Modi for $20-trillion economy |
Prime Minister Narendra Modi said he would not cut subsidies, but reform the complex tax system to attract foreign investment and work to make the government system fast and flexible. Speaking at an event organized by The Economic Times here, Modi said, in 20 years of liberalization, India had not changed a command-and-control mindset. The government should not meddle in the working of firms. The word `reform` figured 15 times in his speech that lasted a little less than 40 minutes. With the budget just six weeks away, the Prime Minister made it clear that he would not cut subsidies as these are needed for poor. He admitted that the subsidy delivery system was flowed. As part of improving governance, Modi said India`s tax system was complex and was crying for reforms. He said tax stability, along with ease of doing business and a positive regulatory framework were being pushed ahead. The state, he said, should focus only on five functions: public goods (defense, police, judiciary etc), its externalities (such as pollution), empower markets, fill information gaps and a well designed welfare and subsidy mechanism.
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