Apart from high oil prices, the biggest headwind for India\u2019s growth prospects, outgoing chief economic adviser Arvind Subramanian said, was \u201cstigmatised capitalism\u201d, or the view that the private sector could not be trusted. This, he said, was the reason why the government was not able to make much progress in privatising PSUs, in lowering high telecom levies, writing off enough of Air India\u2019s debt to make the sale alluring, etc. Subramanian was speaking at the Express Group\u2019s Idea Exchange programme. \u201cI do think that stigmatised capitalism is coming in the way of a lot of reforms to bring in the private sector as public officers fear that they might be questioned by investigative agencies later,\u201d he said. Subramanian, who will be leaving at the end of July, said there was no truth to the view that he felt stifled in the ministry and that that was the reason why he was leaving. He said he had made his position known on a variety of issues, and through public documents like the Economic Survey. Had the government been uncomfortable with this, he said, he couldn\u2019t have done as much as he has. While he had argued that the goods and services tax (GST) needed to be less complicated, and said he was happy with the way GST was evolving, he added that the 28% slab needed to be removed at the earliest. And while the cess had to be retained, having just one rate was better instead of the multiple rates right now. \u201cI had proposed 18% and 40% slabs, and the cess is a different way of implementing the 40% rate,\u201d he said. He said that while he had been an enthusiastic proponent of a \u201cbad bank\u201d, this may not have worked in India since the huge haircuts required for selling non-performing assets would have caused a huge backlash. The Insolvency and Bankruptcy Code, on the other hand, ensures these haircuts are judiciary-supervised, he said, and so have faced no problem. While not commenting on the government\u2019s plan to hike minimum support prices of various crops and whether this would make the exports of several crops uncompetitive, the CEA talked of how the Telangana model of giving per-acre cash payments was an idea worth pursuing. He said the Reserve Bank of India\u2019s (RBI) Prompt and Corrective Action was a good way to keep weak banks under check while, at the same time, ensuring that depositors\u2019 money was absolutely safe. He reiterated the view that both recapitalisation and reform \u2014 privatising of some banks \u2014 had to move in tandem. In keeping with his roundabout criticism of the government\u2019s new rules on cattle slaughter over a year ago, he said \u201csolutions shouldn\u2019t create their own problems\u201d on the plan to get Life Insurance Corporation to buy a significant stake in IDBI Bank. Subramanian said he sympathised with the RBI\u2019s view on it not having enough powers to effectively regulate public sector banks, but it was also true that there were huge problems in private sector banks where the government ownership was not an issue. A critic of the RBI\u2019s policy of not cutting rates for a long time, Subramanian said the situation today \u2014 with so many headwinds \u2014 was different and both fiscal and monetary policy needed to be calliberated keeping this in mind.