Critically appraise the fiscal reforms initiated under NEP of 1991.
Critically appraise the fiscal reforms initiated under NEP of 1991.
Fiscal reforms are concerned with the reforms initiated in government's taxation and public expenditure policies The following reforms were introduced in this category:
(i) The fiscal reforms simplified the tax structure and lowered the rate of taxation. The maximum rate of income tax was brought down to 30% from 51%.
(ii) The rates of various indirect taxes, such as customs duty, excise duty, etc were reduced considerably.
(iii) The government decided to reduce subsidies so that it can control expenditure.
(iv) Conscious efforts were made by the government to control its expenditure so that a mounting deficit could be controlled.
These measures helped to reduce tax evasion and increased government's revenues. By controlling its expenditure and by increasing revenues, the government succeeded to a certain extent in controlling the budget deficit.
Fiscal reforms are concerned with the reforms initiated in government's taxation and public expenditure policies The following reforms were introduced in this category:
(i) The fiscal reforms simplified the tax structure and lowered the rate of taxation. The maximum rate of income tax was brought down to 30% from 51%.
(ii) The rates of various indirect taxes, such as customs duty, excise duty, etc were reduced considerably.
(iii) The government decided to reduce subsidies so that it can control expenditure.
(iv) Conscious efforts were made by the government to control its expenditure so that a mounting deficit could be controlled.
These measures helped to reduce tax evasion and increased government's revenues. By controlling its expenditure and by increasing revenues, the government succeeded to a certain extent in controlling the budget deficit.
