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Central government has to do the balancing act of meeting its ever increasing expenditure
after accepting all the pro-employee recommendations of the finance commission. The tax
revenues are not enough to meet the interest obligations of the past loans and the salaries of
Government employees. As a result, the government is not able to afford welfare measures
and expenditure on such essentials as health educations. It now has two options; a) it can
cut down its own expenditure b) it can withdraw even further from essentials and cut down
welfare measures. a) seems impossible for this or any other government and b) has its limits,
But my guess is that b) it will be and possibly some more indirect taxes on us despite the
recommendations of Raja Chelliah Committee. Incidentally, one has not heard of or from the
"Raja" of taxation lately.
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