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M Govinda Rao
Articles by M Govinda Rao

Developed country ambitions need deep structural reforms

The most important reform is to reduce the borrowing costs of businesses by reducing public borrowing

To achieve developed country status, India’s GDP has to grow by an average of ~9% annually over the next 25 years
Published on Jun 13, 2024 09:23 PM IST

Good GDP numbers hide many fault lines

Structural reforms are necessary to sustain India’s high growth trajectory and enable the nation to achieve developed country status by 2047

Currently, GDP growth is led predominantly by private consumption and public investment.(Representative image)
Published on Oct 12, 2023 10:12 PM IST

16th finance commission faces an uphill challenge

The 16th FC faces challenges in navigating the difficult fiscal environment of Indian federalism, with tense relationships between the Union and some states

15th FC recommended the setting up of an inter-governmental group to define and achieve fiscal sustainability and design a new framework and implementation schedule.( Ministry of Finance/Government of India)
Published on Aug 16, 2023 10:11 PM IST

Expand GST base, reduce the compliance burden

Pruning the GST exemption list and keeping the threshold at a reasonably high level is an integral part of the reform to keep the tax base broad and avoid levying it at high rates

The main argument for exempting pre-packed food items is that these constitute a large proportion of the consumption basket of low-income groups. However, most low-income households do not buy pre-packed food items but items sold in small quantities and loose. (Arun Sharma/HT PHOTO)
Updated on Aug 02, 2022 06:25 PM IST

The road ahead on revenue compensation to the states

As the economy recovers and with the improved compliance, the actual growth in revenue would be higher and this may obviate the need for compensation by many states. It remains to be seen how the Council will tread this difficult path.

Implementing GST by combining 13 domestic trade taxes levied by the Centre and states was by no means easy. (File Photo)
Published on Jun 27, 2022 08:08 PM IST
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