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Wednesday, February 25, 2009
RISING LOAD OF FISCAL DEFICIT
I feel one aspect which is less looked at in our budgets is "Measures towards Reducing Fiscal deficit". Fiscal deficit is increasing like anything. Our main concern should be towards reducing the deficit instead of providing sops. I feel once we reach a situation where we have no fiscal deficit, then we can go for sops as much as possible. For reducing deficit, we need to increase revenues and the biggest question is HOW? Increasing taxes or introducing new taxes. I think this is fie but i feel government can do one more thing. It can make a plan for say a period of 3-4 years. It needs to introduce a voluntary measure in which all can participate. Say, in every month one day or in every weel one day can be fixed to collect special taxes for reducing fiscal deficit. It this can be worked out, I feel it will reduce fiscal deficit. Borrowings I feel is not a solution for reducing the pain of fiscal deficit. If the tax is on a specific date or for a specific purpose and very minimal , I dont feel it will hurt anyone. Besides, we the people have been paying so many taxes(direct and Indirect) that one more tax wont hurt (provided is it for a specific purpose and low at the outset). I feel now the time has really come that the government needs to take steps to counteract the deficit. If any government can reduce deficit then people can say that the government has really done something.
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