Financial Daily from THE HINDU group of publications
Wednesday, Aug 25, 2004
Financial Daily from THE HINDU group of publications Wednesday, Aug 25, 2004 |
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Economy Industry & Economy - Infrastructure PM to head infrastructure panel — Promises simpler tax compliance regime Our Bureau
The Prime Minister, Dr Manmohan Singh, flanked by Mr M.K. Sanghi (right), President, Assocham, and Mr H.S. Singhania, Chairman, JRD Tata Centenary Celebration Committee, at the function in New Delhi on Tuesday. - Kamal Narang
New Delhi , Aug. 24 THE Prime Minister, Dr Manmohan Singh, on Tuesday announced the setting up of a high-level committee on infrastructure to monitor the progress in all key projects. Inaugurating the JRD Tata Centenary Celebration organised by Assocham, the Prime Minister assured the business community that tax procedures would be simplified in the next Union Budget. "I am aware of the need to further simplify the procedures for tax compliance and the Finance Ministry will address these and related issues in the next Union Budget," he said. In his first address to representatives of the Indian business community after taking office as Prime Minister, Dr Singh also reiterated the Government's commitment to a sustained GDP growth rate of 8 per cent per annum and carrying the reform process further. The committee on infrastructure, to be headed by the Prime Minister, would monitor progress in sectors such as airports, power and telecommunications on a quarterly basis to ensure that targets are met. The Planning Commission will function as the executive arm of the committee, identifying bottlenecks in policy implementation and guiding the Ministries concerned to speed up implementation of projects. Dr Singh said that for the economy to grow at 7-8 per cent per annum, agricultural production should grow by at least by four per cent and industrial production by 10-12 per cent. "It is easy to see that the two are interlinked. I realise that for this to be feasible, it is of utmost importance that we create an enabling environment that rewards creativity, risk-taking and the spirit of enterprise." He added that acceleration of private investment was a function of infrastructure and other incentives. "The tax reforms already undertaken as well as the proposals in the pipeline like VAT have addressed the fiscal policy agenda that industry has been signalling for some time." Dr Singh also said that the "tyranny of over-inspection" must end. Towards this end, he will be reconstituting the Prime Minister's Council of Trade and Industry. One of the areas of focus of this council will be the ending of the inspector raj. "The industrial and tariff policy reforms we initiated over a decade ago have addressed to some extent the demands of industry. However, the time has come for us to move ahead on the unfinished part of the agenda. Much of this, however, is in the realm of State Governments," he said. "Further reform of industrial and tax policies, efficient functioning of municipalities and renewal of urban infrastructure and the ending of the so-called inspector raj are all issues that State Governments must address." Dr Singh further said that the Government was committed to taking the country forward on the path of modernisation and rapid industrialisation and making India a "superpower of the knowledge economy. This we must do by walking hand-in-hand with our industry and commerce."
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