New Delhi: The Biju Janata Dal (BJD) MP, BJD MP Bhartruhari Mahtab, Wednesday, emphasised on the setting up of an expert committee to review all Central charges and cesses, except taxes. The committee is also expected to provide recommendations to promote more state-specific fund
allocation.
Speaking in the Lok Sabha on behalf of the party on Supplementary Demands for Grants, Mahtab said since 2014 the Union government has imposed multiple cesses for various causes— starting from clean India cess, increase in education and health cess, increase in clean energy cess— up to 800 per cent.
“In spite of the government’s GST vision to promote ‘One Nation One Tax’ system, the cesses are still emptying the pockets of the citizens. Although the Central Government has failed to explain the non-utilisation of collected cesses on multiple occasions, still there has not been any indication to improve upon the current practices. I would like to get clarifications from the Finance Minister as to how these funds are to be utilised? Secondly, whether the funds have any negative implication on the states’ economic condition,” said Mahtab.
The BJD MP also asked the government to make a monitoring dashboard for various cesses and surcharges, like funds collected throughout the country and the projects funded through the collected funds in order to review the specific economic loss to the states and particular industries.
“This model can guide the government to reduce the cess charges,” said Mahtab.
Raising concern over the deteriorating economic growth, the BJD MP is of the opinion that the most disturbing aspect of the current economic slowdown is the stunted growth of the middle class. He said the Centre needs to address the overarching issues of agricultural and resultant rural distress. “It needs to reform the market for agriculture. There is a need to ignite rural demand for quicker economic recovery,” he added.
He stressed upon boosting labour income to revive growth.
“We are supposed to benefit from favourable demographic dividend but, actually, we are lagging behind. Therefore, various blockages in the economy’s arteries need to be cleared. These blockages are not limited to the banking sector or real estate sector. The government and public sector must also start disbursing funds on time. The only way out for the economy is private investment reviving,” Mahtab added.
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