We will alter policies to accelerate growth: PM

Singh threw his weight behind the fiscal consolidation roadmap prepared by finance minister P Chidambaram that speaks about containing fiscal deficit at 5.3% of GDP this fiscal and to 3% in three years.

The issues of priority for New Delhi include completing the review of the General Anti-Avoidance Rules introduced earlier this year and which apparently intimidated foreign investors. So is a review of the taxation of the IT sector, on which an expert panel is advising the finance ministry. The proposed direct tax code, which seeks to simplify and modernise income tax law and the proposed goods and service tax are also high on the priority list, said the PM.

Singh, who had to preside over an embarrassing roll back of rail passenger fare earlier this year due to political opposition, wants to make setting of rail fare more transparent. “The Railways are working on a rail tariff authority, which will make fare setting a more rational exercise,” he said. He also hoped the land Bill will make land acquisition more fair and transparent.

Singh also urged the industry to do more on inclusive growth.

PM’s prescription

* Cut subsidy on oil

* Implement fiscal deficit reduction blueprint proposed by FM

* Priority to DTC, GST, GAAR, taxation of IT sector

* Speed up disinvestment