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ET view: Welcome booster package for the economy

The reform of taxman-taxpayer interface, deploying technology and eliminating direct contact, is most welcome.

ET Bureau|
Aug 23, 2019, 11.32 PM IST
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ET view: Welcome booster package for the economy
The biggest reform, however, is a change in the government’s attitude.
The additional layers of cess this year’s Budget put on foreign portfolio investors has been removed, and this would bring some of these touchy characters who had fled the Indian market back. Frontloading recapitalisation of banks and freeing up credit flows to NBFCs are welcome, as is the intent to activate the debt market. However, availability of longterm funds for privately built infrastructure from the bond market depends on the government and state owned enterprises not mopping up all available household financial savings for their own requirements.

The reform of taxman-taxpayer interface, deploying technology and eliminating direct contact, is most welcome. The decision to accelerate GST refunds will boost exports, besides assisting micro, small and medium enterprises in general. Reinvigorating the Trade Receivables electronic Discounting System (TReDS) platform, where invoices of small firms can be discounted before receipt of payment by their buyers, will increase enterprise liquidity, as would the kind decision to stop delaying payment by the government for the work done by it.

The biggest reform, however, is a change in the government’s attitude. From imperious disdain, it has adroitly moved to informed responsiveness. This is essential for keeping policy relevant, and the dialogue between industry and the government should sustain.
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