DARE - Because Entrepreneurs Do

Dilution of  government stake in leading  public sector companies, continuation of low tax regime but high level of compliance while preparing for introducing GST by April 2010 and a 100 billion dollar tap into the soft lending facility of a trillion dollar proposed at G-20 meeting in London last April, are among the Chamber’s suggestions for narrowing the fiscal deficit.

The Chamber President, Sajjan Jindal said, “dilution alone could fetch at least Rs.80, 000 crores”. ASSOCHAM Chief also said that “India’s financial system has to be turned into a world class one to be eligible for a larger share of globally created resources”. It urges tapping into the infrastructure funding facility created by the G-20 to the extent of 100 billion dollars for meeting part of the 500 billion dollar infrastructure investments in the next few years. Among many suggestions in this regard it has demanded a review of all new financial instruments created in the last five years, intensive low cost credit for SMEs and promotion of remote banking facilities to reach up to remote villages.

In a Paper on “Fiscal situation and the task ahead for the new Government”, the Chamber has called for rejecting the demand of some political groups for scrapping the FRBM Act and decline from globalization, characterizing it as “economic adventurism”. “There is no need for accepting a long-term fiscal deficit and deviation from FRBM goals” the ASSOCHAM asserted in a detailed study on the financial situation. “FRBM discipline, good government and stronger economy are synergistic” the Paper claimed.

Source: ASSOCHAM

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