troubled State

The recent furore about key economic statistics in India could only dent the age-old reputation of the official statistical cadre. However, if government control continues trampling upon the autonomy and integrity of the official statistical institutions in the country in this manner, then their reputation of competence and impartiality stands the grave risk of being marred in no time.

Trends and Patterns of Household Indebtedness

Based on the data from the All-India Debt and Investment Surveys, a re-emergence of non-institutional credit agencies in the incidence of household indebtedness is found since the 1990s, especially in the rural areas, reflecting the inadequate social commitments of the institutional agencies due to their contemporary organisational deficiencies. The data, however, do not seem to capture the extent of urban distress in totality. Yet, given the general dearth of evidence on the status of household indebtedness over time, institutions like the Reserve Bank of India and the National Bank for Agriculture and Rural Development should revisit this information to resurrect their roles in strengthening credit delivery to the general population.

Demonetisation: 1978, the Present and the Aftermath

In the context of the demonetisation of ₹500 and ₹1,000 notes, the issuance of currency and its different denominations are traced over time, while also tracking key macroeconomic features of India's changing economy over the decades. Further, the possible immediate and longer term economic effects of demonetisation are discussed.

Budget 2016

Yet another opportunity--this time blessed by windfall gains from lower global crude oil prices--has been bypassed. Budget 2016 sticks to fiscal consolidation and ends up producing a budget where off-budget borrowings help the numbers showing fiscal rectitude and the budget unrealistically increases tax revenue, and within that focuses on the more regressive indirect taxes.