Ex-finance commission panel chiefs raise key economic issues – Times of India

Ex-finance commission panel chiefs raise key economic issues - Times of India

New Delhi: Two former… Finance Commission The chiefs NK Singh And Vijay Kelkar have raised key issues that policymakers need to address as the economy changes in the coming years.
Kelkar, who headed the 13th Finance Commission, stressed the need to rationalize the GST structure and move to a single rate system, which the panel had recommended before the key tax reforms. level – panchayats and municipal bodies – while also demanding that the secretariat be made independent of the finance ministry.
Although rationalization of rates has been discussed in the GST Council in the past, the current thinking is not in favor of a single rate structure. A discussion on this issue is expected after the general elections.
Kelkar and Singh were felicitated by the TIOL Foundation on Saturday for their contribution to Indian financial architecture.
Singh, who heads the 15th Finance Commission, whose award is valid till March 2026, flagged several challenges before policymakers, including the rise of artificial intelligence, which provides real-time data. pointed to possible technological developments that could make cyclically adjusted deficits possible. Time frame required to reset policies. Currently, there is often a lag in adjusting policies, which creates its own set of complications for policymakers, with central banks currently struggling in the context of loose monetary policy during the Covid-19 pandemic.
They also raised the issue of expenditure quality and expenditure outcomes in determining fiscal outcomes, which have been debated by policymakers but addressed only in scope.
In the same vein, Singh said long-term growth comes from investing in asset-creating infrastructure. “Do they deserve some different treatment than one-size-fits-all in determining delivered levels of fiscal deficits?” This indicates that calculating a broad stroke deficit may not be the best strategy.

Business news,Vijay Kelkar,Politician,NK Singh,GST,Finance Commission

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