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What now?
1. Reduce the GST to 16%. It will cost 1.8 lakh crores, which is roughly what the govt got from the RBI as a windfall. People spending the money has a much higher chance of driving the economy than the Centre spending it.
1. Reduce the GST to 16%. It will cost 1.8 lakh crores, which is roughly what the govt got from the RBI as a windfall. People spending the money has a much higher chance of driving the economy than the Centre spending it.
2. Cancel all the Centrally Sponsored Schemes. Give that money to the states, or even better to the local bodies. Public expenditure at lower levels of governance will give the economy higher velocity than the slow pace of Central expenditure.
3. India is urbanising, but the legislatures are full of candidates from rural areas. Make the Delimitation Commission permanent, and redraw constituency boundaries WITHIN states every 10 years to reflect migration to cities.
4. Introduce a system of 'local attribution' of taxes. Things like fuel taxes, stamp duty, profession tax, etc. should be shared with local bodies - these reflect economic activity in local areas. Municipalities will then compete for new business and development.
5. Reimagine #MakeinIndia - it needs to be preceded by #SellinIndia. I.e. we must allow a range of products that are not manufactured here to be imported easily and sold first, and that will create the incentive and environment for those things to be made here.
6. Take all the idle cess money that's just lying around unused after being collected for various purposes that were never served, and create a skilling credit fund for all workers to be able to retrain themselves at any point in their career.
7. About 15-20 taxes contribute 95 per cent of the take. Abolish the rest. They're not even worth the cost of administering them.
