Central GST to boost growth plans for India Inc
Arun Jaitley, the finance minister did the curtain raiser for the budget though the Economic Survey FY14 in the Parliament. The government is all set to provide boost to the farming sector, infrastructure financing, energy and taxation. Leading by example, Jaitley may announce a central goods and service tax (CGST) that combines excise duty and service tax as a precursor to a full-fledged GST where principal state taxes would also be included later.
The survey mentioned that once CenGST is implemented and the information technology system for it has worked, (revenue) estimation risk will be lower and it will be easier for the Centre and the states to move to the GST.
Unfortunately the social sector schemes have failed in the last few decades post-independence and the government needs to concentrate on rural jobs, health, sanitation and education for the rural sector etc. There is a huge pilferage and government grant goes to the ghost beneficiaries leaving the actual beneficiaries in woe. If the private players and IT companies are encouraged to take part in rural development then better e-governance can be maintained.
The projects awarded under the public-private partnership (PPP) model in roads, power generation, etc., are facing many hurdles and the government needs to re-examine the present model of infrastructure contracting and financing. Funds-starved developers are quitting projects, leaving them midway. Renegotiation of contract awards takes longer than expected due to regulatory hurdles and the projects get delayed further.
Source- The Financial Express
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