While the Budget must chalk out the path for fiscal consolidation, the talk of stimulus withdrawal is clearly unwarranted at this juncture because industry is just coming out of recession and the country’s exports are yet to be on a sustainable growth path and exchange value of the rupee has been appreciating.
My Humble Suggestions to Hon’ble Finance Minister:
1. Exemption limits now are being enjoyed by only large corporate houses and in order to offer level playing field to all industry including the micro, small and medium enterprises (MSMEs) reduce corporate tax by 25% across the board.
2. FDI limit be increased from 26% to 49% especially for health and insurance sectors for better services.
3. Compulsory listing of companies whose registered offices are situated in a particular region with the Regional Stock Exchanges(RSEs) should be introduced to save moribund RSEs from extinction.
4. Control unprecedented rise in food prices by granting sops of zero import duty regime for wheat, rice, pulses, sugar and edible oil by deterring unscrupulous persons to hoard foodgrains.
5. Augment interest rate on Bank FDs and NSE especially for senior citizens.
6. Strict regulations for compulsory disclosure of black money.
7. Allocate more funds for education and mid-day meal and appoint real dedicated and honest observers for proper utilization of such funds but not the bureaucrats and/or politicians who could siphon the funds.
8. Increase in tax/duty on liquor and cigarettes so that poor people are not addicted to unhealthy practice rather inclined to utilize such funds for their family welfare.
9. To bring in a strong legislation by introducing Lok Pal Bill, 1996 to root out corruption at high places.
10. Legislation be made for civil services performance standards and accountability bill in order to remove the red-tapism.
11. There is an urgent need to simplify tax laws to encourage better compliance and discourage tax evasion. Today even a salaries person finds it difficult to file his tax return without the help of a consultant.
12. Legislation and/or strict surveillance mechanism be made against the NGOs, autonomous bodies who have not properly spent funds allocated under various flagship schemes in which the money is directly transferred to their bank account since these allocations of amounts fall outside the purview of government accounts and hence centre’s checks are very much required as this is an alarming situation.

Sankar Lal Singh
Executive-Calcutta Stock Exchange
slsingh@cse-india.com