Apropos the editorial “Why the Congress must support the GST Bill” (FE, April 7), passage of the GST bill is not a political issue but a public one.
Pass the GST bill
Apropos the editorial “Why the Congress must support the GST Bill” (FE, April 7), passage of the GST bill is not a political issue but a public one. By deterring a needed legislative change, these parties want to get the credit for the passage of the bill. India is one of the low cost countries across the world. It is rather easy to establish new venture in India, as compared to other developed countries. But the only loophole is the taxation. There are plethora of indirect taxes, levied on transaction of goods and services which causes double taxation. GST is the only fuel to budge the engine of our federal economy. All deliberations are going to be in vain if GST does not get passed. In the recent Union Budget, there was a complete miss in so far as the GST is concerned and even after that there is no time frame given by the Ministry. After it is approved by the Rajya Sabha the legislation needs to be further ratified by half of the 29 States so as to roll out. So, there is much more ambiguity, whether the same would come to light or not . All political parties must support for the welfare of the country.
NK Gupta, Delhi
Apropos, the piece “Enhancing the transmission process” (FE,April 7), lower interest rates and liquidity injection will fight stagnation in the classic mould, may not readily apply amidst the current all pervasive and bleak global economic scenario. Liquidity injection in major nations, has failed to animate economies and create jobs. Japan has gone for negative rates,to little avail . Besides transmission, the destination of liquidity is important, for Indian economy. The tendency might well be to acquire paper assets as also towards savings as hedge to uncertain times ahead. Both will not provide hard cash for the ground economy to initiate the balance-sheet effect for jobs addition. Indian industry currently, has an underutilized capacity and thus enhanced demand may not yield more jobs in proportion. In this scenario, a fiscally delicate economy that has yet to find direction and depth may find the huge pay panel outgo not much of a saviour after all . At the least, a reasonable rainfall could help obviate more fiscal load in combating a possible farm distress
R Narayanan, Ghaziabad