DIRECT TAX REFORMS IN INDIA: PERFORMANCE ANALYSIS IN PRE AND POST LIBERALIZATION PERIOD by Dr P.V. Khatri, and Ms. Promila Bhardwaj
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- DIRECT TAX REFORMS IN INDIA: PERFORMANCE ANALYSIS IN PRE AND POST LIBERALIZATION PERIOD by Dr P.V. Khatri, and Ms. Promila Bhardwaj
- Price : 200.00
- Published on June 1, 2013
- Global Vision Publishing House
- Language - English
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About this issue
High government expenditure generates deficits in budgets, which resulted in fiscal imbalance. Fiscal imbalance is one of the major problems of Indian government in postliberalization period. Though the situation is not new, various budgets during eighties showed towering fiscal deficits. From 1985 to 1990, when the seventh Five Year Plan was implemented in the economy, the pattern of financing during this plan clearly showed the gaps in revenue and expenditure of central government. The magnitude of actual budget deficit during the seventh plan period had been of the order of Rs 29,503, crores which was more than double the estimate of Rs14, 000 crores. This creates a burden of high market borrowings (which includes interest payments and debt repayments) then the estimation. So, due to spiky decline in revenue deficits, the fiscal condition became critical and was not come under the control of government throughout eighties. At macro-economic level, fiscal deficit is viewed as spillover into problems related with balance of payments and, as a consequence, creates inflationary pressure in the economy. The above fiscal situation has remained one of the imperative issues for the government in pre- and post-liberalization period. To bring the situation under control, Government introduced economic reforms in 1991-92 and tax reforms are amongst one of them. In this reform tax rates are reduced for better tax compliance, tax base is also wider for taxing high income group. The tax on market for goods and services are expanded in a big way. Key Words: Post-liberalization Period, Direct.
About DIRECT TAX REFORMS IN INDIA: PERFORMANCE ANALYSIS IN PRE AND POST LIBERALIZATION PERIOD by Dr P.V. Khatri, and Ms. Promila Bhardwaj
Global Journal of Business Management Vol. 4 No. 2, December 2010