Looking into India’s election cycle history, no government has remained so restrained on the fiscal side as the present government, Principal Economic Advisor Sanjeev Sanyal said. For the same reason, the current government can’t be accused of populism, he told CNBC TV18. On the contrary, the government is criticised for being too conservative about everything, he added. On the issue of rising NPAs, Sanjeev Sanyal had told ET Now yesterday there is no need to combine two poor banks as consolidation is a second order solution and public sector banks (PSBs) need to focus on NPA resolution.
He also told ET Now, the banks have recovered over Rs 90,000 crore in many accounts post Insolvency and Bankruptcy Code (IBC) introduction. IBC has helped to bring back fund to the banking system, he had said yesterday. Many promoters have repaid loans fearing losing control on firms, he said.
Meanwhile, on Saturday said Goods and Services Tax (GST) slabs may be brought down to three along with the exemption category in order to further simplify the country’s tax regime. The lower GST rate of 5% and the middle rate in the range of 12 and 18% can be combined to a central rate of nearly 15%, he said. It will give us a top rate of 25% and the maximum number of goods will be taxed at a central rate of 15%, he added. We are looking to bring into system a very simple rate that is applicable on most of the goods, he then said.
Sanjeev Sanyal said the centre might even ease the direct tax collection system further if the government’s tax collections remain robust. Further, it might even consider cutting tax rates. More and more number of people will be paying taxes as the tax framework gets simplified, he said. Since the introduction of GST, many more people are now paying direct taxes.