Universities Should Teach Public Finance Properly, Says Economist | Hubballi News
Dharwad: The intervention of the state in economic activity should be for provision and regulation, said M Govind Rao, former director of the National Institute of Public Finance and Policy and member of the 14th Finance Commission. He was delivering the keynote address at the ICSSR-sponsored national conference on ‘Indian Public Finance and Policy: Achievements, Challenges, and Ways Forward,’ which was jointly organised by the Karnatak University PG department of economics and the Centre for Multi-Disciplinary Development Research (CMDR), on Friday.
Rao expressed regret that public finance is not taught properly in universities and stressed the importance of people understanding the nuances of public revenue and expenditure.
He stated that tax should not be extortionate and that the government should not compete with the market. The government should step in where the market cannot. The taxation system should be broad-based, with lower tax rates, so that the burden of taxation does not fall solely on those who work hard and earn.
The government should exercise extreme caution when levying capital and corporate sector taxes, as this will have a long-term impact on job creation and production activity in the country. Poverty cannot be alleviated solely by raising taxes and providing exemptions. It can be achieved by investing in the right schemes and projects, he added. He stressed the need to minimize the exemptions in GST.
MLA Arvind Bellad, who inaugurated the two-day conference, stated that the central and state governments must reconsider how the country’s financial resources are used.
“We see that a lot of money is wasted on non-productive schemes and projects that don’t help people’s welfare or build the nation. We need to rethink whether the money is going in the right direction,” he said.
MLC Sabanna Talawar said the reforms introduced through the New Economic Policy introduced in 1991 had failed to solve the problems faced by the marginal and deprived sections of the society and added that the Atmanirbhar programme launched by PM Narendra Modi has helped in empowering the deprived classes.