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

Articles By Surajit Das

Some Concerns Regarding the Goods and Services Tax

The proposed Goods and Services Tax would aggravate the already high degree of inequality in the country, and would inevitably curb the fiscal autonomy of state governments significantly. Contrary to the government’s claims, the implementation of the GST would not automatically enhance growth rate, reduce inflation or improve tax compliance. The calculations of the revenue neutral rates depend on various assumptions. Different states should be allowed to set their own state–GST rates with provisions for an entry tax. More emphasis should be put on direct taxes rather than the GST for improving India’s abysmally low tax to gross domestic product ratio.

Death in Police Custody

On Financing the Fiscal Deficit and Availability of Loanable Funds in India

A higher fiscal deficit - financed by domestic borrowing - does not necessarily crowd out private investment by limiting the availability of loanable funds for the private sector. The fiscal deficit always finances itself and the investment always generates an equal amount of ex post savings. The supply of money is always demand-determined and credit-led at any given interest rate. The available empirical evidence from India also substantiates this.

Status of Agriculture in India

This paper looks at trends in the growth of agricultural production in India over the last one and a half decades, identifies factors that affect agricultural growth and analyses constraints that have affected growth in the sector. On this basis, projections have been made on the future growth of the sector in the medium term, coterminous with the Eleventh Five-Year Plan. All-India level and state-wise analyses highlight the role of public investment/ government expenditure on agriculture as being the crucial determinant in stepping up the rate of growth of agricultural production. Given other factors, a consistent increase in public investment to 15 per cent per annum should lead to agricultural growth of 4 per cent, which is concomitant with the projected growth rate in the Eleventh Plan. The other factors that are important for a higher agricultural growth are fertiliser usage and agricultural prices.