our opinion on Taxation and public financing in view of current economic ( Covid-19) situation in India email- dipankarpharma1@gmail.com

1. IN THE VIEW OF CURRENT
ECONOMIC CONDITION
Taxation & Public
Expenditure
BY
Dipankar Dutta
Dhriti Kr. Das
Assam University , Silchar
COVID-19 ECONOMIC SITUTION INDIA

2. TAXATION POLICY
● At the situation of economic crisis, some leeway will
provide much needed relief to the taxpayers.
● Indian government announces various relief
measures like financial aids, provision of free or
subsided food , debt payment deferrals etc.

3. ● All the financial problem rises a question over taxation
policy.
● According to the survey by Ficci and Consultants
Dhruva advisors,44% companies wanted relief.

4. ● According to my opinion, , if the government don't
want to aggravate the financial deficit, then it's
alright.
● But if they want to give stimulus to the industry, they
can reduce corporate tax around 15 per cent for all
manufacturing units.
● This would also contribute to the mission
“Atmanirbhar Bharat”.

5. ● Regarding income tax, government should offer
incentives for those who can pay their taxes for
whole FY2021 in advance.
● Doing so, the government can generate instant
revenue to utilize for the crucial time expenditure
and taxpayers will also get some relief.

6. ● Considering Goods and services tax, government has
to reduce it's GST rate over some industries which got
severely impacted during the lockdown, such as travel
or transportation, tourism and hospitality, automobile,
textile industry etc.
● The GST rate of the exporting goods should be lowered
so as to recapture the export market.

7. • Public Expenditure refers to the expenses incurred by
the govt. for maintenance of Govt. and to preserve
the welfare of the society.
• Public expenditure are classified into two types –
 Development expenditure
 Non- development expenditure
Public Expenditure

8. Development Expenditure
1)Health facilities
• Govt. must provide more health facilities like – increase number of
covid testing, number of ICU , ventilators etc.
• Cheap and free healthcare facilities
• Try to improve rural health
2)New unnecessary ( costly ) infrastructure.
• Unless and until if it is too much needed no new unnecessary
infrastructure must be initiated by considering the current economic
situation. Like shopping malls, car parking etc.
3) Agriculture
• The agriculture sector must be giving preference as it is the base of
our economy.
• Work hard for the good Inter relationship between Agriculture and
non agriculture sector.
• Migrant workers in agriculture.

9. 4) Industry
• Govt. should encourage new entrepreneur. Like- proving them loan ,
subsidy , relaxation in tax etc.
• Vocal for local
• Industry also can help agriculture by providing best quality pesticides,
agricultural tools etc.
• E -business must be encourage by Govt. like home delivery business, e
grocery etc.
• Generic medicine and pharmacy sector business.
• Try to increase National Income so that the
5) Unemployment
• Govt. should take initiative in new recruitment like medical dept., police
dept., supply dept. etc.
• So that money are available at consumers for Buying, Savings &
6) Supply System
• Equality in distribution of all essential products.
• Reduce inequality and maintain economic stability.

10. Non Development expenditure
Administrative Services
• The cost cutting strategy must be adopted eg.- using start hotel for
govt. meeting, Minister & Officers cost cutting like Air travel class
changing, railway, unnecessary safety cost etc.
Maintenance of Law & order and defense
• Internal law and order must be maintained.
• International relationship must be carefully maintained.
Control doesn't mean complete shutdown of
expenditure
There must be –
• Audit control ( CAG and other agency )
• Budgetary control
• Parliamentary control – a) Public account committee
b) Estimate committee

11. ---------------------
Thank You
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