M Govinda Rao

Articles By M Govinda Rao

89 Articles

How to revive growth: Monetary policy has run its course and it’s time for fiscal policy to take the baton

While growth is likely to moderate in the coming quarters due to waning base effect, achieving the pre-pandemic level of GDP and acceleration in growth thereafter will depend on proactive government spending as neither privat

There is a need for a holistic review of trade policy to energise exports as an effective engine of growth.

Spurring growth in challenging times

Improving PSB governance and IBC reform will be key to this

Since 2017, the government has been in a protectionist mode, although India’s history clearly shows this to be self-defeating.

TRC gave direction to India’s tax reforms

It focused on rationalisation of rates and the tax structure, and simplification of the process


Changing GST rates for Covid-supplies no panacea

The solution lies in ensuring adequate supply and not making ad hoc changes to GST rates


Second Covid-19 surge: Dealing with the uncertainties

Vaccine is a national public good, and it must be financed through taxation and made available to all uniformly without charging

With the fraternity of these unsung warriors faced with severe adversity and stretched, unless immediate remedial action is taken as suggested by Dr Shetty, the system will collapse.

The number game: Making sense of GDP estimates

The sector-wise estimate for Q4, deciphered from the three quarter estimates and the second advance estimate for the whole year, does not make much sense

The increased GST collections of more than Rs 1 lakh crore and the record collection of Rs 1.2 lakh crore in January also indicated recovery.

Union Budget 2021: Budget signals reform, implementation will be key

Union Budget 2021 India: A fine balance has to be struck to ensure that more allocations are made to the sectors with high fiscal multipliers and high employment intensity

Deficit danger: The perilous state of state finances

A 10% Contraction in tax revenues and a shortfall of Rs 50,000 cr in non-tax revenues & central grants means states will see a revenue shortfall Rs 5.5 lakh crore

RBI must be complimented for its analysis and the annual compilation of all the states’ and Union Territories’ (with legislatures) budget data.

Charting recovery: Next on the reforms agenda

Govt did well on Farm, medical education, etc, reforms. Now, it must work on bank reforms, judicial & police reforms and shunning protectionism

Goods & Services Tax: The compensation conundrum

There was no reference to “Act of God” in the GST agreement, nor was it provided that the states will have to borrow & pay interest on the compensation loans.

Should states be penalised by reducing their share of taxes because Centre failed to reform PSBs?

Reducing the states’ share in the divisible pool of taxes because the Centre requires fiscal space to recapitalise PSBs is tantamount to penalising them for the Centre's mistakes

The genuine question, which the Commission must consider, is not whether or not the issue of bank recapitalisation comes within its ambit, but the larger issue of the role of the government itself.

Why there’s a need to stabilise the GST tech platform

Apart from the rate-structure maze, another reason why GST revenues are missing the mark is poor compliance, which the GST tech was supposed to address.

Borrowing room for states, sans cooperative federalism

The stimulus announced by the Union finance minister in five instalments is not likely to have much impact in reviving the economy in the short term.

instant money, quick loan, money lending, money borrowing, nbfc, p2p lenders, unsecured loans, low interest rate,

Coping with coronavirus: The next steps

In the face of the corona-crisis, the Centre must postpone the fiscal consolidation, and even relax states' fiscal deficits, while keeping a close eye on inflationary prices.

How to avoid harassment of taxpayers because of overestimated tax revenue collections

Overestimating tax revenue collections leads to harassment of taxpayers, and poor budget management. Independent fiscal institutions can help india overcome this

For example, in FY19, the revised estimate of central tax revenues was taken at Rs 22.48 lakh crore even as the actual collections reported by the Controller General of Accounts for the year was Rs 20.8 lakh crore.

IMF report: Can monetary policy rescue from economic slowdown?

The IMF report states that the downside risks to growth can arise mainly from the inability to undertake structural reforms, shortfalls in revenue collections, slowness in cleaning up the balance sheets of the PSBs and corpor

IMF, IMF report, monetary policy, economic slowdown, GST, Goods and Services Tax,  Insolvency and Bankruptcy Code, IBC, FDI , PM Kisan

Tax revenues: Sequencing the GST reform

Structural and operational reforms—reducing number of tax slabs and broadening the base, etc—must be undertaken once tax revenues become relatively stable

GST reform, GST revenue, GST implementation GST departments, GSTR-3B, Consumer Price Index, GST allocation, GSTR-2

Should corporate taxes finance anti-poverty programmes?

As capital is highly mobile, taxing it at high rates may lead to its flight, thereby having adverse effects on economic activity, employment and incomes.

GST, Customs, Excise, CBDT, CBIC, CBEC

Corporation tax cut: Who bears the cost of revival plan?

There are already cries for abandoning the targets to revive growth from various quarters, and it will not be surprising if the FM takes the bite.

After taking steps to aid growth, govt must now work to rationalise GST rate

The govt has taken a few decisions that should Aid growth. Now, it must work ON RATIONALISING GST rate

Indian economy, economic slowdown, niti aayog, automotive industry, non performing assets, Auto loans,GST collections, Economic Advisory Council , global economic crisis

Whither fiscal federalism: Carving out defence fund out of the divisible pool hurts constitutional propriety

The Centre wants a special fund for defence even as its defence-spend to GDP ratio has shrunk, and its spending on state subjects rose from 14% (2005) to 20% (2012)

Jammu and Kashmir News Section 144 imposed in Srinagar; Mufti, Abdullah

Encephalitis deaths: Do we really care?

Encephalitis deaths: Sadly, this has been happening every year either in Bihar or Uttar Pradesh. After expressing shock and sympathy, everything is back in business until the issue stirs up again the next year.

Encephalitis deaths, Acute Encephalitis Syndrome, AES, Muzaffarpur, bihar

Reformist government? Time for Modi sarkar 2.0 to walk the talk

The major problem faced in the country is in the factor markets. It is time that the government came out with the law and regulations regarding land consolidation and leasing, to allow for non-exploitative contract farming.

PM Modi, Modi Maldives tour, Modi Maldives award, Modi in Maldives

Power sharing: Why states are failing decentralisation

The states have not cared to create institutions and systems mandated in the Constitution, including the appointment of the State Finance Commissions, and even when they are appointed, states have not found it obligatory to p

Time opportune to create a Fiscal Council to profligacy of political class

Considering the poor record of fiscal consolidation and the tendency of political parties to make unviable promises, the time is opportune for creating the Fiscal Council.

GST Council needs secretariat, with members having domain expertise to improve tax system

The critical element that helps formalisation is its input tax credit mechanism.

Hope floats: Budget’s tax revenue projections look optimistic

Budget 2019: This year’s budget has a number of initiatives which seems to impact varied sections.

Budget 2019, Budget 2019 tax revenue, Swatch Bharat Mission, Ayushman Bharat, PM-KISAN, GST implementation, SME
Income Tax Calculator, Budget 2019, How to Calculate Income Tax


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