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

Articles by V N KothariSubscribe to V N Kothari

Disability-Adjusted Life Year as a Guide-for Health Policy

for Health Policy V N Kothari I S Gulati The question of efficiency in public health expenditure is lately attracting considerable attention at the hands of health economists. The World Bank's World Development Report, 1993 advocates measuring the burden of disease in units known as disability-adjusted life years (DALYs). This paper discusses the limitations of the concept and tries to bring out the implications of adopting DALY as a policy guide in the pursuit of health care objectives, particularly in a developing country such as India.

Income Tax Concessions

Income Tax Concessions V N Kothari R H DHOLAKIA and B H Dholakia (EPW, July 18, 1987) have raised questions about the conclusions reached by me (EPW, February 21,1987) in regard to extending and widening of income tax concessions on investments in specific financial assets. According to them, I have reached very serious conclusions on the basis of a broad analysis of income tax revenue/GDP ratio and some limited hypothetical arguments. Secondly, according to them, I have totally ignored the possibility that the taxing authority can have, besides equity, a variety of other objectives, Thirdly, the full or partial exemption of interest income, that I recommend is regressive, unsound and not conducive to the growth of receipts to the government as compared to the present policy of income tax concessions on principal amounts invested in financial assets. Fourth, according to the authors, from the long-run dynamic point of view, the policy of granting income tax concessions on the principal amount would lead to a steady and continuous stream of new investments through declaration of hitherto concealed incomes, without requiring a steadily rising limit of tax concession. On the other hand, my recommendation.of tax exemption of interest income would require a steadily rising limit of exemption to achieve the same result. This would adversely affect the future growth of the tax base. Therefore, according to the authors, my analysis is not valid and the existing policy of granting tax concessions on investment in specified securities is sound, prudent, equitable, less costly and conducive to the future growth of the tax base. Objections raised by the authors, offer me as opportunity of clarifying and elaborating my view point. Also in the process, I adduce fresh arguments.

Budget and Long Term Fiscal Policy

In this paper, the author examines the various components of the central government budget against the projections made in the Long Term Fiscal Policy (LTFP) paper The components which account for the huge deficit are discussed. Will it be possible to contain the deficit at the level indicated in the budget? Will it be inflationary? The paper concludes that there is a serious problem of resource mobilisation. Increased outlays on defence may be justified on grounds of national security. But periods of national insecurity are also periods of tightening of belts and increased efforts at resource mobilisation. This is altogether missing in the budget. While the expenditure projections of the LTFP have received a severe knock, our resource mobilisation efforts still continue to be constrained by the LTFP.

Income Tax Concessions, Savings and Interest Rates

Interest Rates V N Kothari This paper attempts to examine the process by which the income tax base is being eroded. A major narrowing of the tax base is occurring in the name of tax concessions as incentives for savings. What is new in the recent spate of tax concessions is the vast expansion of the scope of these concessions in terms of the exempted amounts and the variety of financial instruments which are eligible for such concessions.

Private Unaided Engineering and Medical Colleges- Consequences of Misguided Policy

Medical Colleges Consequences of Misguided Policy V N Kothari The current trend in professional education is towards the setting up of private unaided colleges which either demand donations or charge high fees. This has been due to the loss of government momentum in the development facilities for engineering and medical education after 1966/67. Instead of planning for expansion in this field, state governments have, on the grounds of resource constraints, allowed the setting up of private colleges.

Why Cut Engineering Admissions

Why Cut Engineering Admissions?
V N Kothari THERE is a proposal in official circles to cut admissions to engineering courses in 1968 by 30 per cent. This cut, it is said, would help case the increasing unemployment among engineers. This caim has no justification.

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