Revenue Buoyancy In Indirect Taxes Weak, Need To Cut Centrally Sponsored Schemes: NK Singh
Centrally sponsored schemes need to be reduced in order to manage weak revenue buoyancy in indirect taxes, says NK Singh
Fifteenth Finance Commission Chairman NK Singh has said the number of centrally sponsored schemes needs to be reduced for better spending, as revenue buoyancy in indirect taxes remains weak.
“The central outgo is spread over 700 different outlay schemes,” Singh said at the SKOCH Summit on 'ModiNomics 2.0' held on Saturday. “The number of centrally sponsored schemes exceeds 150. We need to thin this spread for better spending. Revenue buoyancy continues to be weak in the area of indirect tax.”
He said the Goods and Services Tax needs to be watched carefully in the years to come. Compliance needs to be raised and leakages minimised, he said.
“We cannot talk about macroeconomics leaving out important area of deep structural reforms which this economy needs. If the growth rate has been tenuous, we need macro stability but also in terms of reforms which can bring spending, saving and private investment,” he said at the summit which also deliberated on budget wishes and the macroeconomic agenda of the new government.