In the economy of a developing county like India, the role of the Finance Minister is a crucial one. This is more so in the case of the country which has chosen the path of planned development, as Indian has done.
If ever I become the Finance Minister of the country, my first effort would be to root out the demon of back money. It is black money which leads to inflation and to the rise in prices, and this makes financial control almost impossible. Since black money is the money on which tax has not been paid, I will see to it that that evasion is reduced to a minimum. With this end in view, tax structure will be rationalized. The taxation rate will be brought down so as to provide relief to the salaried people as well as to the business community. With a more reasonable tax – structure, the temptation to evade taxes, would no longer be there. Those who still avoid payment of direct taxes, plugged, so that tax-evaders are not able to escape the clutches clutches of the law.
Black-markets hoarders, ect, who run a kind of parallel economy, would also be severely dealt with Laws in this respect would also be made more stringent, and the concerned Government officials would be given more power to deal with such offenders. In this way, the inflation rate would be brought down, and relief provided to the people, groaning under the burden of rising prices and increasing taxation.
I will also see to it that credit facilities are liberalized. Banking services will be extended to the rural areas. With this end in view, Banks will be encouraged to open their braches even in remote villages. Indian farmer is proverbially poor, and owning to his poverty and illiteracy he has always been exploited by the local money lenders. Instructions will be used to the banks (through the Reserve Bank of India) that the needy farmers be given loans on easy and liberal terms. This will enable them to purchase good quality seeds, fertilizers, tractors, etc. Agriculture would thus be modernized and this would lead to increase production. Construction of tube-wells would also be encouraged and villages would be rapidly electrified, so that agriculture production is no longer at the mercy of rains.
While I will continue to encourage large scale industries, the growth of small industries would also be encouraged. They would also be provided with soft loans by the nationalized banks, and if need be more banks would be nationalized. Technicians, live T.V and Radio mechanics, Internet, professional people like Doctors and other self-employed people, would also be given financial help by the banks.
Non-plan Government expenditure would be brought down whenever possible. Wastage would be reduced to a minimum by appropriate measures. I will see to it that, while the just demands of the employees are met with, they also work honestly and sincerely for the good of the nation.
All these measures, I hope, would be brought down whenever possible. Wastage would be reduced to a minimum by appropriate measures. I will see to it that, while the just demands of the employees are met with, they also work honestly and sincerely for the good of the nation.
All these measures, I hope, would go a long way toward revamping the Indian economy. Still, if considered necessary, I will not hesitate to accept foreign aid or to take loans from International Financial Institutions like the I.M.F Funds would also be raised through borrowings from the public. However, I am hopeful that such measures would not be necessary. Public sector undertakings are already showing large profits which are likely to be larger still in the next years. These earnings should be sufficient to fill any budgetary gaps. Those which are running in a loss will be wound up and replaced by private industrial concerns. In the interest of rapid, increased production even multinational concerns will be invited to set up industries in the country. The employees of the sick public sector undertakings would be absorbed in these private industries. Thus a massive programme of privatization would be undertaken to encourage competition and promote production.
In short, as the Financial Minister of India, it would be my earnest endeavour to see that there is an overall increase in production, that the hardship of the people are reduced to a minimum, and through proper fiscal control Indian Economy becomes more and more self-reliant.