Budget 2020: Don’t Give Tax & Fiscal Cuts — Just Give Us ‘TRUST’

It’s a familiar cacophony. Cut taxes. Invert the inverted duty structure. Control the fiscal deficit. Be honest about your arithmetic. Abolish equity taxes. Step up government expenditure, the fisc be damned. Bring back investment allowance. Slap inheritance taxes... And on it goes, a laundry list of standard policy tactics which could revive India’s economy. Frankly, the time for budget quick-fixes is over. If PM Modi genuinely wants to rejuvenate, he’s got to create ‘TRUST’ for India’s private enterprise which accounts for 90% of the economy. India’s bureaucracy has always been deeply suspicious of well-regulated markets. Which is why they love to micro-manage outcomes. But this time, their quest has become maniacal. If you create truly competitive markets, ‘super profits’ will vanish on their own — when will our policy-makers understand that? We should have learned from Ben Bernanke, who authored TARP (Troubled Assets Reconstruction Program) and saved America’s economy in 2008. The ‘criminalisation’ of business has now become quite outrageous. Therefore, it has also had the most harmful impact on India’s economy. Host: Raghav Bahl Editor: Mohammad Ibrahim Producer: Sonal Gupta Read the story on The Quint  Learn more about your ad choices. Visit megaphone.fm/adchoices