Budget 2014 must be a game changer, say economists

NEW DELHI: Leading economists batted for a game changing budget that would boost manufacturing sector, ensure quality fiscal consolidation and roll back the controversial retro tax law.

In a pre-budget consultation with finance minister Arun Jaitley, which went on for about over two hours, economists raised concerns about the slowing manufacturing sector and the kind of measures that the government could take to revive it.

“If it is not a game changing budget then a lot of people will ask why have we voted you to power….It should be non-Congress budget substantially different both in the way of raising taxes and how it spends the money,” said Surjit Bhalla, chairman, Oxus Investments.

Economists also emphasized on simplification of tax structure and withdrawal of the 2012-13 budget retrospective amendment of the income tax law to tax indirect transfers of assets.

Economists also sought provision of credit and support structure for labour intensive manufacturing sector to create more job opportunities, and changes in labour laws.

“Measures to boost investment in industrial and manufacturing sectors were highlighted by everyone-…Recaliberation of revenues and expenditure of the government was also in focus,” said Nagesh Kumar, Director of Economic and Social Commission for Asia and the Pacific (ESCAP)'s South and South-West Asia Office, based in New Delhi.



“Rationalisation of tax structure was highlighted in the meeting,” said Ashima Goyal, professor at Indira Gandhi Institute for Development Research.