ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by M Govinda RaoSubscribe to M Govinda Rao

Value Added Taxation in the States-Challenges Ahead

Challenges Ahead M Govinda Rao J V M Sarma The need for co-ordinated development of domestic trade taxes in the Indian federal polity has shifted the focus to reforms in the states' sales tax systems. Detailed deliberation has led to a consensus on the need to transform the prevailing sales taxes into a destination based consumption type value added tax. Attempts to reform sales taxes, however, have not been always in the right direction and, in addition, have met with resistance from traders. Based on the experience gained so far, this paper attempts to set out the strategy and stages of reform towards evolving the value added tax which is less distortionary and more acceptable to traders.

World Bank on Fiscal Adjustment in India

World Bank on Fiscal Adjustment in India M Govinda Rao R T Shand K P Kalirajan The World Bank's Country Economic Memorandum (CEM) on India this year reviews the progress of fiscal reforms at central and state levels. However, like in the past, the emphasis on reducing fiscal deficits rather than increasing public savings robs the analysis much of the relevance. Also, its assertion that there is no further scope for expenditure compression and additional deficit reduction should be achieved by increasing taxes is not based on sound empirical analysis. In fact, such a recommendation may signal a spate of spending on populist schemes as has been seen recently. Similarly, attributing fiscal problems at the state level to inadequate revenue efforts is not based on facts. This can not only encourage profligacy, but also may introduce additional sources of inefficiency.

Implications of 1994-95 Budget for Growth and Stability

The government has been emphasising the need for wideranging economic reforms ever since the economy pulled back from the brink of a crisis in 1991 Some of the reforms have been pushed through, but one of the major reasons for the economic situation reaching a crisis point in 1991

Subsidies in Higher Education

pre-1989 period, and in the light of the sweep- ing political development of the last three yean and fundamental changes taking place in the former socialist economies, it is not yet clear how these provisions will be or have already been altered.

Issues before Tenth Finance Commission

Issues before Tenth Finance Commission Raja J Chelliah M Govinda Rao Tapas Kumar Sen This paper seeks to highlight the major issues before the Tenth Finance Commission.

Proposals for State-Level Budgetary Reforms

M Govinda Rao This paper seeks to examine the present state of public finance at the state level with a view to tracing the emerging trends in the medium as well as long term. The objective is to identify the major problem areas and to indicate the policy changes needed to tackle them. Section I of the paper brings out the seriousness of the fiscal problem at the state level. The major trends in expenditure and revenue are discussed, respectively, in Sections II and III and Section IV deals with the policy changes to deal with the identified problems.

Volume and Composition of Government Subsidies in India, 1987-88

Volume and Composition of Government Subsidies in India, 1987-88 Sudipto Mundle M Govinda Rao This paper attempts to measure the volume and composition of subsidies provided by the Central government and major State governments and concludes that a substantial proportion of GNP, much larger than the explicit subsidy as revealed in the budgets or as computed even by the broader National Accounts definition, is being distributed in the form of subsidies through the Central and State budgets, much of it invisible, and that it is not at all clear that these subsidies are flowing to the intended beneficiaries.

NINTH FINANCE COMMISSION S AWARD IV-Some Conceptual and Methodological Comments

Some Conceptual and Methodological Comments M Govinda Rao The Ninth Finance Commission has broken new ground in some respects. In particular, the attempt at linking transfers to offset the fiscal disadvantages of states is noteworthy. However, the commission has missed the opportunity to make an integrated assessment of the revenue accounts of the states. The continued adherence to the compartmentalised approach to assessing the plan and non-plan sides of the states' budgets is clearly a disappointment Also, it is doubtful that the states and the centre will adhere to the plan of phasing our revenue deficits. While non-adherence by the states will largely reduce their investments, that by the centre will hurt the economy as a whole.

Measuring Tax Potential-Some Clarifications

Measuring Tax Potential Some Clarifications M Govinda Rao J V M Sarma THE first report of the Ninth Finance Commission has evoked widespread interest. This is evident from the number of articles that have appeared in professional journals and newspapers in recent times. Many of these articles are of a general nature covering the entire canvas of the recommendations made by the commission for the year 1989-90. The recent article in EPW by N Krishnaji (Feburary 4), however, assumes a special significance as it concentrates on the specific issue of the approach to measuring tax potential adopted by the Ninth Finance Commission.

Cost and Efficacy of Fiscal Incentives- Case of Sales Tax Subsidy

Cost and Efficacy of Fiscal Incentives Case of Sales Tax Subsidy V B Tulasidhar M Govinda Rao Fiscal incentives to promote industrial development have multiplied, but their cost and their effect on industrialisation remain indeterminate. There exist some studies of fiscal incentives extended by the Central government, but those given by State governments remain an unexplored area.

Excise Duty Evasion on Cotton Textile Fabrics

The few studies that exist of tax evasion in India have been largely confined to direct taxes, particularly personal income-tax, and there is hardly any empirical study of evasion of commodity taxes. Given that commodity taxes predominate in the government's tax revenues, this is an obvious, lacuna.

Elasticity of Non-Corporate Income Tax

Elasticity of Non-Corporate Income Tax in India Amaresh Bagchi M Govinda Rao ANUPAM GUPTA'S comment on our papery (EPW, July 16) in response to our criticism of his low estimates of the elasticity of the noncorporate income tax in India brings to the fore some important methods logical issues involved in the estima- tion of income elasticity of income tax and the pitfalls of reading more from the elasticity estimates than is warranted.


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