Arvind Panagariya’s mantra to Modi to spur economy: privatise one PSU every week

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Published: May 24, 2019 4:09:20 PM

It is feasible for the government to privatise one public sector undertaking or PSU every week, Arvind Panagariya, former Vice Chairman, Niti Aayog and a noted economist has recommended to the BJP led NDA.

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It is feasible for the government to privatise one public sector undertaking or PSU every week, Arvind Panagariya, former Vice Chairman, Niti Aayog and a noted economist has recommended to the BJP led NDA which saw a sweeping success in the Lok Sabha elections 2019. He said the government should speed up the privation of PSUs. The cabinet already approved the privatisation of more than 2 dozens of PSUs on the recommendations of think tank Niti Aayog last year.

In the first hundred days of its rule, the new government should give a very strong signal for its commitment to reforms, Panagaria said in an interaction with ET Now. He added that the government can do so by doing a number of things which can be on the budget when it is presented in June or July this year.

Before the budget presentation, the government can also announce a number of things. It can announce 25 per cent corporate tax as it had committed earlier, Panagariya said while further adding that the exemptions should be ended so that the actual collection of tax doesn’t suffer. Notably, the government had extended 25 per cent tax for the corporates having a turnover of up to Rs 250 crore in February 2018.

The government can also roll back trade tariffs it had announced in the last two years which are inconsistent with its pro-reform stance.

Praising the February 12 circular, Panagariya said the Jet Airways issue is being resolved speedily because of that circular which is related to banking regulation act. “It is on the strength of that circular that the issue of Jet Airways moves so rapidly, that the promoters were actually let go within a short period of time,” Panagariya said. The NPA clean-up needs to be sped up and the government had huge success in that. The acceleration in IBC, which has already happened, is unprecedented in the 70-year history. In a bid to boost private investment, credit offtake needs to take place in a big way and for that, the government needs to infuse capital in the Public Sector Banks, Panagariya said.

 

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