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Economists pitch for simplifications of GST, DTC rollout during pre-Budget meeting with FM

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Press Trust of India New Delhi
Last Updated : Dec 20 2019 | 8:10 PM IST

Simplification of GST, reforms in small savings rate and implementation of Direct Tax Code (DTC) were some of the suggestions given by economists during their customary pre-Budget consultation with Finance Minister Nirmala Sitharaman here on Friday.

Among other key suggestions were to attract more investments to support growth; streamlining policy matters and faster resolution of policy issues in all sectors; fiscal management and reforms in the power sector.

The economists were optimistic about the India growth story and put forward ways through which the country can achieve the goal of USD 5 trillion economy.

"We have bottomed out as far as growth reduction is concerned...what can be done to accelerate growth to 7-7.5 per cent," former chief economic adviser Arvind Virmani said after the meeting.

Implementation of DTC is very important for all the small business, he added.

He also pitched for simplification of GST and rationalisation of slabs.

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The main focus areas of the meeting included steps needed to achieve USD 5 trillion economy, job-oriented growth with focus on manufacturing and services, transparency of fiscal arithmetic, monetary transmission, government's fiscal prudence and fiscal stimulus, revival of NBFCs and inflation targeting, among others, the finance ministry said in a statement.

There were also suggestions with regard to ways to enhance rural demand; improving oversight of financial markets; boosting agricultural exports and simplifying procedures to give financial savings a shot in the arm.

Along with the finance minister, the meeting was attended by Minister of State for Finance Anurag Thakur, Finance Secretary Rajiv Kumar, Economic Affairs Secretary Atanu Chakraborty, Revenue Secretary Ajay Bhushan Pandey, and other senior officials of the ministry.

Some of the economists who were part of the meeting included Rathin Roy, Director, NIFP; Shekhar Shah, Director General, NCAER; Surjit S Bhalla, Managing Director, Oxus Investment; Ajit Mishra, Director, Institute of Economic Growth and Sachin Chaturvedi, Director General, RIS.

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First Published: Dec 20 2019 | 8:10 PM IST

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