Budget, Business & Growth Rates in India



< 1 minute read
Over the last 2 weeks, online news portals, newspapers, magazines etc. are analyzing the budget extensively. There is a rare consensus on the missed historic opportunity to put India in a higher growth path.I feel there is too much attention on the direct and indirect tax rates and also the allocations and soaps to various sectors of the economy while analyzing the budget. The need of the hour is ways to reduce the compliance cost [for businesses] and the enforcement cost [of the government]. I think very little has been done in this direction.The government can learn a lot from the evolution of business over the last few decades to organize itself for more efficient administration. We have seen most businesses moving from a functional organization model to a strategic business unit model. These companies also have policy making, execution and review/audit responsibilities clearly defined.  Along similar lines, India can go for policy-making bodies [which are functional], service departments [single window for every business] and enforcement agencies. Such organization can lower the enforcement cost for the government and the compliance cost for the business Simplification of compliance, enforcement and be giving businesses one interface to the government, will pave the way for higher growth rates – Kumar Vembu.
0