The government has already closed down bodies like Jute Advisory Board, All India Handloom Board and such others to remove “patently absurd regulations” that are coming in the way of starting a new business or exiting from a business.
In a privatisation drive, the Centre is systemathically shutting down government departments to get rid of absurd regulations that hamper while starting a new business or exiting from a business. “We are systematically shutting down departments (and) autonomous bodies,” said Sanjeev Sanyal, principal economic advisor to the ministry of finance.
The government has already closed down bodies like Jute Advisory Board, All India Handloom Board and such others to remove “patently absurd regulations” that are coming in the way of starting a new business or exiting from a business. It takes 1,570 days to shut down a company which is against the spirit of minimum government and maximum governance. Regulations will have to be eased out if the country required the private sector to play the key role in its growth, Sanyal said, adding it’s not the government’s job to get into businesses but it will give the background support to enable businesses.
“We are unapologetic to privatisation and it will be done with companies which can be better managed privately,” Sanyal said at a session of the Bharat Chamber of Commerce. But the government can create new PSUs and at present is working to put together the New Development Finance Institution (DFI), which would be 100% government-owned initially and later on get more stakeholders. It will look into the financing needs of the private sector. But disinvestment will be done on a case to case basis leaving it to the Department of Investment & Public Asset Management (DIPAM)’s prerogative.
“ We are happy to support the private sector with lower capital cost and lower taxes”, Sanyal said. But the private sector needs to get their animal spirit to get the mechanism of growth running, he added.
The Budget, he said, has been conservative in forecasting a 14.5% GDP growth for FY22 of which 10% is real GDP and 4.5% is inflation. The IMF has projected India’s GDP growth at 16% and Moody’s even higher for FY22. The forecasts signal strong recovery post-pandemic with the recovery been possible for the government’s denial to create any artificial demand by rolling out large stimulus like many other countries.
At an absolute lockdown situation, there was no point in creating artificial demand. Cash flows went into the system from October onwards. The government is focused on creating more assets laying emphasis on infrastructure buildings that would to lead to create more jobs, Sanyal said.